HUNTER MP Joel Fitzgibbon admitted extending the life of the Liddell Power Station was “neither viable, smart or realistic”.
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AGL outlined its plans last week for the facility, located between Muswellbrook and Singleton, beyond its announced retirement in 2022.
The NSW Generation Plan proposes a mix of high-efficiency gas peakers, renewables, battery storage and demand response, coupled with an efficiency upgrade at Bayswater Power Station and conversion of generators at Liddell into synchronous condensers.
The AGL Board has approved the start of efficiency improvements at Bayswater that will create more capacity without using additional fuel; ordering equipment to convert generators at Liddell to synchronous condensers; and the signing of contracts to purchase 300MW of generation from two new solar power stations to be developed by third parties in NSW.
An assessment of AGL’s plan found the replacement generation is more affordable at $83/MWh, compared with extending Liddell at $106/MWh.
“AGL surprised no one last Friday when it released its plan for energy generation in the Upper Hunter,” Mr Fitzgibbon said.
“In a desperate attempt to blunt the political impact of rising power prices, three months ago Malcolm Turnbull tried to bully AGL into operating Liddell Power Station beyond 2022.
“It was never going to happen.
“We’d already been talking with AGL about a far more realistic, competitive and more environmentally-friendly plan, which would also create more jobs and more sustainable jobs.
“Last Friday’s announcement confirmed AGL is prepared to make the necessary investment and it’s great news.
“Even better, there will be no forced redundancies.
“AGL’s plans for an upgrade at Bayswater Power Station, new gas-fired generation, pumped hydro generation, solar and battery storage make so much more sense.
“It will allow the Hunter to remain the powerhouse of NSW, save and grow jobs and allow us to lead the transition to a cleaner economy.”