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  • 6/18/2025
Five years ago, Western Australia’s premier at the time Mark McGowan proclaimed the state would be getting out of coal by the end of the decade. Underpinning the plan was an acknowledgement the grid would continue to rely on gas-fired power as a back-up for years to come. But doubts about the feasibility of plan are growing with revelations one of the state's most important gas plants is teetering on the edge of insolvency.

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00:00The calm waters of Coburn Sound, south of Perth, belying the troubles are the landmark
00:07on its shores. New Gen Power Station in Kwinana is one of the most important electricity generators
00:13in the state, but the gas-fired plant has hit difficult times.
00:16I'm worried about New Gen, but I'm worried about the entire energy system.
00:20A shake-up of WA's wholesale power market, aimed at helping the grid to cope with the
00:25transition towards renewable energy, has taken a heavy toll. Financial disclosures
00:29by the plant's owners show New Gen has been losing money for the past two years.
00:34The ABC now understands there were warnings last year the power station risked becoming
00:39insolvent.
00:40It is running at about, oh, 15 percent of the southwest interconnect system capacity, and
00:46so it's very essential for the operation of the system.
00:51With a capacity of more than 310 megawatts, New Gen is one of the biggest power stations
00:56in WA's main grid. More delicately for the state, however, it's
00:59also the biggest private supplier of electricity to government-owned utility, Synergy. That
01:04dependence is believed to have prompted WA's former energy minister to late last year seek
01:09an extraordinary bailout of New Gen by the state.
01:12New WA Energy Minister Amber Jade Sanderson declined a request to be interviewed about
01:17New Gen's predicament. But it's understood the government rejected the idea of a bailout,
01:22and instead told Synergy to fund any lifeline out of its own pocket.
01:26I think the government made a right decision in this particular case. But having said that,
01:32what they need to focus on is more on the planning. They've been woeful in the planning
01:38of the transition.
01:39With the government planning to get out of coal by 2029, while increasing its reliance on gas,
01:45the opposition says New Gen's plight offers a cautionary tale.
01:48As the pressure comes on the government to provide the energy that's required at a cost
01:53that business and families can afford, the government is going to be under enormous pressure.
01:59And this may well be just the first step.
02:00A gas plant and its prospects, burning a little dimmer.

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