AGL Energy is an Australia’s company operating the country’s largest electricity generation portfolio, including traditional thermal generation and renewable sources such as hydro, wind, landfill gas, biomass and solar.


On 9 December 2017, AGL confirmed its plan to close the Liddell power station, the third largest coal-fired power plant in Australia, and outlined its strategy on how to replace the 1680 megawatts of baseload capacity that will be lost when Liddell wiill be closed in 2022. The AGL proposes a mix of high-efficiency gas peakers, renewables, battery storage and demand response, coupled with an efficiency upgrade at Bayswater Power Station. These investments are expected to flexibly respond to the changing needs of the market and improvements in technology over the next five years. According to Graeme Hunt, Chairman of AGL, old power plants can be replaced with a mixture of new, cleaner technology, while improving reliability and affordability.


AGL’s assessment found that extending coal-fired electricity generation ($106/MWh) is less affordable compared with the replacement of power generation ($83/MWh). Independent analysis found an extension of the Liddell power station until 2027 would cost approximately $920 million. Energy transition to a low-carbon economy also contributes to reduction of CO2 emissions. In particular, closure of the Liddell will shrink AGL’s carbon footprint by 17,6%. Replacement of the Liddell is also in line with the AGL’s strategic imperative - to prosper in a carbon-constrained future.


In order to avoid the volatility in the market possibly caused by the sudden closure of power plant, AGL already announced its plans to close the power plant in 2015 providing seven years notice. Now, AGL introduced its plans beyond 2022, when the Liddell power station retires.



The gLAWcal Team


AGL Energy