Joint press conference with Penny Sharpe, NSW Minister For Climate Change and Energy at Lithgow, NSW

SUE ELLIOTT, ENERGYAUSTRALIA EXECUTIVE OPERATIONS AND PROJECTS: Firstly, I’d just like to thank Minister Bowen, Minister Sharpe, Senator O’Neill and Ms Templeton MP (sic.) for coming and visiting us at Mount Piper here today. Mount Piper is New South Wales’ newest and most flexible coal-fired power station. It’s a great example of the energy transition in motion. Traditionally Mount Piper has been a full-load, continuous load power station, and today it’s becoming much more flexible. It now operates during the day and seasonally depending on renewable availability in the market. Mount Piper has a critical role to play in supporting the transition backing up renewables whilst we await the delivery and readiness of storage assets and transmission assets in the new energy system.

EnergyAustralia is very committed to the Lithgow community and we are progressing two key opportunities here to repurpose our existing infrastructure and make use of existing assets. We are progressing planning for a Lake Lyell Pumped Hydro Project and we would like to thank Minister Sharpe and her team for the critical state significant infrastructure declaration last week.

We see that pumped hydro has a really important and unique role to play in the new energy system and, as such, we believe that specific government support mechanisms are required to underpin pumped hydro projects.

We’re also planning a 500 megawatt, four hour Mount Piper Battery Energy Storage System right here on site to take advantage of transmission assets, and we look forward to continuing to work with government on bringing that to fruition.

EnergyAustralia also believes that gas-fired power stations play a key role in firming renewables – a renewable system. And we’re very proud that last month we commissioned and put into commercial operation our Tallawarra B gas-fired power station. And that’s already being used in times of peak demand to moderate prices for customers.

As Australia enters into the transformation of its energy system, arguably one of the biggest engineering projects ever undertaken in this nation, EnergyAustralia believes that working closely with government and industry is critical to create the energy – investment certainty required to deliver these assets. Opportunities like today where industry, government and community come together are paramount to bring that to fruition.

I’d now like to hand over to Minister Bowen.

CHRIS BOWEN, MINISTER FOR CLIMATE CHANGE AND ENERGY: Thanks very much for having us here today. It’s great to be back in Lithgow. And I’m here today with my friends Minister Penny Sharpe, Senator Deb O’Neill and Susan Templeman, the member for Macquarie, because regions like this are central to our renewable energy future, central to Australia’s economic future.

Yesterday I was in Port Augusta in South Australia, tomorrow I’ll be in central Queensland. And these are all regions which are seeing massive investments in renewable energy and the future, and all regions which have hosted coal-fired power stations in the past or do currently now as well. And the regions that have powered Australia for so long will be the regions that power us into the future.

So today, as Sue said, we’ve heard about EnergyAustralia’s plans for a big battery here on this site, what they’re doing to assist in our transition by making this coal-fired power station as flexible as it possibly can be. And that’s work that we very much welcome.

And what locals have said to me today is that they need investment now – not in 30 or 40 years’ time, but today. And we agree. Now, others have different plans for this region. I’m not sure if Mr Dutton and Mr O’Brien have been here yet, but they have a plan for nuclear power, which is at least 30 years away. They admit 2035 at its earliest; even that is wildly ambitious and optimistic and unrealistic. But that doesn’t fix the problems today. It doesn’t create jobs today. It doesn’t create investment today and, indeed, it will chill investment. It will stop people investing in the alternative plans because of the investor uncertainty created by having a nuclear plan, which is never going to happen – it’s a fantasy. But as government policy it will chill and stop investment and create uncertainty and stop people employing in regions like this.

So I’m delighted to be here listening, taking on board feedback and ideas as Penny and I have just done for the local community, and as I’ll continue to do for the rest of the day at various meetings. Listening to the community, taking on board feedback and working with communities on this energy transition.

I’m going to ask Penny to add a few remarks and then we’ll take questions.

PENNY SHARPE, NSW MINISTER FOR CLIMATE CHANGE AND ENERGY: I just want to thank particularly the workers at this power plant who have been powering New South Wales and Australia for a very long time. And there is so much more to be done, and they’re already living the transition. It’s really exciting to be with Sue and the team today as they took us around and just showed us all of the various issues that are coming to the forefront.

But the point here is that the transition is underway and in New South Wales we have a really clear plan to transition our electricity system, working to carefully manage the exit of coal-fired power over time, working with things like putting in batteries, supporting, you know, local communities to put solar and batteries in their homes as well. We’re doing all of it at the same time and we’re able to do that in partnership with the workforce, with the companies that are doing this, and particularly with the community.

