BY EL FITCHETT
The Federal Government will build a new gas power station at Kurri Kurri if the energy sector fails to replace Liddell Coal Fired Power Station.
Prime Minister Scott Morrison visited the Hunter this morning to announce the plan, which is part of the Government's gas led economic recovery.
"Wholesale prices could jump by 30% or $20 per megawatt hour if the Station's capacity is not replaced before it shuts down," Scott Morrison said.
Planning will be underway by April 2021, to ensure the electricity generation capacity lost when the Liddell Power Station closes in 2023 can be replaced.
"We estimate that some 1000 megawatts of new dispatchable generation is needed to keep prices down," Scott Morrison said.
Hunter MP Joel Fitzgibbon is pleased by the move away from talk of extending the life of Liddell.
"Extending Liddell was never feasible, it was an election vote grabber, Joel Fitzgibbon said.
But he says a new gas power station is great news for the Hunter, and will ensure the region retains its status as a major power generator.
"This plan makes sure the Hunter remains the power house of New South Wales by replacing Liddell's capacity with pumped hydro, with gas, and of course with battery storage."
