AGL statement regarding AEMO advice to the Federal Government
AGL welcomes confirmation from AEMO that our NSW Generation Plan addresses the potential shortfall that it identified may follow the closure of Liddell Power Station in 2022.
We also welcome the market operator’s view that a competitive market approach to deliver the required resources is best for consumers.
“If all three stages of the AGL plan are completed, the resource gap will be eliminated…
“A market approach that allows multiple other participants to compete to invest in a variety of resources that can address the reliability deficit to produce the best overall outcome for consumers.” AEMO Advice to the Commonwealth 16 March 2018, page 9
AGL is already implementing our NSW Generation Plan, which proposes a mix of high-efficiency gas peakers, renewables, battery storage and demand response as well as the efficiency upgrade at Bayswater Power Station. The feasibility of a pumped hydro project in the Hunter region is being explored with the NSW Government.
The plan delivers dispatchable power by incorporating a mix of technologies in a market where the cost of renewable technology is falling and more flexible, peaking generation is required.
An independent assessment of AGL’s plan found the replacement generation is more affordable at $83/MWh, compared with extending Liddell at $106/MWh.
Decisions for the investments are staged to enable flexibility to respond to the changing needs of the market and improvements in technology over the next five years. The plan also aligns with the National Energy Guarantee, which AEMO has agreed will encourage competitive markets and produce the best outcome for consumers.
AGL is committed to helping shape a sustainable energy future for Australia. We operate the country’s largest electricity generation portfolio, we’re its largest ASX-listed investor in renewable energy, and we have more than 3.6 million customer accounts. Proudly Australian, with more than 180 years of experience, we have a responsibility to provide sustainable, secure and affordable energy for our customers. Our aim is to prosper in a carbon-constrained world and build customer advocacy as our industry transforms. That’s why we have committed to exiting our coal-fired generation by 2050 and why we will continue to develop innovative solutions for our customers.