At present, east coast electricity supply capacity is a slo mo trainwreck in progress.
Victoria and NSW import electricity from Qld because they produce a deficit and Qld produces a surplus.
From 2013/14, with locked in development growth, Qld will also slip into deficit electricity production.
There are no new significant power stations of any persuasion in the planning pipeline in Victoria, NSW and Qld, with perhaps the possible extension of 200-400MW of gas fired capacity at Tallawarra on Lake Illawarra near Wollongong that I am aware of.
So, where will the combined generating deficit of Victoria, NSW and Qld be sourced? Or, more likely, how will demand be crushed to match available supply?
Come in spinner and toss for electricity price rises !!!
Meanwhile life is beaut, life is rosey, peachy even. So peachy in fact that Politicians are bowing to sectorial and local pressure about no more coal, gas, wind, solar, hydro or any form of power generation you can name.
Not only are the Politiciians saying no to new power generation projects to head off a supply crisis, but they are going to force the price of electricity up way above the normal supply/demand curve with, you guessed it, a carbon tax ... perfect timing with nil foresight eh !
It doesn't have to be this way ... it just takes Politicians/Regulators with vision and gonads ... and that is why we are going to be slow pickled over the next 5-10 years imo.
To add insult to injury, the wondrous resource that is Qld GSG will be tied to long term export contracts and unavailable for domestic energy security.
Cheers Dex
LNC Price at posting:
$3.19 Sentiment: None Disclosure: Not Held
