States with pending nuclear retirements have taken two approaches to address this threat to their baseload generation:
subsidize nuclear generators, or embrace substitute fuel types.
The opportunity for the purchase was presented by a confluence of events — the Fukushima
nuclear disaster last year, the generous support for brown coal
generators in the government's carbon pricing package, which will see Loy Yang A alone get more than $ 1.2 billion in cash payments and free permits, and the anticipated sharp cost increases for NSW black coal
generators as their
subsidized source of coal comes to an end.