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Coal baron rules out suing over NSW energy plan as opposition wanes
By Peter Hannam
Energy magnate Trevor St Baker has dismissed media reports he plans to sue the NSW government over its new energy plan as some of biggest companies prepare to rejig their investments.
Mr St Baker, whose company Sunset Power bought the Vales Point power station for $1 million in 2017, told The Sun-Herald he had "no intention to sue" and had communicated that to the Berejiklian government.
Trevor St Baker, chairman of Delta Electricity, says the electricity market is being affected by many government officials.Credit: Christopher Pearce
News Corp papers on Tuesday reported the entrepreneur, sometimes dubbed a "coal baron", had "vowed to sue [Energy Minister Matt] Kean over the ambitious energy plan that aims to lure private investment to build 12 gigawatts of new capacity, or about nine Vales Point plants, by 2030.
"It was a total misquote," Mr St Baker said, adding that while "we think there are flaws in the plan ... we're pleased that there's an open door [to Minister Kean]".
The landmark energy plan passed into law on Friday after the government overcame a marathon effort over 30 hours in virtually one sitting by One Nation MP Mark Latham to shackle the bill with almost 250 amendments, and also reference Mr St Baker's criticisms.
With support from Labor, Greens and independents along with a unified Coalition, Mr Kean's main opposition stemmed from what he has dubbed "big energy companies seeking super profits".
"We literally tried to drain the swamp here," Mr Kean told The Sun-Herald. "The energy companies were basically dictating the terms to everybody else."
Mr St Baker said his companies were recognised "the global wish to reduce emissions", and were heavily investing in fast-charging units for electric vehicles. "There are more emissions in the transport sector than in the power sector," he said.
But increased intervention by all governments including the federal government with its massive Snowy 2 pumped hydro plan, made it more difficult "to have a clear market", making it harder for investors to settle on projects because they now needed higher returns to off the uncertainty, Mr St Baker said.
Some of those concerns surfaced with the Australian Energy Council, which posted a commentary asking if NSW was on a "highway to hell".
The lobby group for large generators, chaired by AGL, later sought to repair relations with Mr Kean, congratulating him after the bill's passage, with chief executive Sarah McNamara texting to say "on reflection [the headline on the commentary] was a tad too strong".
A spokesperson for AEC declined to comment on the texts.
Mr Kean said: "The vested interests like AGL who sided with Pauline Hanson’s Mark Latham were not able to stop these reforms and they will not be able to stop them being implemented."
For its part, AGL has sought to restore relations with the Energy Minister's office, while blaming the policy for forcing it to "press pause" on a 250-megawatt gas plant at Newcastle and plans for a battery at Liddell.
"AGL is aligned with the NSW governments objectives of a lower-emissions future and earlier this year in our Climate Statement set a target of net zero emissions by 2050," a spokeswoman said.
"As always, AGL will continue to work collaboratively with both the Federal and NSW Government to ensure we deliver sustainable, reliable and affordable energy for our customers," she said.
Research by Macquarie Bank supported the NSW plans, stating: "Good policy for NSW citizens (which we think it is) is painful for AGL's earnings outlook."