Clover Moore in Sydney. Source: The Daily Telegraph
SYDNEY Lord Mayor Clover Moore has abandoned ambitious plans to build a clean, green power plant network to take Sydney off the grid - estimated to cost $5 billion.
Despite only writing in February for The Daily Telegraph that the low-carbon decentralised power project posed no financial risk, today Ms Moore refused the bid to install a series of mini gas-fired power plants from the CBD to the biggest urban renewal site in Australia at Green Square that would help take the city off the coal-fired grid.
Blaming "economic and regulatory hurdles", including federal and state laws, the falling carbon price, restrictive electricity network regulations, gas price uncertainty and poor take up rates, Ms Moore said the council's commercial case for tri-generation had been reduced.
"Despite this decision, we are redoubling our efforts to reduce carbon emissions," she said.
"Tri-generation remains a cost effective way to cut emissions and provide power, heating and cooling for Sydney Town Hall, Town Hall House and the Queen Victoria Building - and we will continue our plans there because we own all three buildings."
Tri-gen is a plant in a building that uses gas that makes electricity, and the heat then captured and used to heat water which is reticulated around the building and used to heat or cool the building.
The original plan had tri-gen precincts throughout the city.
Sydney's trigeneration network poses no financial risks
Ms Moore said the council was still rolling out the biggest solar installation in Australia, replacing street lights with energy efficient lights, a fuel cell into Prince Alfred Park Pool and a major energy efficiently retrofit of council buildings.
"The city is committed to reducing our emissions," she said.
"We will not proceed with the precinct tri-generation agreement negotiated last year with Cogent Energy due to economic and regulatory hurdles."
She said the tri-gen projects already underway in council buildings would continue but the Green Square precinct, that would supply one of the biggest urban renewal sites in Australia, would not go ahead.
Ms Moore promised to lobby the Federal Government to bring in regulatory changes to make it easier for alternative power supplies.
"it can reliably supply power, heating and cooling requirement that big cities like Sydney need to function," she said.
The council had aimed to slash it's emissions by 70 per cent by 2030.
Hot water, hot air and $5 billion down drain
Tri-gen is planned to be used in the $2 billion Central Park development as well as the University of Sydney.
Sydney City Council CEO Monica Barone said it was "only a small road block".
"The economics of tri-generation at Green Square don't stack up now, but we will do everything we can to lobby the state and federal government's for regulatory reform," she said.
"All the research, technical material sand scoping we have done so far will be used to pursue tri-generation systems in out own buildings and for future tri-generation projects across the city."
Ms Barone said the council would revisit tri-gen "once the regulatory environment makes it more attractive for large scale precincts".
Qantas, Google and One Bligh St already have tri-gen. Ms Barone said tri-gen precincts were the future, and would allow tri-gen plants to be shared between buildings.
"We were not able to find a way to make it financially viable," she said.
"The changing carbon price has also had an impact. We are going to continue with the precinct at Town Hall."
Sydney City Council debates trigeneration power scheme
The council today released new projects that it would consider instead, including a tri-gen precinct at Town Hall and avoids network charges - which was one of the biggest challenges of rolling out tri-gen precincts.
It also looks to bring in fuel cell technology at Prince Alfred Pool _ which was stalled for years as the council investigated a tri-gen plant there.
The council said incentives were needed for precinct tri-generation.
"What we are doing this morning is saying there is a change in direction," Ms Moore said.
Ms Barone said it was not viable because it cost more than the council thought reasonable to bring in.
"Despite our best efforts, the offer was over and above the amount that it thought reasonable," she said.
Ms Moore said money spent on researching the development was essential for the future of "our children and our grandchildren".
"We share our research with the other councils," she said.
The council has already spent $2.5 million on legal and peer reviews to get to this phase, which Ms Barone described as "less than one per cent of the annual budget".
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