Research Notes on GPP Guyana Morabisi Project, Coal to Liquids Project & SOP projects, page-467

Ermm...paging Prime Minister Turnbull...a certain Mr G King would like to see you


http://www.theaustralian.com.au/bus...n/news-story/01e26191166240886819987c4568cd45

PM rejects push to keep Hazelwood open


Hazelwood power station. Picture: David Caird

• The Australian
• 12:00AM March 24, 2017
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• SARAH MARTIN
  
  Political reporter
  Canberra
  @msmarto
  

Coalition MPs, including several senior ministers, are agitating for the government to keep Victoria’s Hazelwood power station open, but Malcolm Turnbull and Scott Morrison have rejected the idea.
The Australian understands the Turnbull government has discussed trying to fund the $750 million needed to keep the coal-fired power station running as an emergency measure to secure energy supply for the next five years, until the Snowy 2.0 project comes on line.
The Treasurer is understood to have spoken about the idea in a cabinet meeting this week, but advised ministers that it would not be viable to use government funds to subsidise the plant to stay open.
A number of Coalition MPs believe the power station’s operator, Engie, could be encouraged to keep the plant operating for several more years if the government could take on its $750m in liabilities that relate to rehabilitation and demolition.
The proposed rescue bid is believed to have been raised also on Wednesday in a Coalition backbench rural committee and has since gained momentum among key backbenchers and several ministers. However a senior government source confirmed the Prime Minister and Mr Morrison had “rejected” any bailout of the plant, with alternative estimates suggesting it would cost $1.3 billion to keep the lights on.
A senior Liberal said it was “crazy” the leadership team was not considering a bailout package, given its desire to keep a focus on energy security and affordability in the lead-up to the next election.
The ageing coal-fired power station is due to close on Monday after its French owners said it was not economical. However, under the idea floated within government, an deal would be sought with the company to share the cost of outstanding maintenance.
Several government MPs said saving the plant would be a powerful political campaign tool, and could be used to contrast with images of the Northern power station in South Australia being blown up after the state Labor government rejected a rescue bid from operator Alinta to stay open.
There is also widespread concern about increased risk of power price rises and blackouts once Hazelwood closes, which could be blamed on the federal government if it did not act, given its decision to elevate energy security as a key priority.
The loss of 2000 megawatts of energy generation from the national market — 5 per cent of all generation — has prompted claims it could lead to a peak energy crisis next summer that could have a direct impact of several billion dollars on businesses affected by load shedding and brownouts.
Mr Turnbull and his energy sub-committee of cabinet met the AEMO last night and are understood to have been reassured there was still enough capacity in the system to mitigate the loss of Hazelwood. One senior minister said there was “no way” the plant would be kept open, but acknowledged there was agitation from backbench MPs for the government to consider a rescue package.
The Australian Industry Group will call today for an 11th-hour emergency intervention to be considered. “In the absence of convincing and appropriately sequenced alternative strategies, the state and federal governments should remain open to finding an 11th-hour solution to keeping Hazelwood operating in some form,” said Ai Group chief executive Innes Willox.
“Hazelwood is a major source of supply in the national electricity market. The tightening of electricity supply and demand, which has increased the significance of natural gas-fired electricity generation even as gas prices soar, has seen the electricity futures price double across most of the market over the past year. ”