LEAN Submission to Owen Inquiry into a new NSW Coal-fired power station

LEAN and 52 ALP Branches in NSW have passed the NSW Clean Energy TREND Resolution on Reinforcing NSW Leadership on Climate Change. That resolution forms the basis of LEAN's submission to the NSW Government's Owen Inquiry.

It is imperative that NSW leadership on climate change is not undermined by building a new greenhouse gas intensive coal fired power station in NSW. Cleaner (and cheaper!) options are available, particularly in relation to improved end use energy efficiency and demand management. The Government appears to be in danger of focusing solely on the cost of generation and ignoring the associated networks costs of delivering this power costs to consumers. It is also crucial that the Government not overlook cost-effective clean energy options that are available today in favour of the possibility of viable "clean-coal" options some time in the future.

World-leading climate scientists are warning that we may now have only 10 years to avert a global climate disaster. LEAN believes that governments everywhere, including NSW, need to do much more to address what is probably the single biggest challenge facing humanity. In particular, in the context of this Inquiry, the highest priority must be placed on meeting NSW future energy needs in ways that reduce, rather than increase, this state's greenhouse gas pollution. Of course, this should be done in ways that minimise the cost to the economy, but it is no longer acceptable to the people of NSW to argue that action should be delayed just because there may be a cost involved. The costs of inaction are potentially so much greater.

While there is much analysis and refinement that could and should be undertaken, the key elements of a sustainable strategy for NSW future electricity needs are relatively simple. We believe the key steps to meet NSW electricity needs, reduce NSW greenhouse gas emissions and reinforce NSW leadership on climate change can be summarized in the following five measures:

1. Targets for greenhouse emission reduction measures
Act on the 2006 NSW ALP State Conference resolution to strengthen the Government's NSW Greenhouse Plan by:
a) Specifying how much each measure in the NSW Greenhouse Plan is expected to contribute towards meeting the NSW Government's targets of reducing the State's greenhouse gas emissions to year 2000 levels by 2025 and cutting emissions by 60 percent by 2050;
b) Monitoring progress of each measure towards these targets; and
c) Annually reporting emissions savings achieved.

2. Renewable energy to boost clean energy investment and employment in NSW
Deliver on the Government's commitment to provide 10% of the NSW's electricity consumption from renewable energy by 2010, and 15% by 2020. (This compares to NSW current level of renewable energy generation of about 6.1% .)
To maximize economic and power security benefits to NSW, the Government should ensure that this investment is either located in NSW or that NSW clean energy generation projects have reciprocal access to similar schemes in other states.

3. Efficient energy use to halve growth in energy consumption
Expand the Energy Savings Fund/Climate Change Fund to a scale sufficient to ensure that improved energy efficiency (including via measures such as BASIX) halves the forecast growth in energy consumption in NSW between now and 2020.

4. Natural Gas to fill any power gap
Use the NSW Greenhouse Gas Abatement Scheme to encourage the efficient use of natural gas as a much less greenhouse polluting alternative (compared to coal-fired electricity), for applications such as residential water heating, industrial and commercial cogeneration and, if new generation capacity is necessary, for power stations.

5. Dynamic pricing and smart meters to reduce peak demand
Reduce the need for massive network investment ("$9.1 billion over 5 years" ) and rising average electricity prices by requiring the state-owned power transmission and distribution networks to use "dynamic pricing", that is, higher prices at times of peak demand and lower prices at other times.
Require electricity distributors to provide "smart meters" on request, for no upfront charge to all consumers who want greater control over their energy bills by choosing a dynamic pricing tariff.

These measures are essential to meeting the NSW Greenhouse Emission Targets and for meeting our community's base load and peak energy needs in a sustainable way. By focusing energy investment on these innovative, cost effective and strategic investments this approach will also create jobs, stimulate new technologies and products for export, and boost the NSW economy.

Download File:
LEAN Owen Inquiry submission [ pdf ]