Government intervention in the energy market is making the breakneck transition from fossil fuels to renewables even more challenging as investors warn that taxpayer subsidies for new gas power projects are squeezing out private industry.
The NSW government on Tuesday announced $78 million to support Energy Australia building the first hydrogen-ready gas power plant at its Tallawarra site on Lake Illawarra, with the Morrison government tipping in $5 million.
The Tallawarra B plant will lie next to EnergyAustralia’s existing power station in NSW.Credit:
The Commonwealth also said it would set aside funding for its own large-scale 750-megawatt gas plant at Kurri Kurri in the Hunter Valley, which federal-owned utility Snowy Hydro said would cost at least $600 million.
AGL chief executive Graeme Hunt said the NSW government’s renewables road map and federal funding for the new gas plant through Snowy Hydro had deterred his company from investing in a new gas plant in the Hunter Valley.