Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

The Treasurer has provided the following answer to the honourable senator's question:

Section 5.4.3 of the Government’s Strong growth, low pollution: modelling a carbon price report contains detailed projections of the electricity generation sector, including generation capacity in the Latrobe Valley/Gippsland region over time.

The modelling shows that the Latrobe Valley remains an important energy exporting region, even as existing coal plant is retired. The Latrobe Valley has significant transmission and distribution networks, making it ideal for investment in new and cleaner energy sources.

The Government’s planned closure of 2000 MW of very highly emission-intensive power generation capacity was not specifically modelled. However, the modelling does include retirements that are projected to occur as a result of carbon pricing.

SKM MMA and ROAM both modelled the electricity sector at the generator level and included region specific assumptions about the cost and performance of new generators. As such, the regional results of the electricity sector modelling are considered reliable, subject to the inherent uncertainties involved in these types of modelling exercises.