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Aussie gov't intervenes to prevent closure of major power station

Xinhua,April 04, 2018 Adjust font size:

CANBERRA, April 4 (Xinhua) -- The Australian government has intervened to prevent the closure of a major coal-fired power plant.

Prime Minister (PM) Malcolm Turnbull has reached out to energy giant AGL to urge the company to sell the Liddell power station to Chinese-owned rivals Alinta Energy instead of closing the plant.

AGL announced in December that it would close the plant in 2022, saying it would cost 920 million Australian dollars (707 million U.S. dollars) to keep it open for a further five years with the company instead indicating it would shift its focus to renewable energy.

AGL said at the time it would not consider selling the plant because it would be too difficult to "unbundle" it from a neighboring facility also owned by AGL.

However, Alinta Chief Execuitve Officer (CEO) Jeff Dimery on Wednesday confirmed that his company would make a formal approach to AGL to take control of the plant in New South Wales' Hunter Valley.

Dimery said that Alinta had "been approached about our interest in buying and running Liddell for five to seven years past AGL's current closure date of 2022."

"We are open to that proposal; it fits with our strong desire to maintain reliability and affordability for customers as we transition to a lower emissions energy sector," Dimery said in a statement on Wednesday.

Turnbull and his Ministers have been urging AGL to sell the plant since September 2017, saying that to close the plant would cause an energy shortfall in NSW in addition to costing jobs.

"We have consistently urged AGL to keep Liddell operating for five years after they plan to close it, up to 2027," Turnbull said at a press conference on Wednesday.

"We know there is going to be a shortage of dispatchable electricity in New South Wales when Liddell closes."

"I think it's in AGL's interest to be seen to be a responsible player in the electricity market. Keep this power station going for a few more years to make sure there isn't a shortfall and then, if they choose to close it they can do so."

AGL has outlined a three-phase plan it said would prevent any shortfalls from the closure but the company's board has only approved funding for phase one. Enditem

 

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