Nearly 40 per cent of Australia’s coal-fired generation capacity will shut down by 2030, including the equivalent of three medium-sized power plants closing earlier than planned, under the greenhouse gas emission cuts promised by both major parties.
Labor and the federal government are proposing a massive expansion of renewable energy to cut pollution from electricity generation, which accounts for about 30 per cent of Australia’s emissions.
Federal government modelling, produced by the Energy Department, assumes coal-fired power generation in the electricity grid will drop from its current capacity of 25 gigawatts to 14 gigawatts by 2030 – 5 gigawatts more than the market operator has planned for.
Institute of Energy Economics and Financial Analysis (IEEFA) examined what would happen if the coal plants with the earliest closure dates shut early, in line with the federal government’s projections.
“With the federal government indicating that 5 gigawatts of coal will exit earlier than expected by AEMO’s schedule, it is key that the government starts planning for these exits and puts in place mechanisms to support communities and workers,” Bowyer said.