Renewable target scrapped as CLP goes all in on ageing gas plant, and is warned of blackout risks
The new Northern Territory CLP government has officially scrapped the 50% renewables target set by the previous Labor government.
The CLP is duly being warned of the risk of blackouts if it continues to rely on the ageing gas plant that still provides the bulk of the region’s power needs.
The announcement by the newly appointed minister for energy and renewables, Gerard Maley, is unsurprising given the inability of the previous Labor government to follow its own renewable roadmap.
Maley says the renewable target has been abandoned because “it will have cost $5 billion, and put the territory’s main grid at the risk of major blackouts.”
It did not provide any context or numbers for that $5 billion claim, which analysts said appeared wildly inflated.
Experts say the plan risks blackouts if it relies on the ageing gas turbines at the Channel Island facility – where replacement parts and machines are difficult to find.
Maley says the plan includes a cap on consumer bills, to protect them from any rising costs, and also planned investment in energy infrastructure.
Interestingly, it notes that it will expand large-scale solar and battery storage “to reduce the cost of supply whilst maintaining grid stability.”
But it also cites the development of the Beetaloo gas basin – described as a ticking carbon bomb by environmental groups – “to provide an abundant and reliable source of gas".
The NT renewable transition has been something of a disaster, caused by a mixture of political hubris, a refusal to follow a sensible plan, and over-reach from regulatory authorities.
Four big solar farms were built several years ago but were not allowed to supply power into the grid because of rules imposed after their construction that required them to pair with battery storage.
They are now being allowed into the grid, but ageing gas turbines are being forced to run as “spinning reserve” – not because of solar issues, but because the privately built transmission line is not regarded as reliable.
The NT is not the first jurisdiction to see the ripping up of renewable energy targets on the return of a Coalition government.
In Queensland, the new LNP government has forced major wind projects to re-submit themselves for planning approval and announced $1.4 billion in funding for coal fired power station.