Queensland to be left in the dark

Warnings that Queensland could experience power shortages in two years proved the need for a carbon tax, according to the Climate Institute.

But the state government and energy provider Origin have denied the state is at risk of power shortages as argued by the Australian Energy Market Operator.

Its Electricity Statement of Opportunities report found Queensland would be the first jurisdiction in Australia to experience shortages if it failed to attract more investment in power stations.

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Climate Institute CEO John Connor said the report warned uncertainty over the carbon tax could deter or distort energy investments costing electricity consumers up to $5 billion in higher bills.

“It’s clear that the best possible outcome for electricity consumers is decisive action from our politicians to cut our carbon emissions by putting a price on carbon,” Mr Connor said.

“Without a pollution price and the clarity of the renewable energy target, investors will try and second guess government policy, make inefficient decisions or delay investment and this will increase electricity costs.

“A pollution price will be a green light for the electricity sector to get on with the job of building the infrastructure needed to provide clean energy power for Australians.”

A spokesman for electricity company Origin responded to questions with a short statement saying the company was “well placed to underpin our positions in Queensland”.

Energy Minister Stephen Robertson also said Queensland was “well placed” to have the electricity generating capacity to meet the energy demands of a fast-growing state.

‘‘Queensland is fortunate to have a number of large-scale energy project proposals that should ensure we meet energy demand in 2013-14 and beyond,’’ he said in a statement.

“These include ERM Power Ltd’s 500 megawatt Braemar 3 gas power station, Origin Energy’s 500 megawatt Darling Downs Stage 2 gas-fired project and the 44 megawatt solar thermal project at the Kogan Creek power station.’’

The Minister said the report was a vote of confidence in the strength of the Queensland economy.

The report also revealed the impact of the floods, Cyclone Yasi and reconstruction efforts on Queensland’s energy consumption.

“In Queensland, Powerlink Queensland suggests that extreme weather in early 2011 reduced mining loads, curtailed electrified rail and reduced commercial and residential loads,” the report stated.

“Demand growth projections are driven by mining activity in Central Queensland and flood-related reconstruction.”

The mining boom was eating up most of Queensland’s power supply and Australia had been slow to move to “cleaner” energy options, with power coming from the same amount of renewable energy suppliers as it was 10 years ago.

Based on medium or high economic growth, Queensland would need more investment in power generation power by 2013 to 2014.

If there was low economic growth, the state would be given a one-year reprieve before power shortages could hit.

The Australian Energy Market Operator examined Queensland power generation projects that were underway and had been promised.

It also looked at the impact of the carbon tax on these projects and power sources.

“The introduction of a carbon price, however, may result in the retirement of existing coal-fired capacity, and changes to the relative operating costs of existing and new technology, leading to opportunities for replacement generation,” the report stated.

The power generation Queensland is investing most heavily in is natural gas followed by wind, then black coal then coal seam gas.

The agency lacked the data to assess the contribution of wind energy to the Queensland’s power supply as it did in other states.

But wind and “solar thermal generation technologies have intermittent outputs, and may not contribute significantly during periods of high demand”, according to the report.

Read more: http://www.brisbanetimes.com.au/queensland/queensland-to-be-left-in-the-dark-20110831-1jkvj.html#ixzz1XS9HO8ap

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