Lithgow City Council has raised no objections to a Centennial Coal plan to supplement Mt Piper Power Station's coal supply in times of emergency.
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Mt Piper generates up to 15 per cent of the State's energy, which owner EnergyAustralia estimates provides power to up to 1.2 million homes.
The plan aims to put strategies in place for a time when the coal supply from Springale Mine could fall short.
Centennial Coal sought approval to allow coal to be hauled from Clarence Colliery by road up until December 2020 as an immediate solution to a supply problem encountered earlier this year, in which Springvale Mine experienced lower yields.
However, as a long term solution in times of a supply emergency, Centennial Coal has identified the most viable option would be to modify the Lidsdale Coal Loading facility to allow it to receive rail shipments of coal from the company's other mining operations.
According to the plan, which is being considered by the NSW Department of Planning, Industry and Environment, the modification would allow the delivery of coal for transfer to use at Mt Piper.
"Acceptance and transfer of coal from the facility is critical to guaranteeing supply of coal to MPPS during any coal supply shortfalls," the modification's environmental assessment stated.
"Future shortfalls could threaten the reliable supply of electricity from MPPS."
The proposal would allow for the delivery of coal to the facility by train, one train per day.
According to a report to Lithgow City Council's meeting on August 26, the train would carry up to 3900 tonnes per train every day, with the coal received by rail then taken by overland conveyor to the Western Coal Services site.
"If no emergency coal supply provisions are put in place to address potential coal supply shortfalls, there is a risk that declining stockpiles at the Mount Piper Power Station will impact the efficiency of operations and threaten the reliable supply of electricity to NSW," the report, from council's director of economic development Andrew Muir, stated.
The overall number of train movements would not increase.
Centennial Coal has stated that the train unloading would only be implemented in an emergency event in which the on site coal stockpiles at the Mount Piper Power Station were reduced to a point at which it threatened continued electricity generation.
The coal would then be stockpiled for security of supply until it was secured.
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