Origin favours renewables, but what about its workers?

February 23, 2022
Issue 
Eraring power station will close a little earlier than planned due to the drop in coal prices.

Origin Energy鈥檚 decision on February 17 to close Eraring power station in 2025, 3.5 years earlier than planned, has generated fury from the federal energy minister Angus Taylor who told ABC Radio National he had not been warned.

But four years ago, CEO Frank Calabria said Origin would听听in line with the Paris Agreement and that Eraring, its only coal-fired station, would drive such a reduction.

Eraring, located on the western shore of Lake Macquarie, is New South Wales largest coal-fired power plant. It supplies nearly one quarter of NSW鈥檚 total power听and emits about 听

Closing the power station, which takes coal from five mines in region, will lead to a significant reduction in greenhouse gas emissions with consequent health benefits to surrounding communities. Coal-fired power stations account for about one third of Australia鈥檚 emissions.

Calabria argued the decision reflected the company鈥檚 rapid transition to cleaner sources of energy, even through Origin听听in Queensland.

Origin鈥檚 decision did not take Energy NSW by surprise: the听听has 87 renewable energy projects, worth more than $100 billion, registered for the Hunter Valley region. These may produce up to 104 gigawatts (GW) of energy听a year. By contrast, Eraring produces听2.9 GW.

Over the next few years, more coal-fired power stations will be closing. Bayswater Power Station in Muswellbrook, once owned by the NSW government and sold to AGL in 2015, produces 2.7 GW and is closing in 2033 (ahead of its 2035 use-by date). The efficiency of renewable energy could force it to close earlier.

But without a federal publicly-funded plan, this change in Australia鈥檚 energy landscape increases the risk that the transition to clean energy will be chaotic, and workers and communities will be sidelined, forced to bear the brunt.

A 听on听coal power transition听at Lake Macquarie in听February听2020 discussed how any successful energy transition relied on bringing local residents, councils, industry, education providers and governments together to plan for retraining, jobs, land remediation and the management of coal ash.

An Origin spokesperson, who did not want to be identified, told 91自拍论坛 that听the company would be working on a transition plan with employees and the community.

Meanwhile calls, including from the Clean Energy Council to the Australian Industry Group, for a national plan for the transition to renewable energy are increasing.

The final federal government report on the, released in 2017, recommended that all 24 coal-fired power stations should be shut down in an orderly fashion. Coalition Senators, however, objected 鈥渢o the ideologically driven conclusions which are counter to the government鈥檚 technology agnostic policy approach鈥.

The federal government is out of step with public opinion and market realities.听Tomago Aluminium, for example, which is Australia鈥檚 biggest power consumer, is planning for a mainly renewable energy supply by 2029. The global market for coal is likely to shrink, with听听planning to achieve net-zero greenhouse gas emissions by 2050.

In the absence of a federal energy policy, states are taking initiatives. The is planning five Renewable Energy Zones 鈥 in the central-west Orana, New England, south-west, Hunter-Central Coast and Illawarra regions 鈥 with accompanying transmission infrastructure.

It is estimated that renewable energy will create thousands of jobs over the next decade. A听,听titled 鈥淩enewable Energy Employment in Australia,鈥澨齠ound that more people are employed in that sector than in domestic coal. It also found that by 2035, around 75% of renewable energy job opportunities could be in regional and rural Australia.

Beyond Zero Emissions has applauded the听NSW government鈥檚 decision to invest听$550 million in听renewable energy, clean manufacturing and transmission infrastructure in the Hunter Valley, describing it as a 鈥渂illion-dollar opportunity for the state鈥.

NSW treasurer Matt Kean said the government will support 鈥渦p to 3700 jobs鈥 following the closure of Eraring coal power station. But BZE鈥檚 research shows that with greater investment, a Hunter Renewable Energy Industrial Precinct could support 34,000 jobs and generate $11 billion in annual revenue by 2032.

Eraring鈥檚 closure adds impetus to the call by the , a community campaign involving unions and environmentalists, for the government to lead a plan for sustainable jobs and for programs to help workers transition into new, well-paid听jobs.

[Niko Leka is running for the .]

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