RAY HADLEY: The Federal Minister for Industry, Energy and Emissions Reduction, Angus Taylor. Minister. Good morning.

ANGUS TAYLOR: Good morning, Ray. Thanks for having me.

RAY HADLEY: Just wanted to get a quick update from you on this announcement about Origin Energy. Eraring facility in the Hunter, the coal fired power plant, the largest, to close early, 2025. Do we have enough resources to replace such a large facility?

ANGUS TAYLOR: Not yet. And that's why this is incredibly disappointing, Ray. I found out about it last night. There will need to be replacement or indeed, life-extension. We can't go without 2800 MW disappearing from the market. We've been resolute about getting more capacity in the market for closures like we've done with Kurri Kurri. Lots of people oppose that. Tallawarra down in Illawarra, lots of people oppose that, Snowy 2.0. All of these projects are needed, but now we need more. We're urging Origin to make sure that we do have a replacement plan. And can I also say that I'm incredibly disappointed here for the workers in that region, Ray. I think this will be bitter news for them, unexpected, and I really feel for them today.

RAY HADLEY: I just know the company says it tends to install a big battery, 700 megawatts. Did you just say the output at the moment is 2800? So this will be a quarter of what they already put out? 

ANGUS TAYLOR: Anyone who thinks a 700 megawatt battery that lasts for 2 hours is going to replace a 2800 megawatt coal fire power station is delusional. That's not enough. It can play a role. Of course it can play a role, but we're going to need serious replacement. I've been talking about this for years, Ray. We've been doing it. We've been putting our money where our mouth is with projects like Kurri Kurri, with all the opposition that's gone with that. And we'll take the same approach here. But we do expect Origin to act responsibly. We'll work with them and the New South Wales Government to make sure we get a solution in place. But today, I can understand the enormous disappointment of workers, and customers by the way - I've spoken to a number of customers who are extremely disappointed about this decision.

RAY HADLEY: Well, Matt Kean's stuck his head in - your counterpart in New South Wales, he said we have got a big battery. Would want to be a bloody big battery.

ANGUS TAYLOR: Well, it's not big enough. I mean, at the end of the day, what he's talking about is not big enough. It's delusional to think that a two hour battery, 700 megawatts, can replace this coal fired power station. It simply can't. So we need a proper plan. Now, we've been working on another new gas generator on top of the ones we've already been backing down in the Illawarra, and we'll continue to look at every possible option. I will leave no stone unturned to get a solution to this problem. But to find out last night with no warning, I have got to tell you, it's very disappointing.

RAY HADLEY: Well, I just have to say this to you. I'm looking at the story which was published in the last half hour: “Energy Minister Matt Kean says, ‘Origin's decision to close Eraring was months in the making. Origin approached me about the possibility of this decision a number of months ago’." Are you telling me that you knew nothing about this meeting between Kean and Origin?

ANGUS TAYLOR: Yes I'm telling you that. I found out last night. 

RAY HADLEY: So the Federal Minister has been left out of the loop by his own Liberal Minister in New South Wales?

ANGUS TAYLOR: I found out about it last night. I understand that others were informed earlier. We'll work to find a solution, Ray, because I'm not going to leave the electricity consumers of New South Wales on the lurch.

RAY HADLEY: Strike me pink. 

ANGUS TAYLOR: I've always been resolute on this. But I tell you what. My determination is to make sure we get enough capacity into this market by backing projects like Kurri Kurri, with all the opposition come from places like the ABC. Now, I will do exactly the same here. But I tell you what, letting the Federal Government know in a timely way would be helpful, and that didn't happen here and it is disappointing.

RAY HADLEY: Well Matt Kean must want to get you beat in May? I mean, he must be like a lot of the New South Wales state executive - he wants you blokes to get beaten. I mean leaving you in the dark over this is disgraceful.

ANGUS TAYLOR: Well that's a question for him and for others, Ray. But I tell you what, I'll do what I always do, which is put my head down and sort it out. 

RAY HADLEY: Okay. 

ANGUS TAYLOR: That's what we do. And all the opposition saying: ‘You can't have new gas generators, you can't replace these things’, all of this we heard with Liddell, we just ignored it and got on with the job and we'll do the same here. It would be helpful to have people aligned and getting on with it with us.

RAY HADLEY: Okay. Thanks for your time.

ANGUS TAYLOR: Good on you. Thanks Ray.