I really just wanted to thank the community for coming – from Lithgow for coming and talking to us today. It’s really clear what they want. They want good, secure jobs in this community. They see the potential that’s here. They see the opportunities that the transition brings, and they want to make sure that they have a piece of the action. And we’re determined to make sure that they do. And I just really want to look forward to the continuing work that we’re doing to make sure that Lithgow and surrounds has a future, that we’re actually setting New South Wales up for a prosperous future based on clean energy. And as the Climate Change Minister, making sure that we’re getting our emissions down so that we’re dealing with climate change in a responsible, careful way where the opportunities for this economic transformation are in places like Lithgow.

CHRIS BOWEN: Over to you, folks.

JOURNALIST: What’s Labor’s long-term plan, though? I mean, this power station is set to close. You said you just had a community session. What were some of the things that were discussed?

CHRIS BOWEN: Things that are also raised with me in other communities right around where there’s coal-fired power stations – this particular power station is not scheduled to close until 2040 at this point. But we need to plan now, and that’s exactly what we’re doing. Working with Energy Australia on things like their big battery plan. Our Net Zero Economy Agency is entirely focused on creating jobs in place just like Lithgow. That’s why we set it up. It’s a creation of the Albanese Government. It didn’t exist two years ago. Now exists for the sole purpose – the very sole purpose – of bringing investment to regions like Lithgow. And as it’s up and running and working with council, working with the state government, it will be focused on regions like this.

And the Capacity Investment Scheme which will roll out 32 gigawatts of renewable energy across Australia. That will be in regional Australia and it will be creating jobs as it goes. One of the key criteria we have in considering bids in the Capacity Investment Scheme is community benefit, job creation, local content, community engagement in places like Lithgow.

JOURNALIST: Is this not just a reaction, though, to Peter Dutton’s announcement? I mean you haven’t been –

CHRIS BOWEN: Which?

JOURNALIST: Peter Dutton’s announcing that Mount Piper –

CHRIS BOWEN: Yeah, but is what a reaction?

JOURNALIST: – might be a proposed site.

CHRIS BOWEN: Is what a reaction?

JOURNALIST: Is this a reaction to it? You haven’t been out here until now, weeks after Peter Dutton just made an announcement.

CHRIS BOWEN: I spend a lot of time in regional Australia. I am in sites where Mr Dutton is promising a nuclear plant, and it’s a matter for him that he hasn’t been here. Or Mr O’Brien. If he’s been here, he’s kept it pretty quiet. They can announce their plans to visit the places they’re proposing nuclear power plants and what consultation they’re planning. I spend a lot of time in regional Australia. The things I just talked about – the Capacity Investment Scheme has been government policy for more than a year. The Net Zero Economy Agency I announced more than a year ago. These things are not a reaction to a fantasy; they are good government getting on with the job.

JOURNALIST: There hadn’t been any formal announcement, though, that Mount Piper might be one of the sites.

CHRIS BOWEN: The Net Zero Economy Agency has always been focused on coal-fired power stations. That’s been its job. That’s what we have in the legislation. That legislation was introduced before Mr Dutton’s announcement.

JOURNALIST: Okay, so far what has that Net Zero Economy Agency come up with for Lithgow? If it’s been in place for a year, where is it up to?

CHRIS BOWEN: It hasn’t been in place for a year; the legislation is currently before the Parliament. A chair has been appointed, Iain Ross. They are currently consulting across communities on investment opportunities. We want to legislate to give them powers to work with the redundancy options for coal-fired power stations that are closing particularly imminently, ones that are scheduled for closure much earlier than this one. And they are looking at the timeline of closures – here, as I said, 2040. In other places much earlier. And they are focused on creating the jobs, to replace the jobs as they go out.

Anything else?

JOURNALIST: Yes. Gas has been listed as a phase-down sector in a consultation report from the Australian Sustainable Finance Institute. Does the Government plan to reduce the role of gas in its renewables transition plans?

CHRIS BOWEN: Well, I’d say two things. Firstly, the plan is, as you said, is a draft. It’s a consultation report, so that’s what consultation is – it’s out for a draft by the institute you referred to, working with the Treasury. Our position on gas is crystal clear – it has a role to play. We agree, it’s got a firming and peaking role to play. It is not the answer to all our problems as the previous government thought. It is not evil as the Greens say. It has a role to play to firm and support renewables. As we get to 82 per cent renewables, it will play a supporting role, particularly as its very flexible and can be turned on and off at very short notice in a gas-fired peaker. It also has a role to play in industries waiting for green hydrogen. We’re investing big time in green hydrogen. It’s not ready yet. You don’t make cement, plastics, steel, fertilisers without gas, and 5 million homes are heated by gas, particularly in Melbourne and Canberra. So gas has a role to play.

If you look at the ISP, it outlines that gas capacity is scheduled to go up and gas dispatch will go down. That makes sense when you think about it’s being an essential underpinning that will be turned on only when necessary to ensure a reliable grid with 82 per cent renewables.

JOURNALIST: What about the Lithgow community? I mean, have you spoken to them at all? Are you sensing that they are leaning towards nuclear ever since Peter Dutton’s announcement?

