Senator labels energy supplier AGL ‘biggest hypocrite’ over plans to shut Liddell coal power station
ENERGY supply retailer AGL has been labelled “the biggest hypocrite walking around Australia” by a senior government senator.
NSW
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ENERGY supply retailer AGL has been labelled “the biggest hypocrite walking around Australia” by a senior government senator.
The criticism comes as the power giant looks to shut Liddell, the oldest coal-fired power station in Australia, by 2022 and a new report warns that Sydney could be struck with increasingly frequent rolling blackouts if the power station shuts.
Prime Minister Malcolm Turnbull is keen to see it stay open for at least five years longer and says the company is open to selling it to a reasonable party.
But AGL chief executive Andy Vesey took to social media overnight to insist the company was getting out of coal.
“Keeping old coal plants open won’t deliver the reliable, affordable energy our customers need,” Mr Vesey tweeted.
“We committed to the closure of the Liddell power station in 2022, the end of its operating life,” he said.
Senator Matt Canavan, who has stood aside as resources minister pending a High Court challenge to his parliamentary eligibility, said AGL was on one hand saying it wants to get out of coal and on the other making millions on the back of it.
He also seized on earlier claims AGL would shut its coal operations by 2050. “AGL are the biggest hypocrites walking around Australia at the moment,” he told ABC radio.
Senator Canavan argues AGL should be operating with a “modicum of the national interest in mind”, not just trying to boost its profits.
Mr Vesey will be in Canberra on Monday to discuss the Liddell plant’s future with Mr Turnbull and Energy Minister Josh Frydenberg.
The minister believes Mr Vesey is not trying to embarrass anyone, saying he had always been constructive and willing to talk.
He noted the AGL boss was yet to see an expert report that has informed the government’s thinking.
“He needs to see that report and implications that … the closure of Liddell will have for the price and stability in the energy market,” Mr Frydenberg told the Seven Network.
“What we have heard yesterday from the Australian Energy Market Operator (AEMO) is there is a concern, with Liddell scheduled to close in 2022, that there will be insufficient supply in the market.”
It comes as the federal government yesterday said it would take emergency measures to keep the Hunter Valley plant open at least five years longer than its shut-off date in 2022, despite AGL distancing itself from those plans.
The damning AEMO report handed to the government also recommended an emergency scheme that would pay private businesses to keep our lights on when extreme temperatures expose the vulnerability of renewable energy.
About 1000 megawatts of energy is already needed for the coming summer, with a possible shortfall predicted for Victoria and South Australia.
NSW came close to blackouts in February this year as temperatures soared and two gas power stations in the state temporarily shut down.
The AEMO report handed to Mr Frydenberg on Monday evening suggests it would be better to extend the life of existing coal power plants instead of building a new facility.
However, AGL appears unconvinced it should keep Liddell open.
That’s despite the fact that without the plant an extra 1000MW would be needed to keep the likelihood of a blackout to one in 10 years.
“AGL has provided this advance notice (of Liddell’s closure) to avoid the volatility created by the sudden exit of other coal-fired power stations,” a company spokeswoman said.
However, Mr Turnbull on Tuesday said Mr Vesey was open to selling the plant to “a responsible party” who would keep it open for a longer period.
“I think it’s better that the private sector owns generators like that but I want to say that the vitally important thing for me is to ensure that Australians have affordable and reliable energy,” Mr Turnbull said.
Mr Frydenberg seized on the report to blame the former Labor government from hastening the closure of baseload coal power stations, which he said created “major risks in terms of both price and stability”.
“Building on our actions to date, including putting in place new restrictions on the export of gas and opening up discussions with AGL over Liddell, the Turnbull government will leave no stone unturned to ensure affordable and reliable power for all Australians,” he said.
The AEMO report said the growth of renewable energy with lower operating costs had “eroded the business viability” of traditional coal plants.
The document warned the situation had also led to the power network being more reliant on weather conditions.
It estimated that if Liddell closes in 2022 the likelihood of an undersupply of electricity of between two and six hours would stand between 29 per cent and 49 per cent, and would jump even higher if another coal plant shuts.
It forecast this was “probable given increasing variable generation undercuts high capacity dispatchable generation energy provision”.
A number of government MPs had publicly called for a new coal power plant, most likely to be based in Queensland and funded by the Northern Australia Infrastructure Facility.
Treasurer Scott Morrison would not rule out the move as late as last week.
Mr Frydenberg said Mr Turnbull’s involvement in the issue was significant. “(It’s) a serious signalling of our intent that we will do everything we can to keep sufficient baseload power in the system,” he said.
Labor frontbencher Joel Fitzgibbon, whose seat is in the NSW Hunter Valley where Liddell is located, accuses Mr Turnbull of offering false hope.
“Liddell is almost 50 years old; no one would be happier than me as the local member to think that we could extend the life of Liddell but it’s not going to happen,” he said.
But Senator Canavan predicts people would be lining up to buy the station and would not rule out the possibility of Liddell being used to trial “clean coal” technology.
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