In September 2014 the Australia Institute made a written submission and in-person presentation to the NSW Planning and Assessment Commission on the proposal to extend the Invincible and Cullen Valley mines, owned by Coalpac. The mines are in a sensitive environmental area near the Blue Mountains World Heritage Area.
The key points of our submission and presentation:
The proponents assume electricity generators will pass savings to consumers by expanding electricity supply if modifications are approved.
- The generator, Energy Australia, says electricity market is already “grossly oversupplied” and is reducing supply.
- Economic modelling in favour of the project is based on electricity price forecasts three times higher than current forecasts.
- Any savings from the project will be kept as profits, accruing to Energy Australia’s foreign owners, giving no benefit to NSW.
- Discounted coal to Energy Australia means less royalties are paid – a loss to NSW.
- Energy Australia already has approval for access to competitive coal supplies.