AGL’s NSW Generation Plan sets out how to manage the closure of the Liddell Power Station when it retires in 2022 to avoid any shortfall in the market.
- Liddell Power Station reaches the end of its technical life in 2022 and can be replaced with the latest technology at a lower cost than trying to keep the plant running.
- AGL’s replacement plan is technology agnostic, incorporating an upgrade of the Bayswater coal-fired power station and renewables firmed up by new gas plants and energy storage.
- AGL’s plan has been confirmed by the market operator as eliminating any shortfall when Liddell closes.
- Its previous owners, the NSW Government, also planned to close Liddell in 2022 as it is not economic to run safely and reliably after the plant reaches the end of its technical life.
Independent experts determined that to keep Liddell running for another five years, AGL would need to spend more than $920 million, but even then, it would not be safe to do so.
Liddell has many hundreds of kilometres of high-pressure steam piping that is degrading – leaks or cracks in this piping could cause serious injury to workers.
Our plan is to replace Liddell with the latest technologies, utilising the grid connection, workforce and infrastructure at the site. There will be no forced redundancies as a result of Liddell’s closure – retraining will be offered to the Liddell workforce.
We explored the options for selling Liddell or delaying its retirement, however repurposing the site with new technology is the cheapest option ($83/MWh compared with $106MW/h) and would be more reliable as the new technology will last for 15-30 years.
We understand concerns that Liddell’s closure could create a gap in baseload power. But AGL has already committed to $490 million in replacement technology and the Australian Energy Market Operator (PDF) has confirmed there will be no shortfall if AGL’s plan is implemented.