The future of coal power is dead and buried as cheaper renewables make it uneconomic for private companies to keep their ageing plants firing, the Commonwealth’s energy adviser says as it calls for urgent reforms to an energy market going through the fastest transition in the world.
Wind and solar farms, along with rooftop panels, are being built at an increasing pace and pouring more and more power into the grid. But to ensure there are no blackouts, weather-dependent renewables need dispatchable back-up supply to fill gaps in the grid. “The old coal plants will gradually not work anymore. They are commercially unviable, you can watch them struggling economically, and they’re constantly having write-downs,” she said.released by the Australian Energy Market Operator on Wednesday showed why coal plants, which have to pay for their fuel and cover running costs, are struggling to compete with wind and solar which get their fuel for free.
The potential for new gas plants is a contentious issue. The federal government is spruiking a gas-fired recovery from the coronavirus pandemic and has suggested it would build a new 750 megawatt gas plant near Newcastle.