Eraring, which supplies 20 per cent of the NSW grid, has been under intensifying pressure as the roll-out of cheaper renewables cuts wholesale electricity prices to levels where it is increasingly struggling to compete. | Nick Toscano and Mike Foley
Eraring, which supplies 20 per cent of the NSW grid, has been under intensifying pressure as the roll-out of cheaper renewables cuts wholesale electricity prices to levels where it is increasingly struggling to compete.“You take 20 per cent out of the market, you create price risk. It’s not complicated,” he said. “There are simply not enough committed projects on the table yet to fill that gap.”
Kerry Schott, an advisor to NSW Energy Minister Matt Kean and former chair of the Commonwealth’s Energy Security Board, said the capacity mechanism would be crucial as renewables continued driving down prices. For electricity bills, Dr Schott said, Eraring’s closure could be managed without causing price spikes and the only immediate upward pressure would be the cost of transmissions lines “because we need them to connect the new solar and wind [to the grid].“
“When a coal plant goes the others still operating will get a bit of a kicker for a little while, like Baysater, Mt Piper and Vales Point now after Eraring has gone.”
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