In acknowledgement of the uphill battle the state faces to halve its carbon emissions by 2030, NSW Energy Minister Penny Sharpe has called for greater collective action. While the state has managed to cut emissions by 18% based on 2005 levels, its path to reaching net-zero carbon emissions by 2050 remains littered with obstacles. The ultimate goal has suffered a setback with the delay in establishing renewable energy zones in the Orana and New England regions until 2027-2028, which might increase the state’s dependence on coal.
Ms Sharpe, while testifying at budget estimates, confirmed her unwavering commitment to achieving the emission reduction targets, yet conceded that more needs to be done. She expressed hope that bipartisan support would galvanize concerted efforts across all governmental departments to combat climate change, rather than relying on her as the sole champion of this cause.
In the coming months, NSW Labor intends to codify the 2040 and 2050 emission targets and initiate an independent Net Zero Commission. This body will oversee the state’s advancement towards these goals and keep the government in check.
Meanwhile, the Finance Minister Courtney Houssos conceded that the gradual closure of coal mines and managing the state’s energy transition would not be a smooth ride. Recognizing coal mining to deliver a significant chunk of the state’s economy and electricity network, the Minister underscored the 29,000 direct jobs anchored in this industry.
As for Eraring, Australia’s largest coal-fired power station, questions loomed about its planned 2025 closure. Ms Sharpe confirmed that there are ongoing talks, but no decision yet about extending the power plant’s service. She revealed that the discussions include possible alternatives such as rolling out renewable energy sources sooner or investing in firming technology.
The minister asserted that extending the power plant’s life would not impede the state’s emission reduction targets. According to the original modelling, the reductions factored in the plant’s operation until 2032. She expressed optimism that the transition challenge could be resolved expeditiously, ensuring minimal financial burden on the taxpayers, and without causing reliability and price surge issues for consumers and businesses in NSW.
Ms Sharpe stated that the purpose of establishing the Net Zero Commission is to maintain transparency and independent oversight on tracking emissions reductions. Her final note was a reiteration of her hope the government would not need to fund a possible extension for Eraring power plant.
