Ageing Infrastructure Leads to Closure of Australia's Coal-Fired Power Stations

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Researched by Industrial Info Resources Australia (Perth, Australia)--The ageing infrastructure of Australia's fossil-fuel power plants, along with falling wholesale electricity prices, have increased the operating costs of its coal-fired power stations, forcing plant operators to look for alternatives. Despite support from the federal government, Australia is unlikely to build any new coal-fired power stations in the near future because of tumbling prices for renewable energy, and rising costs of emission-intensive fuels.

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While a few electricity-generating companies are looking at replacing fossil-fuelled power stations with cheaper options, some others already have announced the closure of their power plants.

Synergy (Perth, Australia) recently announced that it will close its Kwinana coal-fired power station by the second quarter of 2015, with the final closure of the last two units in April of that year. The two units have a peak capacity of 400 megawatts (MW).

Synergy decided to close the units, as the costs associated with rebuilding them would be higher than building new renewable energy power stations.

Energy Australia Pty Limited (Victoria, Australia) also ceased generation at its 1,000-MW Wallerawang coal-fired power plant in New South Wales, following the closure of the second 500-MW unit in March. The first 500-MW unit was shuttered last year.

However, the federal government's Renewable Energy Target (RET) review announcement, which is due soon, could change the entire scenario of the Australian electricity market by giving an advantage to the fossil-fuel industry over the renewable energy sector.

Industrial Info is tracking 80 active non-renewable power projects in Australia, most of which are attached to remote mines and natural gas production plants in Australia. The majority of these power plants will be fuelled by diesel.

Currently, there are more than 150 fossil-fuel power stations operating in Australia, with a total capacity exceeding 45,000 MW. The majority of these plants are fuelled by coal, as natural gas and diesel.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.