Australian emission plans will fuel expansion of gas-to-power

New South Wales will rely on coal seam gas and/or imported LNG to form the core of its plan to reduce emissions and electricity prices

The Australian government agreed the first of a series of emission-reduction plans with its constituent states on 31 January, when it agreed A$2bn plan with its most populous state New South Wales (NSW). The deal’s cornerstone is substantial support for an increase in gas for electricity generation. While the memorandum of understanding (MoU) is not legally binding, the east coast state has “set a target to inject an additional 70 pj/yr of gas” into its market. In exchange NSW will receive A$0.9bn in federal contributions—in a combination of grants, loans and guarantees—towards its A$2bn grid upgrade and renewable energy investment plan. Gas consumption in NSW is projected to rise from 120 p