CME report highlights the need for additional gas generation

The Shadow Minister for Energy Dr Steve Thomas has welcomed today’s report from the WA Chamber of Minerals and Energy that highlights the need for additional gas generation in the South West Interconnected System (SWIS) as a part of the state’s energy transition plan.

“This report has highlighted the urgent need for additional gas generation to maintain grid stability and keep the lights on as we transition the system, which is consistent with the Opposition’s energy policy” Dr Thomas said.

“If we are going to keep the lights on and keep power prices down to a level that households and industry can afford as we reach a lower emissions future, gas is the transition fuel that Western Australia needs.

“This report highlights and reinforces that simple fact.

“It is good to see that the report found a small $10 per Megawatt hour difference in cost between their lowest cost (unconstrained) and their swift decarbonisation models” Dr Thomas said.

“However, when you remove additional gas generation from the equation the cost jumped 63% to be $70 per Megawatt hour higher, and that higher cost will be passed on to every power user in this state.

“The Government’s current transition plan is inadequate and will not work, so I hope the Government accepts this report and modifies its approach.

“Premier Roger Cook has already hinted that the Government accepts the need for more gas generation to underpin grid stability, and this report should result in a Government commitment to make it happen.

“I am calling on the Premier to join me in promoting additional gas generation for the SWIS , whether it is Government or private investment, both of which are fine by me.

“The time for commitment is now or we will not have the necessary energy capacity on line in time.

“Given that it will take three to four years to complete the project, the time to start is as soon as possible.”

Dr Thomas said that the report calls for more additional gas than the Opposition has committed to, however it is the balance of gas generation and storage that is critical to the calculation.

“The CME report has modelled less storage and more gas generation than my policy, but the principles and the conclusions are the same” Dr Thomas said.