Blackout risk: AGL hits back at pressure to sell Liddell
ENERGY giant AGL looks set to defy the consumer watchdog and refuse to sell the ageing Liddell coal-fired power plant, which critics say will ramp up the risk of blackouts after 2022.
National
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ENERGY giant AGL looks set to defy the consumer watchdog and pressure from government to sell the ageing Liddell coal-fired power plant, ramping up the risk of blackouts on the east coast after 2022.
The Australian Competition and Consumer Commission has urged AGL to sell the plant, saying it would be in the best interests of consumers, while Prime Minister Malcolm Turnbull has called for the energy giant to “do the right thing”.
But AGL chief executive Andy Vesey has indicated the company is unlikely to sell.
He told Fairfax Media that when Alinta Energy chief Jeff Dimery inquired about the purchase process and a “potential acquisition” on Tuesday and Wednesday, he replied: “We are not in the process of selling so there is no process.”
Alinta, Delta Electricity and Chinese conglomerate Shandong Ruyi have all indicated interest in buying the 1800-megawatt Hunter Valley plant.
All three are seeking to do due diligence on a purchase.
So far, AGL has refused the request.
Mr Vesey told Fairfax that Alinta or the other bidders would need to meet AGL’s expectations about the plant’s value and put forward a “bona fide bid” before it considered a sale.
“That hasn’t happened yet,” he said.
It’s understood the cost of the plant could be around $1 billion.
He defended the company’s decision to close the plant in 2022, despite the energy market operator warning there could be a shortfall in energy between that date and the Snowy Hydro 2.0 project coming on line three years later which could cause power outages in the eastern states.
‘‘Somebody has to be on the bleeding edge,’’ Mr Vesey told the publication.
‘‘We [AGL] are going to be the biggest emitter of [carbon dioxide in Australia] — that means we are going to need to be responsible and take action.’’
AGL has plans to replace Liddell with gas, batteries and pumped hydro and renewable energy after 2022 but has yet to decide on the mix and structure.
Mr Vesey said it would leave the decision to the last minute.