Low-carbon energy network for Sydney

The City of Sydney has signed a $100 million deal with Cogent, a company owned by Origin Energy, to build a tri-generation network that will supply four city precincts with low-carbon electricity, heating and air conditioning. It is the first part of the council's larger $440 million plan to provide 70% of the city's electricity requirements using the tri-generation network by 2030.

Tri-generation uses natural gas-powered engines to produce electricity on-site and captures heat waste to be re-used for heating or cooling water.

Sydney Lord Mayor Clover Moore says, "The Sydney tri-generation network could save NSW electricity consumers up to a $1 billion in avoided or delayed spending on grid upgrades (and) will provide consumers with a cleaner, cost-competitive alternative to inefficient and highly polluting coal-fired power plants."

Origin's General Manager of Retail Markets, Jim Galvin, said that by installing the energy generators closer to the sources of demand, the costs and losses involved in transporting energy over long distances were avoided.

"It is therefore a key part of the solution to moving to cleaner forms of baseload electricity generation," he said. "We are confident that (the project) will deliver tangible benefits to Sydney, whilst also paving the way for a wider adoption of low-carbon energy generation across Australia."

Source: AAP NewsWire