No excuse for power plant wait

THE provision of affordable electricity, like the supply of cheap water, is a critical ingredient for economic development and jobs in North Queensland.

For many years – after the closure of power stations in Townsville and Collinsville – the North has been beholden to high-priced electricity produced more than 700km away by coal-fired generators in Rockhampton and Gladstone.

We are being penalised by higher electricity costs because of energy losses that are calculated to occur when you transmit electricity over long distances.

Pricing mechanisms favour southern Queensland, particularly Brisbane, and encourage industries to establish close to generators.

The State Government subsidises electricity costs for residential and small business users in regional Queensland by contributing some $500 million or more annually to its retailer Ergon Energy to try to keep retail prices around those of

South East Queensland.

The solution to this long-running disadvantage is generation in North Queensland. So the report today that the connection of a $160 million renewable energy project at Hughenden has been delayed is concerning, particularly when construction of the plant was completed some six months ago.

National regulator the Australian Energy Market Operator says their focus is on the stability of new generation and its safe integration into the broader power transmission system. This is understandable. We don’t want the kind of power blackouts which have happened in South Australia occurring here.

It is understandable too that detailed technical assessments are needed for generators that establish in regions remote from existing generation, load centres and power transmission infrastructure.

But delays of six months or more to connect new plants is not good enough.

It discourages investment and keeps already expensive power prices high.