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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