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Tallawarra Stage B Gas Turbine Power Station Modification Environmental Assessment

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Tallawarra Stage B Gas Turbine Power Station Modification Environmental Assessment Tallawarra Stage B Gas Turbine Power Station Modification Environmental Assessment June 2020 Executive summary The Tallawarra Stage B Gas Turbine Power Station Project (the Project) involves the development of a gas- fired power station and associated infrastructure located adjacent to the existing Tallawarra A Power Station. The Project was approved by the then Minister for Planning on 21 December 2010 and is considered Critical State Significant Infrastructure. A modification for the extension of the Project Approval lapse date (Mod-1) was approved by the Executive Director on 6 April 2016. The Project will provide greater energy security in NSW as large thermal generation is scheduled to retire and variable renewable generators continue to connect to the grid over the coming decade. The extension of gas generated power at Tallawarra supports EnergyAustralia’s customers in providing a reliable energy supply during the transition to renewable energy. The Project will provide electricity to the National Electricity Market at short notice during periods of high electricity demand, during supply outages, or when intermittent renewable energy supply is lower than demand. EnergyAustralia is seeking a modification of the existing Project Approval under section 5.25 of the Environmental Planning and Assessment Act 1979. The modification proposes to extend the Project Approval lapse date by two years to December 2022 and to amend the description of condition of approval 1.5 so that a single open cycle gas turbine may be used for the power plant. The modified Project would provide some minor environmental improvements to air quality, greenhouse gas and noise emissions during operation compared to the approved Project. The modified Project would have a minor impact on the visual landscape due to the plume dispersion device required to support aviation safety. EnergyAustralia has been actively pursuing the development of the Project since the approval of Mod-1 in 2016, however construction is yet to commence due to several unforeseen delays, including the requirement to satisfy condition of approval 1.6 in consultation with Civil Aviation Safety Authority (CASA) and Shellharbour City Council regarding aviation safety. Having now met condition 1.6, EnergyAustralia is proceeding with the Project development. However, EnergyAustralia has determined that the current global COVID-19 pandemic may result in the risk of further delays to the Project because of disrupted global supply chains and associated challenges in the mobilisation of construction. The timeframes that these risks may add to the Project are uncertain. Therefore, an extension to the Project Approval lapse date is proposed to provide opportunity to best manage the construction timeframe risk. The modification is considered justified as it would provide some minor environmental improvements and would provide EnergyAustralia with the flexibility to incorporate a contemporary and more efficient technology that was not available at the time of the 2010 Project Approval. It would support the need for a reliable energy supply at short notice and will support the transition of the electricity supply to the NEM to renewable energy sources. i Contents 1 Introduction .................................................................................................................................................. 1 1.1 Introduction ............................................................................................................................... 1 1.2 Approved Project summary ...................................................................................................... 1 1.2.1 Project progression .................................................................................................... 1 1.2.2 Project site and surrounds ......................................................................................... 2 1.3 Purpose of the report ................................................................................................................ 2 2 Statutory context ......................................................................................................................................... 3 2.1 Environmental Planning and Assessment Act 1979 ................................................................ 3 2.1.1 Project approval ......................................................................................................... 3 2.1.2 Proposed modification ............................................................................................... 3 2.2 Protection of the Environment Operations Act 1997 ................................................................ 3 2.3 Biodiversity Conservation Act 2016 .......................................................................................... 4 2.4 National Greenhouse and Energy Reporting Act 2007 (Commonwealth) ............................... 4 3 Strategic context and justification ............................................................................................................. 5 3.1 Need for the Project.................................................................................................................. 5 3.1.1 Electricity market and reliability ................................................................................. 5 3.1.2 Requirement for peaking capacity ............................................................................. 7 3.2 Changes to energy policy ......................................................................................................... 7 3.3 Key benefits of the modification ............................................................................................... 8 3.4 Implications of the Project Approval lapsing ............................................................................ 8 4 Modification description ........................................................................................................................... 10 4.1 Extension of time .................................................................................................................... 10 4.2 Amendment to Condition of Approval 1.5 .............................................................................. 10 5 Stakeholder and community engagement .............................................................................................. 12 5.1 Overview ................................................................................................................................. 12 5.1.1 EnergyAustralia engagement principles .................................................................. 12 5.1.2 Desired consultation outcomes ............................................................................... 12 5.1.3 Tallawarra Community Liaison Group ..................................................................... 13 5.1.4 Community consultation lead .................................................................................. 13 5.2 Consultation activities ............................................................................................................. 13 5.2.1 Community engagement plan ................................................................................. 13 5.2.2 Early consultation .................................................................................................... 13 5.2.3 Project approval ....................................................................................................... 14 5.2.4 Mod-1 ...................................................................................................................... 14 5.2.5 CASA and the aviation industry ............................................................................... 14 5.3 Modification consultation ........................................................................................................ 15 6 Environmental scoping assessment ....................................................................................................... 17 7 Environmental assessment ...................................................................................................................... 20 7.1 Land use ................................................................................................................................. 20 7.1.1 Background ............................................................................................................. 20 7.1.2 Existing environment ............................................................................................... 21 7.1.3 Potential impacts ..................................................................................................... 24 7.1.4 Conclusion ............................................................................................................... 24 ii 7.2 Air quality ................................................................................................................................ 24 7.2.1 Background ............................................................................................................. 24 7.2.2 Assessment methodology ....................................................................................... 25 7.2.3 Assessment criteria ................................................................................................. 27 7.2.4 Existing environment ..............................................................................................
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