AGL backs solar thermal plants with Liddell move

The solar thermal project uses mirrors to capture sunlight with energy stored in water reservoirs and converted to electricity through a turbine.

RayGen in Blackburn, a solar panels company, has just won a state award for exporting. Left to right researcher David Shirley and Dr John Lasich in their research laboratory. Picture: Richard Serong

AGL Energy will construct a small-scale solar thermal storage project at its Liddell coal site in NSW as it seeks to develop a string of new generation sources to replace capacity once the plant shuts in early 2023.

The power giant has combined with Melbourne technology group RayGen to build the $27m storage project which uses mirrors to capture sunlight with energy stored in water reservoirs and converted to electricity through a turbine.

The first 3 megawatt or 50 megawatt hour phase will be located in Victoria’s Carwarp, near Mildura, with a second stage planned for the Liddell site in NSW.

AGL has already proposed a series of investments at Liddell to transform the site into a storage facility including a big battery and waste to energy facility.

“This is somewhat illustrative of the way we want to repurpose our coal generation hubs over time,” AGL’s interim chief executive Graeme Hunt told The Australian. “With the closure of Liddell, we’ve been looking for some years now how we would repurpose those facilities and this project is one that we’ve been working on.”

“It’s where we see the value in those energy hubs because you’ve got both the land position and the network connectivity that enables you to think about other investments - either directly by ourselves or with others that want to invest in the competitive advantage that exists on those sites.”

The Carwarp project is due online in June 2022 while AGL has a pre-feasibility study underway to assess a second plant at Liddell.

The Australian Renewable Energy Agency has provided $15m in funding for Carwarp.

“Making sure our solar assets are backed up by dispatchable generation is vital for energy grid stability and shoring up our long-term supply so that Australians have access to the reliable and affordable power they need,” Energy Minister Angus Taylor said.

Originally published as AGL backs solar thermal plants with Liddell move