Energy and Emissions Reduction Minister Angus Taylor said Kurri Kurri would be laid off at the end of 2023 to fill a 1,000 megawatt demand gap that would open with the closure of the AGL coal plant at Liddell.
Alex Wonhas, head of system design for the Australian Energy Market Operator, said the additional distribution capacity was a welcome addition to the market, but his agency did not take a position on the type of generation he either gas-fired or batteries powered by renewable energies, was preferable.
“If you expect gas prices to rise in the future and battery costs to fall, the future is really dominated by batteries,” Dr Wonhas said in May. “If you believe in very low gas prices and maybe battery costs aren’t going down, then you’ll see more gas in the mix.”
The Australian Energy Council, representing the country’s major electricity providers including AGL, Origin and EnergyAustralia, criticized Kurri Kurri’s investment. Managing Director Sarah McNamara said in May that the operator of the market had expected no large deficits after Liddell closed, arguing that “the private sector is struggling to make final investment decisions” when the government is stepped into the market with investments like Kurri Kurri.
Monash University principal researcher Ross Gawler modeled the operating costs of Kurri Kurri and said in July that the project would result in a loss of $ 150 million each year for 20 years, or a total of $ 3 billion. dollars, unless Snowy engages in surge pricing to sell high-cost electricity when there were grid gaps.
Mr. Broad rejected Mr. Gawler’s analysis and said that “the increase in supply will have the effect of lowering electricity prices”. The modeling was “based on a fundamental misunderstanding of our business and will not be precise or reliable,” he said.