Renewable power projects with nearly seven times the capacity of a proposed new Commonwealth-built gas power plant in the Hunter Valley have applied for access to the energy grid in the New England.
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A renewable energy group said the oversubscribed auction for access to the grid shows the Prime Minister's proposed new gas plant wasn't needed.
Some 23 projects have applied for grid access through TransGrid Service's billion-dollar New England Transmission Infrastructure upgrade, the company revealed on Wednesday.
The project would host up to 1,400 megawatts of capacity.
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"It demonstrates a healthy appetite to invest in renewable energy generation where enabling infrastructure services can be delivered," he said.
Prime Minister Scott Morrison on Tuesday announced the Commonwealth would consider constructing their own 1000 megawatt gas-fired power plant in the Hunter valley if the private sector wouldn't.
He said without the new Hunter project replacing the old Liddel coal-fired power station when it closes in 2023, power prices could rise by as much as 30 per cent.
But Australian Wind Alliance National Coordinator Andrew Bray said the announcement by TransGrid rebuts the government's case for a new gas power plant.
"Yeah absolutely it does. There's no question that new renewable plant will step in where coal closures occur," he said.
Mr Bray said government should instead look to spend on new grid capacity and clear a bottleneck in the way of new renewable projects in the region.
"The last time [the Australian Energy Market Operator] checked on the need for dispatchable capacity they found there was something like 100 megawatts needing to be supplied in the medium-term.
"And here we've got over 6000 megawatts of capacity to go in. It really was an idle threat from the Federal government.
"Liddell's closure will pose no problems for the resilience of the NSW grid. With this extra transmission allowing new wind, solar and batteries, pumped hydro, to come on board that will easily fix the problem."
The grid upgrade alone is anticipated to create 2000 construction jobs and 150 ongoing operational roles.
A number of prospective renewable power plants had been shortlisted to advance to the request for capacity stage, which was expected to be released in November.
In April, TransGrid announced it would spend $217 million upgrading the interconnector between NSW and Queensland. The massive upgrade was approved by the Australian Energy Regulator on the basis that it would drive down prices.
Andrew Messenger
Politics, environment and energy journalist at the Northern Daily Leader. I also write about health, bushfires and occasionally music. I'm a Brisbane boy by way of Charleville and Hobart who now lives in in beautiful New England. Get me at andrew.messenger@austcommunitymedia.com.au
Politics, environment and energy journalist at the Northern Daily Leader. I also write about health, bushfires and occasionally music. I'm a Brisbane boy by way of Charleville and Hobart who now lives in in beautiful New England. Get me at andrew.messenger@austcommunitymedia.com.au
