REPLACING the Liddell coal power station with clean energy technologies would slash pollution and be at least $1.3 billion cheaper than the Turnbull government’s plan to extend the life of the NSW plant by five years, a new analysis has found.

A second report released on Monday also believes Australia has the potential to lead the world in developing large and home scale energy storage systems if public uncertainty can be overcome.

Both reports will give the COAG Energy Council food for thought when it meets in Hobart on Friday to discuss the Federal Government’s national energy guarantee.

Modelling by the UTS Institute for Sustainable Futures, commissioned for the Australian Conservation Foundation, found a clean energy package including battery storage, solar thermal and bioenergy, would have a zero pollution outcome compared to 40 million tonnes of pollution by extending Liddell.

The total cost (including capital and operating costs) for five years was estimated at $2.2 billion for the Clean Energy Package, compared to $3.6 billion for a package to extend the life of the Liddell plant, and $3.3 billion for the AGL plans to upgrade Bayswater power station for gas, wind and battery storage.

These costs do not include potential charges for carbon pollution, which would make coal and gas more expensive.



Prime Minister Malcolm Turnbull has said the most obvious solution to prevent power shortages from the planned closure of the Liddell power plant in 2022, was to keep the plant open. But the report shows there are other ways to keep the lights on.

The Clean Energy scenario involves:

• Generating 1000 megawatt of capacity through energy efficiency by introducing programs that encourage people to use less electricity through things like improving lighting, encouraging changes in behaviour and retrofitting people’s homes.

• Adding 600MW of new wind power.

• 250MW of demand response, which involves giving consumers financial incentives to reduce their electricity consumption during short periods of peak demand.

• 200MW of flexible pricing that will see electricity prices change depending on what time of day and year it is. This would encourage people to run things like pool pumps during off-peak times.

The report’s authors believe this would create a system that was just as reliable as the Liddell power plant.

The foundation’s CEO Kelly O’Shanassy said keeping Liddell open beyond 2022 would be bad for the climate and Australia’s ability to achieve its Paris targets.

She said the results show Australia’s elected representatives were holding back the country.

“Australia desperately needs a comprehensive climate change policy that will facilitate the rapid transition to a clean energy future,” Ms O’Shanassy said.

A report by the Australian Council of Learned Academies also warned that without proper planning and investment in energy storage, electricity costs in Australia will continue to rise and electricity supply will become less reliable.

The report found while the public had some awareness of energy storage, such as batteries and pumped hydro, it had very limited knowledge of other emerging technologies such as renewable hydrogen.

There was also a reluctance from consumers to install batteries at home for perceived safety reasons.

“This report clearly shows the two sides of the coin — that energy storage is an enormous opportunity for Australia, but there is work to be done to build consumer confidence,” the council’s expert working group chair Bruce Godfrey said.

“The best way to change attitudes is to increase understanding about energy storage.” Australia’s chief scientist Alan Finkel said given Australia’s natural resources and technical expertise, energy storage could represent a major new export industry for the nation.

“Energy storage is an opportunity to capitalise on our research strengths, culture of innovation and abundant natural resources,” Dr Finkel said.

“We have great advantages in the rapidly expanding field of lithium production and the emerging field of renewable hydrogen with export opportunities to Asia.”