In a key part of the Victorian Liberal energy policy, Opposition Leader Matthew Guy has promised to build a new 500 MW power station in the state if elected on November 24. Guy says the privately-owned station would power government services such as hospitals and rail networks.
According to Guy, the plan is technology-neutral, which means it could include coal, gas, hydro, wind, solar power or a combination of sources.
The main condition for the winning bid is to reliably supply 24-hours a day at the lowest possible cost. Expansion of the plant beyond 500 MW in the future may also be a possibility.
Victorian Liberal energy policy predicts bill savings
Guy announced that a tender process would determine who will build the plant.
Guy says the extra energy supply in the state will drive down retail electricity prices. He anticipates households will save around $355 a year on their energy bills.
For a business, the savings will amount to $860 and $1,720 for small and larger businesses respectively.
However it’s not clear what types of energy generation would provide these savings.
CEC urges caution on Victorian Liberal energy policy
In response to the Liberal leader’s announcement, CEC’s Chief Executive Kane Thornton says governments should “exercise caution” when designing energy programs.
Thornton says it’s important that projects work towards accelerating rather than delaying a clean energy future.
He also urges the Liberal Party to deliver on its commitment to technology neutrality in the project.
Thornton added that any fossil fuel plants should meet the Liberal Party’s requirements for clean energy projects.
Renewables are the cheapest option: CEC
According to the CEC, trends show renewable energy in combination with energy storage is the lowest cost option for power.
Accordingly, if the Victorian Liberal energy policy is determined to seek out the cheapest option for dispatchable power, it is likely to be renewable energy such as wind or solar power, coupled with energy storage batteries.
While the CEC welcomes the Victorian Liberal energy policy initiative, Thornton said that in the context of current renewable energy projects, such as large-scale wind and solar power installations, a 500 MW project is “modest”.
He described it as no substitute for a long-term energy strategy that would provide confidence to investors in Victoria.
