Renew Economy: Generators clash over Vales Point cash demand, but small retailers say they are the real victims

Excerpt from Renew Economy:

A fascinating battle is being played out in the corridors of Australia’s energy institutions as accusations fly and policy makers wrestle with the implications of the effective defunding of one of the last big coal generators in New South Wales.
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The Clean Energy Investor Group, which represents many large renewable energy and storage developers, says it opposes any changes.

“The current credit support rules are established for sound reasons, and no othermarket participants are currently exempt from these requirements,” it said in its submission.

“Any generator seeking to use cash as credit support must also provide a notice of closure within 3.5 years.” Vales Point, which had been due to close in 2029, recently extended its anticipated extended its plant life to 2033.

That position was supported by the Justice and Equity Centre, which said it is concerned about the implications of passing this rule change are the potential extended use of fossil fuel electricity generators (whether other coal generators or gas peaking power stations) beyond that which would otherwise occur.

“It seeks to continue operating an emissions intensive generator, and mitigation of the finance risks involved. Any concessions made to accommodate such a business should only be made to the minimum extent necessary, in the best interests of energy consumers,” it wrote.