Alinta says Port August coal to shut by 2030, but it has no plan B

The owner of two ageing coal-fired power stations in Port Augusta, South Australia, has confirmed that the heavy polluting facilities will be shut down by 2030, with no plans yet to replace them.

In its annual presentation to the Port Augusta council, Alinta Energy told an audience packed with concerned residents that the Northern coal-fired power station would “absolutely be closed” within 15 years.

But the company – which has claimed to contribute up to 16 per cent of the city’s economy – also conceded that it did not have a back-up plan for what might replace the coal plant.

In Port Augusta, residents and local government members have been campaigning for the development of a solar thermal power station in place of the coal plants – a proposal that has been dogged by indecision, uncertainty and funding woes.

In January 2014, ARENA finally agreed with Alinta to co-fund a feasibility study into the development of a solar thermal power station to augment or replace the existing coal-fired generators, the results of which are not expected until 2016.

Earlier this month, however, Alinta issued an update saying “robust” investigation into specific technology and site options had found that “even under optimistic capital cost and operating cost assumptions there is a significant funding gap preventing solar thermal generation from being economically viable at this time.”

But Australian health advocacy group Doctors for the Environment argue that Alinta’s calculations on solar thermal have not factored in the reduced health costs – or added health benefits – that would accompany the switch from coal to solar thermal.

The group cites studies showing that children in Port Augusta had the highest incidence of respiratory complaints when compared to similar towns elsewhere in SA, and Port Augusta also had nearly double the incidence of lung cancer when compared to the state average.

In a series of questions to be posed to Alinta on Thursday, the DEA also questions whether the positive flow-on effects of jobs and manufacturing and tax revenue income had been considered by the company; and whether the modelling has taken into account the cost of coal and gas in the future.

They will also ask how committed Alinta is to building the solar thermal plant if the government did provide $150 million support.

Local renewables action group, Repower Port Augusta, says confirmation of the plant’s closure reinforces the need for a new way forward.

“We’ve heard from the horse’s mouth that Port Augusta has at maximum only 15 years to make a transition from coal to solar thermal happen,” said Repower spokesperson Lisa Lumsden.

“We need the state government to step in now and support Alinta to make a clear transition plan for this community and the workers at the power station to solar thermal”.

“If we don’t act and the coal station is closed without a replacement there will be a serious hole left to fill in Port Augusta. After providing power to the state for decades our community deserves to have a serious plan for what’s next,” she said.

“We have the opportunity now to forge a long-term future for our city. Alinta must commit to completing a thorough feasibility study and the State Government needs to put forward a funded policy to support a transition to solar thermal in Port Augusta.

“Our community is putting our hand up, we’re prepared to work to make a transition to solar thermal happen but we need the State Government and Alinta to take the future of our community as seriously as we do.”