Energy Australia confirms new gas plant in Illawarra after Morrison government threatened to intervene

Confirmation comes as questions raised over controversial Snowy Hydro project in Hunter Valley

Energy Australia has confirmed it will proceed with a new 300MW peaking power plant in the Illawarra in New South Wales capable of using a blend of green hydrogen and natural gas, as officials faced questions about a controversial Snowy Hydro project in the Hunter Valley.

Confirmation that the Energy Australia project will proceed follows a threat from the Morrison government to intervene in the market to ensure there are not shortfalls once the ageing coal-fired power plant at Liddell in the Hunter Valley closes in 2023.