Both Delta and Alinta energy companies are showing an interest in buying NSW’s Liddell power station, but so far the plant’s owner insists it’s not for sale.
The coal-fired plant, owned by AGL, is due to close in 2022. However, the Federal Government is keen to keep it open beyond 2022 with fears its closure would leave NSW unable to meet its electricity demands.
AGL had previously said the plant was in a state of disrepair. However, the firm is now saying it intends re-using some of the plant’s components in its future plans, although it’s not clear at this point what this means.
The potential bidders: Alinta and Delta
Delta Power expressed an interest in potential purchase of the plant in September 2017. The company has been seeking acquisitions in both the coal and renewable energy sectors that will support reliability of supply. It also has plans for a 45 MW solar power farm in NSW, and a hydro scheme in South Australia.
To that end, Delta has expressed an interest in undertaking a due diligence process on the Liddell asset. However, so far it has not received a response from AGL.
The Sydney Morning Herald reports that Alinta Energy has also expressed interest in the plant. The company’s chief executive, Jeff Dimery, said yesterday he is willing to invest $1 billion in the plant. This would potentially keep it open until 2027 or even 2029.
Although AGL has indicated it will consider any “formal offer” it appears neither Delta nor Alinta would be willing to put forward formal offers without access for due diligence – which they have been denied.
As a result, the situation will remain at a stalemate unless AGL allows access to the plant.
Could solar fill the gap if Liddell power station closes?
The latest Renewable Energy Index report from Green Energy Markets found that since the closure of Hazelwood power station in Victoria last year, more energy was generated from renewable sources than either brown coal or gas.
According to the report, the recent fast growth in solar panel installations played a crucial role in this. This applies to both commercial and residential installations.
Solar storage batteries are particularly pertinent in improving security of supply, by enabling unused solar energy to be stored and used later. Furthermore, the price of home battery storage is falling all the time. This means solar power is becoming increasingly affordable and accessible for households and businesses across Australia.
