Powering on

The Kurri Kurri power project is critical to the Hunter region’s continued economic success story. By Angus Taylor.

The Hunter has long been a powerhouse of Australia’s economy. For generations it has been a key regional centre delivering resources, driving industry and manufacturing, and creating thriving communities.

This has been made possible by access to affordable and reliable power and this will continue to be a critical part of the Hunter Valley’s – and Australia’s – continued economic success story. 

Securing affordable and reliable power for consumers has always been at the front and centre of the Morrison Government’s approach to energy. Pushing prices down gives families a greater level of security and freedom to spend their hard-earned money the way they see fit.

Pushing prices down allows businesses to thrive and create new jobs for Australian workers. This is particularly important here in the Hunter, the centre for so many energy-intensive businesses, such as the Tomago Aluminium smelter.

Businesses should not have to make a tough choice between bearing the cost of surging energy prices or bearing the loss of suspending production, as we are seeing in Europe right now. 

Our Government’s track record on prices is clear. Wholesale electricity prices have fallen sharply, with prices in 2021 40 per cent lower than in 2019. 

The ACCC reports the cost of electricity has fallen to its lowest level in eight years and in the fourth quarter of 2021, household spending on electricity was nearly 10 per cent lower than the same period in 2018. 

Similarly, costs for small businesses are down 10 per cent in two years and costs for large businesses down by 12 per cent.

We have achieved this while also bringing down our emissions.

Record levels of new renewables are entering our grid. From the record low renewable share under Labor of just 7.5 per cent, renewables are now nearly 25 per cent, or one quarter of our electricity mix with one in four Australian households using rooftop solar. 

These are extraordinary achievements – but the challenges are significant.

The key is balance. Balance between intermittent forms of energy such as wind and solar and on-demand reliable power such as gas, coal and hydro.

Safeguarding this balance in our energy system is critical to ensure, that while we make the most of renewables, our grid remains affordable, stable and secure, with enough on-demand electricity to power our industries and keep the lights on in our homes and businesses.

This is why the Morrison Government has committed to deliver Snowy Hydro’s Hunter Power Project gas generator at Kurri Kurri in the Hunter Valley. 

Like the Hunter, Snowy Hydro has played a fundamental role for decades in supplying Australians with the reliable and affordable electricity supply they need. 

This role will become even more important as Snowy Hydro delivers critical projects such as the Hunter Power Project and Snowy 2.0.

The Government is supporting these projects because they stack up. They stack up for households, businesses, local regions and taxpayers.

NSW’s Liddell Power Station will close in 2023 and it is essential to fill the gap left by the closure of Liddell to ensure stability and protect consumers from price hikes. We know that if it is not adequately replaced, prices risk rising by 30 per cent in two years. This would be an unacceptable outcome.

The Government’s $600 million equity investment in the Hunter Power Project in Kurri Kurri will deliver affordable, reliable power to help replace Liddell by the end of 2023.

This is a responsible investment. A robust business case makes it clear the project will deliver a double digit return for taxpayers of 12.3 per cent.

This is an investment ready for the future, able to incorporate hydrogen once it becomes commercially viable. 

And importantly, particularly for the Hunter, this project will create up to 600 new jobs and a further 1,200 indirect jobs. 

These are real jobs and real opportunities for local business and industry in a viable, ready to go project in the Hunter.

This week marks an important milestone for the project, receiving environmental approval. This means construction on the Hunter Power Project can soon begin and jobs can start to grow. We are on track to deliver affordable, reliable power by the end of 2023.

This is a concrete, costed and commercial plan, giving life again to the site of the former Kurri Kurri aluminium smelter that was abandoned at the height of Labor’s irresponsible carbon tax, which put so much pressure on prices and the cost of living for families and businesses. 

Affordable reliable power is not a catchphrase for the Morrison Government. It is a key focus. 

It means families have more money in their hip pockets and our industries are better placed to grow. Importantly, it means more well-paying jobs for Australians. 

The Hunter Power Project at Kurri Kurri is a key part of delivering the affordable, reliable power Australians need. 

Angus Taylor is Minister for Industry, Energy and Emissions Reduction.