State backs gas as Labor leaders split on grid funding

Key points

• NSW officials have announced a tender for a gas-fired peaking plant to provide backup electricity as the state's renewable energy rollout expands. Energy Minister Penny Sharpe said the plants are needed to maintain reliability during periods of low renewable output, forecast to be a shortfall in 2033-34.
• The move conflicts with federal Labor, which excludes gas from its Capacity Investment Scheme.
• Treasurer Daniel Mookhey also plans to outline a debt reduction plan aiming to cut state debt by more than $10 billion ahead of the March state election.