Energy Transition Shouldn’t Be A Shock
Emily Wood | March 10, 2021
Today’s announcement by Energy Australia that they intend to retire the Yallourn power station by mid 2028 should not be a shock but does highlight the need for a well-coordinated approach to the transition of our energy system.
“This announcement was inevitable, as future announcements of power station retirements will be,” said Energy Users’ Association of Australia (EUAA) Chief Executive Officer, Andrew Richards.
“Energy Australia have done the right thing and given the market ample time to prepare, so there should be no excuse for sudden shocks to the system in 2028,” added Mr Richards.
The energy market saw significant price increases when the Victorian based Hazelwood power station closed in 2017. Since this time significant effort has been made by governments, regulators and the energy industry to prepare for these inevitable closures and to avoid the negative impacts of the past.
“The gradual closure of thermal capacity is well understood so we would be extremely disappointed to see similar wholesale price impacts that we saw when Hazelwood closed in 2017.”
“It is also important that generators that are replacing power stations like Yallourn have an obligation to deliver energy and services that are fit for purpose and do no harm to the reliability and stability of the energy system.”
There are many aspects of the energy transition that need careful thought and planning. Often, local communities are not given due consideration but it is these people who will experience the transition happening in their back yards and in their daily lives.
“As part of today’s announcement, we are pleased to see Energy Australia proposing a transition pathway for both power system security and local communities,” said Mr Richards. “We hope this sets an example that others follow.”
The EUAA is the peak body representing Australian industrial and commercial energy users. Our membership covers a broad cross section of the Australian economy including significant retail, manufacturing and materials processing industries.
Combined our members employ over one million Australians, pay annual energy bills in the many billions of dollars and support the development of a lasting national energy and climate change plan that puts downward pressure on electricity and gas costs.
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Media Contact: Emily Wood 0421 042 121