AGL firm on Liddell coal plant closure, despite government pressure

AGL to close Liddell coal-fired plant in April 2023.

The fate of the Liddell coal-fired power station seems certain after owner AGL Energy confirmed it will close the facility in 2022.

The statement was made by AGL Energy interim chief executive Brett Redman at the company’s AGM this week. It comes after months of pressure from the Coalition to keep the plant open.

Redman said the future is in renewables such as wind and solar power. Gas would also be required for reliability at first, then replaced with commercial-scale batteries as these fall in price.

AGL Energy will focus on renewables such as solar and wind
AGL chief says the future is in renewables such as wind and solar power

According the AFR, Redman said AGL wants to “work with the government of the day”. He also said he respects and understands the government’s aim to reduce prices for consumers.

AGL Energy decision driven by safety and carbon risks

Keeping the plant open would require a huge investment – around $900 million. Redman says the decision to close is “driven by safety and carbon risks”.

He also said that renewable energy targets will not affect the company’s decision as it has already made up its mind. AGL has ordered new equipment to convert an old turbine, in keeping with its decision to repurpose existing assets.

The move signals that investing in renewables such as solar farms and commercial rooftop solar installations is the future for industry.

Federal government pressure on Liddell coal plant

Earlier this year the federal government put pressure on AGL to either sell the plant or keep it open for longer.

Former PM Tony Abbott even suggested the Turnbull Government acquire the plant compulsorily and sell it on to Alinta. Abbott compared AGL to a “militant union” and called the decision to close it “self-interest” to increase the price of power.

Former energy minister Josh Frydenberg rejected the call to acquire the plant. He pointed out that market interference of the type went against Liberal values.

Coalition MP Craig Kelly also spoke up on the issue. He said the government should force AGL to keep the plant open or sell it to another operator. Kelly sought an overhaul of consumer laws to make this happen.

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