set to explode off the blocks this morning, page-37

NSW has for years relied on using its vast coal reserves for power generation - however - the Federal Govts determination to push through an ETS is creating considerable angst within Industry -- 'where do we turn to if coal-use becomes a social and economic liability?'

The PEP11 project, should provide a significant bonus for NSW to meet acceptable emissions criteria by incorporating/switching over to gas-fired power stations.

As an excerpt from a March 2009 report, produced for the NSW Business Chamber and entitled Powering NSW, states;

"In 2007 the Owen Inquiry into Electricity Supply in NSW found that the state would need a new base load power station by 2013-14 and that it would take up to six years to plan and commission such a project."

"A 2008 report by the national electricity regulator NEMCO put this date at 2014-15, when NSW will face a deficit of 300 MW2. This means the planning process needs to start now. This urgent need for a new base load station is taking place against the backdrop of the introduction of a carbon emissions trading scheme in 2010."

"This development has significant implications for the relative costs associated with running new (and existing) power stations. The abundance of cheap coal in NSW means this source of energy has historically been the obvious choice for base load electricity generation in the state, coupled with back-up support from other energy sources such as hydroelectricity."

"Looking further ahead, this may no longer be the case once a carbon price is introduced. The NSW Government needs to start planning for the next generation of power stations, beyond NSW’s immediate needs, and looking at a range of options including nuclear, solar, wind and geo-thermal."

Source: http://www.nswbusinesschamber.com.au/reference/influence_government/policy_documents/090325_Powering_NSW_report.pdf

Can nuclear, solar, wind and geo-thermal power generating sites be ready to take over base-load generation from the coal-fired power-stations by 2015?

Sounds like a big ask -- scratch out Nuclear & the on-going drought has already killed input from the Hydro-electric sector.

Developing PEP11 into production will benefit NSW in terms of royalties, plus the usual infrastructure elements and their employement-bonus spin-offs.

With national grid connectivity, an income-generating capacity for Victoria - with its high GHG-emission brown-coal-fired power stations and increasing inability to cope with summer-time brown-outs ensures a healthy market - especially during hot-weather demand.

There would be serious implications for anyone to knock a project like this on the head -- but then again -- will common-sense prevail??

cheers