- Hazelwood Power Station
Fact is that Hazelwood Power Station built in 1964 is old, needed a major refurbishment to make it more efficient and owners estimated that at least $400 million was needed to bring it to safety standards. Remember that in the SECV plans it was due for decommissioning in early 2000’s. Engie the French owners also stated that it was their policy of now investing solely in low-carbon and renewable energy that drove the decision, but lower energy prices meant that they could not produce profitably. as oversupply within Victoria. It was an economic decision made by the private owner.
- Whyalla & Port Augusta Power Plants
This is even a more interesting example. Again the private owners made an economic decision. Their coal mine at Leigh Creek, which supplied most of the power Plant coal to Port Augusta was exhausted and it closed. trainloads of coal were tracked to both power stations at great cost from Victoria and elsewhere, adding to the cost pressures.
The technology both plants was older than Hazelwood, inefficient and did not meet both safety and environmental standards. Hence the cost structures were high and could not complete in the market, It was replaced by gas-fired plans and a new large solar facility is being built. Job losses from the BHP and other steelworks closures had everything to do with the price of steel imports and nothing to do with this power plant.
In fact the new owner of the Whyalla Steelworks is planning a gas-fired plant, supplemented by solar to also service all the surrounding areas.
- Alcoa Geelong
Alcoa saga is much more complicated, and while it has a lot to do with politics, at the end of it all it again was an economic decision by a private owner.
This plant was built in 1960 and started in 1962; and I first saw it when I sold them some equipment in the early 1970’s. While it was “state-of-the-art” over 50 years ago, it is used technology that is now redundant and new plants uses less than 40% of the electricity needed at Geelong. The politics were about the deal the Victorian Governments did to sell very cheap power to Alcoa on very long term contracts in order for the product to be produced at the right price. It was good politics, as it bought jobs and export earnings, and the SECV controlled all the power and used the Alcoa consumption at Port Henry and Portland as the base load for the large generation system it had built in the Latrobe Valley to supplement the supply from Anglesea.
The ■■■■■-fight started once Kennett sold our power generation and supply to private owners, as they were not happy to be supplying at such a low cost and while it was part of the purchase deal were always going to fight it. In any case the whole Geelong Plant needed to be re-built and it is cheaper to ship bauxite from the top of Australia to new modern aluminium plants in Asia in any case. In the end it was a pure economic decision and had nothing to do with any renewables or climate change.
So EssTrip, you can bluster and posture all you like, but in a free market capitalist economy, share-holder return will win out. All these decisions were made to make more money.
Where I blame Government of all shades, is that they did not do enough over the past fifty years to ensure that all industry was more competitive, forcing them to adhere to environmental, safety and community standards; and making sure that our economy was technology driven. The car industry is a great example of how to fark Industry Policy, starting way back with John Button and ending with Tony Abbott.