(EnergyAsia, March 12 2012, Monday) — Australia’s coal industry wants the New South Wales (NSW) state government to establish a clear strategy for energy generation that includes developing low emissions technology to provide certainty for industry investment and long-term government planning.

Coal-fired power, the principal source of base-load electricity in Australia’s national energy market, accounts for 89% of electricity generation in the state.

While demand for other energy feedstock such as gas, solar and wind will grow, the Federal government has found that coal will remain the largest single power source in NSW in 2035, said the Australian Coal Association (ACA).

ACA chief executive, Nikki Williams, has welcomed the NSW’s recent inquiry into the economics of energy generation as crucial for helping to set a clear direction for electricity generation.

“There are no easy solutions when it comes to meeting future electricity needs. Coal plays an important role in powering the NSW economy now and in the future,” Dr Williams said.

“We recognise the need to minimise emissions from coal and gas-fired power and that is why the coal industry is voluntarily investing A$1 billion in developing low emissions technology like carbon capture and storage. (US$1=A$0.93).

“The industry is already partnering with the NSW government to find potential carbon storage locations and we have a carbon capture project underway on the NSW Central Coast.

However, this work needs to be enhanced so that NSW can realise its potential as a leader in commercialising this technology for coal and gas. Coal Innovation NSW is well placed to drive this work.”

NSW Minerals Council chief executive, Stephen Galilee, said he welcomed the state government’s efforts to increase public confidence in the industry and minimise unwarranted concerns through its new Strategic Regional Land Use Plans.

The joint submission suggests the NSW Public Accounts Committee recognise that coal remains the most competitive baseload power option for NSW and only its continued use will help to ameliorate projected electricity price increases.

The submissions included five key recommendations:

1. NSW electricity generation policy should be based on open markets, transparency, reliability and economic efficiency principles. This approach will provide competitive outcomes that will best serve the interests of NSW.

2. NSW needs a clear energy strategy for the next 10, 20 and 25 years to assess when new baseload power is needed and provide enough time to develop low emissions technologies given their strategic importance to NSW for domestic electricity generation and future coal exports.

3. Locating storage sites for carbon dioxide sequestration is fundamental to the deployment of carbon capture and storage (CCS) technology in NSW and should be a focus of the Coal Innovation NSW work programme.

4. The government must take a leadership role in discussions on complex issues such as land use to help improve public confidence in the industry.

5. Government policies must not unnecessarily sterilise coal resources or burden industry with unnecessary delays and costs.