Energy giant AGL has agreed to consider a government request to keep the Liddell power station in NSW open for another five years, or to sell it, following meetings between executives and Prime Minister Malcolm Turnbull.
The 90-minute meeting between AGL chief executive Andy Vesey with Mr Turnbull on Monday in Canberra ended with AGL saying it will take to its board the request to extend the life of the nation’s oldest power station.
AGL has agreed to deliver a plan in 90 days on what it would do to avoid an expected 1000MW power shortfall once the power station in the NSW Hunter is closed in 2022.
“I was asked to take to the AGL Board the government’s request to continue the operation of Liddell post 2022 for five years and/or sell Liddell, which I agreed to do,” Mr Vesey said in a statement.
Energy Minister Josh Frydenberg said the company will also ensure additional energy supply, the market equivalent of Liddell’s output.
“This would be firm, dispatchable capacity, and would have no adverse impact on consumers in terms of those price and reliability of the system,” he said.
Energy Minister Josh Frydenberg Source: AAP
The opposition says the power station is ageing and has accused the government of selling false hope with such “thought bubbles”.
“The industry has made it clear over the weekend that hundreds and hundreds of millions of dollars would need to be spent to give this 50-year old power station a few more years of life,” Labor energy spokesman Mark Butler said.
“We want to see what the alternative propositions that the Prime Minister might be thinking of to ensure that New South Wales has a long-term reliable and affordable supply of electricity.”