CHRIS BOWEN: I’ve been in meetings this morning; I’ve got more meetings this afternoon with the Lithgow community. I don’t want to speak for people, but the very strong message to me was investment now, not 30 years’ time. A nuclear plant can’t be up and running in five years or 10 years’ time. It just can’t be. They don’t even pretend it will be up and running before 2035. They do pretend it will be up in running in 2035, which is a lie. But they don’t even pretend it’s got any future, any job creation now or in 2026 or 2028 or 2030 or 2031. None of it. They haven’t said which one will be up and running in 2035. They’ve said there’s seven sites, of which Lithgow is one. Two will be up and running early, two will be small modular reactors. They can’t tell you which ones will be which. They can’t tell you which one will be operating when. They can’t tell you how much it will cost. They can’t tell you how many gigawatts it will create. They can’t tell you anything. It’s not a policy; it’s a post-it note.

JOURNALIST: Because this site is owned by EnergyAustralia, would the Government of the day have to purchase the site?

CHRIS BOWEN: Yes. Because –

JOURNALIST: What’s the process for that?

CHRIS BOWEN: Well, I’m not here to explain Mr Dutton’s policy, but he –

JOURNALIST: I’m asking about yours.

CHRIS BOWEN: Well, we don’t have a policy to purchase and create a nuclear power station. So it’s Mr Dutton’s policy to enforce nuclear power stations. He has said, regardless of whether the state law allows it – New South Wales law doesn’t allow it, and it’s a bipartisan position in New South Wales – he’s said, “Bad luck. We’ll come in and override you.” Of the sites, six out of the seven sites the owners have said, “We want nothing to do with nuclear.” He said, “Bad luck. I’ll compulsorily acquire it.” It’s up to him to explain how and why and when. But these are the questions – a fair question for Mr Dutton: will you acquire a site and force a government-owned power – because this is government owned. He’s said they’ll be government-owned. But the sites he’s picked are privately owned. How does he close that circle? I’ve got no idea. Up to him to explain.

JOURNALIST: There are groups like NSW Farmers that say a nuclear power plant is actually a better use of land for energy as opposed to renewables which have a bigger footprint and the associated infrastructure, like transmission lines that would go through farmland. What’s your response to those concerns?

CHRIS BOWEN: Well, my response to that is how much space you need is a legitimate concern. Now, New South Wales’s Agriculture Minister has said 0.1 per cent of agricultural land is required for renewable energy – 0.1 per cent. These are matters that get sorted through with the appropriate planning approvals. And also nuclear uses a lot of water and farmers need a lot of water. So there’s a whole lot of issues that I think organisations can consider when they are thinking about what form of energy that they support in the future.

JOURNALIST: This is also going to come down – not the whole thing, but this is also going to be dependent on who wins the election next year. Is Labor planning to go full term? Will there be an early election at all?

CHRIS BOWEN: Well, our Prime Minister sets the election date and he’s not here today. But I would imagine that we have some way to go before we are in election mode. Okay? Thank you.

JOURNALIST: Minister Sharpe, do you mind if I ask you some questions?

PENNY SHARPE: Sure. Not about this, I assume?

JOURNALIST: Not about this, no.

PENNY SHARPE: Okay. Good.

JOURNALIST: Can you just step back from there a tiny bit? Perfect.

CHRIS BOWEN: [Indistinct].

JOURNALIST: All right. It’s koala-related, everyone. So, sorry it’s not –

PENNY SHARPE: That’s okay.

JOURNALIST: So, the koala has been nominated to be included under the species at risk of serious and irreversible impact status. Given your government has concluded without action the state’s koala population would be extinct in 2050, would you support the nomination and list the koalas under this status?

PENNY SHARPE: Look, we know the koalas are in a dire position in New South Wales. They are on track to be extinct in the wild by 2050. Everyone agrees with that, all of us are concerned about it. That’s why we’re doing a range of different things to actually save koalas in the wild. We’re creating new national parks. We’re redoing our koala strategy. When the government was elected last year we added another $170 million to the plan to save koalas. That’s on top of the $190 million already there. So, we’re doing all of those things, we look at all of those options. And if there’s a process in terms of listing, we will always look at it.

JOURNALIST: Currently before the state’s Planning Department is an expansion proposal by the Moolarben coal mine near Mudgee that would see more than 110 hectares of koala habitat cleared. The mine’s own assessment has found that more than 20 koalas within the area would undoubtedly be impacted by this. Do you think that project should go ahead given the declines we’ve seen in koala populations?

PENNY SHARPE: Well, look, we’re concerned about all of that. That’s what our planning process goes through. Obviously independent agencies like the EPA put input into that. They have something to say about that, also my own department through that process. I’m not in a position to say yay or nay about those projects, but what I do expect is for there to be a thorough and proper process for us to understand all of the impacts and to deal with any impacts if they’re there.

JOURNALIST: Anyone else?

CHRIS BOWEN: Sounds like a wrap to me.