An unpublished report from former Energy Minister claiming Synergy’s Muja Power Station will close by 2025 due to the high level of renewable energy has been rejected by Synergy.
A Synergy spokesperson said they had “no plans” to close Muja within the six year time-frame.
“Synergy has no plans to retire all of Muja Power Station by 2025. Current market conditions do not support a requirement for a wholesale closure of a major generation asset within that time-frame,” they said.
Synergy has no plans to retire all of Muja Power Station by 2025. Current market conditions do not support a requirement for a wholesale closure of a major generation asset within that time-frame
- A Synergy spokesperson
The draft report was prepared by the State Government’s former Energy Minister Mike Nahan three years ago which was looking into modeling the cost effects of a 50 percent renewable energy target in Western Australia.
Despite the report’s findings re-surfacing in another media publication, the report has dismissed as out of date.
Minister for Energy Bill Johnston said he had not seen the report and was advised by Synergy that they hadn't seen the report either.
“There was no question when Mike Nahan ran the energy system in WA he was concentrated on the past and not getting ready for the future,” he said.
The energy sector is changing rapidly and a report that’s more than two years old would be irrelevant in forming 21st century policy.
- Minister for Energy Bill Johnston
“The energy sector is changing rapidly and a report that’s more than two years old would be irrelevant in forming 21st century policy.”
Collie-Preston MLA Mick Murray said finally the Liberal’s plan, formulated by Mike Nahan, has been exposed to the public.
“The people of Collie are rightfully appalled that the Liberals had a closure plan for the power station before they had even considered a survival plan for the town,” he said.
“While the closure of the power stations is still a long way off, the Labor party has started a process, with a significant funding commitment, that will ensure Collie has a viable future in the long-term that includes coal.
“I ask the people of Collie to embrace this process moving forward and help shape the future of their town.
While the closure of the power stations is still a long way off, the Labor party has started a process, with a significant funding commitment, that will ensure Collie has a viable future in the long-term that includes coal.
- Collie-Preston MLA Mick Murray
“While rooftop solar does compete with local energy production, the state-wide grid will always need base load power.”
A Synergy spokesperson said the current generation capacity at Muja stands at 868 megawatts.
“Any changes to Synergy’s generation mix will be assessed based on the economic and generation requirements that best meet Western Australia’s energy needs and will include liaison with the State Government and key stakeholders,” they said.
Australian Manufacturing Workers’ Union state secretary Steve McCartney said by looking at the economics of the coal industry in Collie, he believes there’s roughly between 10 and 15 years left.
“We saw how much damage happened around car manufacturing and how they shut everything down without having a real plan. They leave it to the last minute to release their skills because they want to make money up until the last minute and then there’s a four year transition when nobody makes money and the local area gets bashed,” he said.
"One thing about car manufacturing is when all the pressure came around there was less and less jobs for apprentices and the same thing is going to happen to coal.
“So the only way we can do that is to provide those jobs through lithium, and through Picton and we can create real jobs for these guys in the South West.”
The Shire of Collie council unanimously moved two motions at the latest meeting on Tuesday night, February 12, put forward by councillor John Piavanini to garner support and push a positive message about Collie.
Motion one, will see the Shire of Collie seek the support of the coal mining companies, combined Mining Unions and Collie Chamber of Commerce to lobby the state government, to commit to retaining coal-fired power stations until the existing State Government coal supply contracts expire in 2030 and 2040 at the earliest.
Councillor Ian Miffling said if the motion can be supported by the state government and a definitive statement along those lines was made it gives certainty to Collie and that the town was not down on its knees.
Motion two, will see the Shire of Collie seek financial support from the coal mining companies, combined Mining Unions and Collie Chamber of Commerce to fund advertisements to appear in state and local newspaper outlets, as soon as possible, pointing out that the demise of the coal mining industry is not imminent as portrayed in recent media coverage.
Councillor Joe Italiano said Collie has two coal mines and one doesn’t supply the state government, and the message out there was both are in the firing line, when the reality was only one of them were.
He also added both companies have private contracts to meet regardless of what the state government does.
