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Media Release
Senator the Hon Robert Hill
Leader of the Government in the Senate
Minister for the Environment and Heritage

27 September 2001

ELECTRICITY INDUSTRY UNITES ON GREENHOUSE


Australia's leading electricity generators today agreed to dramatically reduce Australia's greenhouse gas emissions by signing up to the Commonwealth Government's Generator Efficiency Standards (GES) program.

Announcing the move, Minister for the Environment and Heritage, Senator Robert Hill said the program would help save around 4 million tonnes of greenhouse gas emissions by 2010, which is equivalent to removing 1 million cars from Australia's roads.

"Some 16 of Australia's leading generators have now either signed onto the program or have committed to signing, and these generators supply almost 75 percent of the national electricity market capacity," Senator Hill said.

"I commend the industry for its commitment to working toward world best practice in energy efficient electricity generation.

Companies have a range of options on how they can help meet their obligations under the program. These range from improving the combustion control of boilers to rebuilding air heaters. Australia is a world leader in the area of improving combustion control of boilers and the rebuilding air heaters would involve substantial Australian labour.

Australia's electricity generators are likely to invest around $240 million in new plant and equipment. These costs however will be recovered by an anticipated $250 million saving achieved through improved operational efficiency.

Companies joining the program today, have followed the lead of Delta Electricity who was the first company to sign on to the program in December last year. Other generators have also expressed interest in joining the program and are likely to sign on in the near future.

GES encourages best practice performance in fossil fuel electricity generation. While commitment to the program is voluntary, companies who agree to participate will sign legally binding five-year deeds of agreement with the Commonwealth Government. The program applies to both grid connected and independent power producers.

"Encouraging improvements in the efficiency of Australia's electricity generation is a key component of the Commonwealth's climate change policy," Senator Hill added.

"Greenhouse gas abatement is an important issue for all Australians and I am pleased that the Australian electricity industry has thrown its support behind this very important program."

Ends

Thursday, 27 September 2001

Contacts
Belinda Huppatz (Senator Hill's Office) 0419 258 364


BACKGROUNDER - ELECTRICITY INDUSTRY UNITES ON GREENHOUSE

The following companies have signed up to the Commonwealth Government's Generator Efficiency Standards (GES) program:

Hazelwood Power
CS Energy
AES Transpower Holding (Ecogen Energy)
Edison Mission Energy Australia
Energy Brix Australia
Loy Yang Power
Macquarie Generation
Stanwell Corporation
Delta Electricity

The following companies have committed to sign up to the Commonwealth Government's Generator Efficiency Standards (GES) program:

Eraring Energy
NRG Flinders
NRG Gladstone
Tarong Energy
Yallourn Energy
Power and Water Authority
Alcoa World Alumina Australia

Commonwealth of Australia