PERTH (miningweekly.com) – The Australian government has expressed concern about energy generator AGL’s decision to exit coal, with the company announcing on Thursday that it would bring forward the closure of its Bayswater and Loy Yang A power stations in New South Wales and Victoria.
During its first-half results announcement, AGL announced that it would bring forward its coal closure dates to no later than 2033 for Bayswater power station from 2035, and 2045 for Loy Yang A power station from 2048.
“While this announcement is a commercial decision and AGL has complied with the minimum 3.5-year notice period, the exit of such a considerable amount of reliable generation is a concern for the continued reliability and affordability of the system,” said Federal Industry, Energy and Emissions Reduction Minister Angus Taylor.
“Delivery of new, timely, replacement dispatchable capacity will be critical in keeping prices low and the lights on.
“We have seen what happens when this does not occur, with prices skyrocketing by 85% following the premature closure of the Hazelwood power station in 2017. Energy is an essential service, and the government expects the market to step up to keep the lights on and prices low.
“AGL’s long-term plans for developing the sites of these generators as industrial energy hubs, and their plans for investment in new dispatchable capacity are welcome. As we saw with the announced closure of Liddell, proposals for new projects are not enough. It is critical that private sector announcements translate to actual investments,” Taylor said.
He said that the government would closely monitor and model the impact of these closures, to hold industry to account on the dispatchable capacity needed to ensure affordable, reliable power for consumers.