Coal’s future rock solid: Nahan

Energy Minister Mike Nahan has placed the State’s energy future firmly on the back of coal, saying it would be the “foundation” of the electricity system for years to come.

Mr Nahan made the comments during his visit to Bunbury on Saturday, when he attended Diwali celebrations as the guest of honour.

The State Government relies on Collie’s Premier Coal and Bluewaters Power Station to provide the bulk of the State’s electricity supply.

“Coal represents 30 per cent of total energy fuel,” Mr Nahan said.

“It has the lowest cost and it is the foundation of the electricity system going forward.”

Collie MLA Mick Murray has welcomed the comments and said they were understandable given the financial pressure the Government was facing.

“It has taken successive governments to work out who makes the cheapest power,” he said.

“There is work that needs to be done by the Government to ensure the future of both Collie coal mines.

“The price of production of coal has increased tremendously over the past five years and the price being paid for it has to recognise it.”

Greens MLC Lynn MacLaren described Mr Nahan’s words as “the kind of comment you hear from yesterday’s men”.

“Clearly the future of energy is in planet-saving renewables,” she said.

“There is no better time to transition away from coal than today as many nations around the world are doing.”

The importance of coal was shown last month, after Government-owned Synergy agreed to pay an extra $15 million a year for coal from Chinese-owned Premier Coal.

There was concern the previous deal did not meet market prices for coal and was putting jobs at the Collie company and the State’s energy supply at risk.

Synergy is Premier Coal’s biggest customer and coal from its mine supplies about half of Synergy’s distributed electricity.

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