ID :
204803
Thu, 09/01/2011 - 16:52
Auther :
Shortlink :
http://m.oananews.org//node/204803
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NSW needs to develop gas: Hartcher
NSW must not become too dependent on renewable energy and needs to develop the gas industry in order to meet demand, says Energy Minister Chris Hartcher.
Speaking at a Committee for Economic Development of Australia (CEDA) lunch in Sydney on Thursday, Mr Hartcher said there was "no silver energy bullet which provides the energy nirvana of low cost, zero emission, consistent electricity supply".
"We need to pursue a policy which facilitates an energy supply mix which recognises that coal is providing more than 80 per cent of our generation and while not expanding, will continue to be the primary source of generation for many decades to come," he said.
Mr Hartcher said renewables such as solar and wind were an "essential part" of the energy generation mix and would continue to be supported by the government.
But current renewable energy technology wasn't developed to a point where it could replace the 12,000 megawatts of coal fire generation that now exists in NSW.
"We must be cautious and not become over-dependent on intermittent renewable energy forms, if we intend to maintain supply to homes and businesses," Mr Hartcher said.
He referred to February 1 this year, when NSW had its highest ever peak recorded and had to import 12 per cent of its needs from Queensland and Victoria.
"It's worth considering what happens were there to be simultaneous mid-summer heatwave demands on the eastern states and what that could mean for NSW if we couldn't import from Queensland or Victoria," he said.
"Whilst contingency plans are in place, this could massively inconvenience business and families."
"We need to be cautious about over-dependence on supply from other states and facilitate, through market-based dynamics, a diverse generation mix."
The government expects gas-fired base load generation to be a major component in the NSW energy supply for the next few decades, Mr Hartcher said.
However, NSW is presently reliant on importing gas from South Australia and Victoria, where natural gas production is set to decline.
"It is prudent for NSW to develop a gas industry ... both for energy generation and for household use," he said.
"This will secure NSW against the potential price rises that come if the supply is limited."
A government gas industry development plan will ensure necessary policy frameworks are in place to support the development of all aspects of the gas industry, including increasing gas as a fuel source for electricity generation, industrial and residential uses in gas, Mr Hartcher added.
Speaking at a Committee for Economic Development of Australia (CEDA) lunch in Sydney on Thursday, Mr Hartcher said there was "no silver energy bullet which provides the energy nirvana of low cost, zero emission, consistent electricity supply".
"We need to pursue a policy which facilitates an energy supply mix which recognises that coal is providing more than 80 per cent of our generation and while not expanding, will continue to be the primary source of generation for many decades to come," he said.
Mr Hartcher said renewables such as solar and wind were an "essential part" of the energy generation mix and would continue to be supported by the government.
But current renewable energy technology wasn't developed to a point where it could replace the 12,000 megawatts of coal fire generation that now exists in NSW.
"We must be cautious and not become over-dependent on intermittent renewable energy forms, if we intend to maintain supply to homes and businesses," Mr Hartcher said.
He referred to February 1 this year, when NSW had its highest ever peak recorded and had to import 12 per cent of its needs from Queensland and Victoria.
"It's worth considering what happens were there to be simultaneous mid-summer heatwave demands on the eastern states and what that could mean for NSW if we couldn't import from Queensland or Victoria," he said.
"Whilst contingency plans are in place, this could massively inconvenience business and families."
"We need to be cautious about over-dependence on supply from other states and facilitate, through market-based dynamics, a diverse generation mix."
The government expects gas-fired base load generation to be a major component in the NSW energy supply for the next few decades, Mr Hartcher said.
However, NSW is presently reliant on importing gas from South Australia and Victoria, where natural gas production is set to decline.
"It is prudent for NSW to develop a gas industry ... both for energy generation and for household use," he said.
"This will secure NSW against the potential price rises that come if the supply is limited."
A government gas industry development plan will ensure necessary policy frameworks are in place to support the development of all aspects of the gas industry, including increasing gas as a fuel source for electricity generation, industrial and residential uses in gas, Mr Hartcher added.
