Money AGL considers extra life for coal plant

03:26  12 september  2017
03:26  12 september  2017 Source:   MSN

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Energy giant AGL will consider keeping a coal -fired power station open for an extra five years but sees no future in such technology. Since AGL acquired Liddell from the NSW government in 2015, AGL has invested 3 million in the plant to improve reliability.

Energy giant AGL has agreed to take to its board a proposal to keep the Liddell coal -fired power station open until 2027 or sell it to another party. More National Breaking News. AGL considers extra life for coal plant .

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Malcolm Turnbull has extracted a promise from energy giant AGL's boss to take to the board a proposal keep the Liddell coal-fired power station running for an extra five years beyond its shutdown date.

The prime minister and Energy Minister Josh Frydenberg met with AGL chief executive Andrew Vesey for 90 minutes in Canberra on Monday.

Mr Vesey, who described the meeting as "constructive", agreed to take to the board a proposal to keep the Liddell power station in the NSW Hunter Valley open for five years beyond its 2022 close date.

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AGL considers extra life for coal plant .

Local. Energy giant AGL considers extra life for coal plant . Like something out of a science fiction movie, tech-savvy citizens are having microchips inserted beneath their skin to make life that little bit easier.

It would either continue to be run by AGL or sold to another company.

The government expects to hear back from AGL within 90 days.

Mr Frydenberg said AGL would also produce a plan to "ensure sufficient additional supply into the market equivalent to what is coming out of Liddell".

The meeting came after the Australian Energy Market Operator identified a potential shortfall of 1000Megawatts of power in the eastern grid after 2022.

"The prime minister will not allow a shortfall in the market to occur that has been identified by AEMO, recognising that it is in consumers' interest to have a stable and affordable power system," Mr Frydenberg told reporters after the meeting.

Delta Electricity, which operates a NSW Central Coast plant, has flagged interest in taking over the plant, but says it needs to do due diligence before making any formal offer.

Liddell power station: AGL appears committed to closing coal plant despite meeting with PM

  Liddell power station: AGL appears committed to closing coal plant despite meeting with PM Energy provider AGL appears to be ruling out selling or extending the life of the Liddell power station, despite the Federal Government declaring that is still an option. Energy Minister Josh Frydenberg said yesterday's meeting between AGL and the Government ended with a range of options, including keeping the Liddell plant open for an extra five years beyond 2022. After the 90-minute meeting, Mr Frydenberg said AGL's managing director had agreed to ask the company's board to consider delaying the closure or selling the power station. But the company's chief executive Andy Vesey appeared to strike that down.

AGL considers extra life for coal plant .

AGL considers extra life for coal plant .

AGL did not ask for any government subsidy to keep the power station open.

"Today was about discussing the challenge that the market faces and the market is obviously changing quite dramatically," the minister said.

Mr Frydenberg, who is also environment minister, said the government remained committed to meeting its international emission targets.

Mr Vesey said in a statement while the proposal would be taken to the board, the company's future lay in renewable energy and large-scale battery development.

"We just don't see new development of coal as economically rational, even before factoring in a carbon cost," Mr Vesey said.

The company is investing $2 billion directly and indirectly in new supply.

The four Liddell coal-fired generation units were commissioned between 1971 and 1973, and the plant currently has 1680MW of effective capacity.

In April 2015 as part of its greenhouse gas policy, AGL committed to the closure of its coal-fired power stations at the end of their operating life.

Since AGL acquired Liddell from the NSW government in 2015, AGL has invested $123 million in the plant to improve reliability.

Despite this investment, during the February 2017 heatwave, two units from Liddell were out of the market due to unforeseeable boiler tube leaks.

As a result, there was not enough energy in the system and NSW experienced blackouts in parts of the state.

"As Liddell approaches the end of its life in 2022, it will likely experience more unanticipated outages, which is why we will spend a further $159 million to improve reliability at Liddell before it closes," Mr Vesey said.

Liddell power station on 'sliding scale to oblivion', AGL general manager says .
The general manager of AGL, which runs the Liddell power station, says it can find better places to invest time, money and resources than Australia's oldest coal-fired power station."The failures become more regular, the weak points larger and more numerous. So, yes, we are fighting a losing battle.

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