AGL Energy, one of Australia’s leading electricity providers, has shut down the first of three remaining units at the Liddell coal-fired power plant in New South Wales. The plant is the oldest in the country and has been operating for over 50 years.
On Monday morning at around 8.30 am, Australia’s oldest coal generator, the first of the remaining three turbines, shut down at the Liddell Power Station in Muswellbrook in the Upper Hunter Valley. The remaining two units were scheduled to be shut down on Wednesday and Friday.
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Four coal-fired generators will be left in NSW, located at Eraring, Bayswater, Vales Point, and Mt. Piper. According to certain market estimates, all of these generators may be shut down within a ten-year period.
However, as with all coal-fired power plants in Australia, Liddell’s efficiency dropped as it grew older. It lost its dependability and efficiency. Last year, one of the station’s units closed, leaving three in operation.
AGL will focus on the power plant’s demolition and transition to renewable energy after it is shut down.
Image: ABC News-Australia’s largest coal-fired facility, Eraring Power Station, is located in Lake Macquarie.
Will the Liddell shutdown bring a threat of blackouts?
According to Bruce Mountain, Professor and Director of the Victoria Energy Policy Centre at Victoria University, lower costs won’t increase as a result of the stoppage.
“[Liddell] was one of the more expensive but not the most expensive generators.”
“It wasn’t a significant price setter during much of the time, and its products can be made up by running existing generators harder.”
“I don’t think the closure of [Liddell] is significant enough to imagine it’s going to be a major price factor.”
“The regulators will be watching it like a hawk … and ready to pounce on AGL essentially, should it seek to withdraw capacity to take advantage of the constraints.”
Not affect on National Electricity Market, according to Climate Council
While some have raised concerns about the potential for blackouts or price spikes, the Climate Council, an independent organisation that provides expert advice on climate change, has stated that the closure of Liddell will not affect the reliability of the National Electricity Market (NEM).
According to the Climate Council’s report, the NEM is well-equipped to handle the closure of Liddell, as there is already an oversupply of electricity in the market, and there are several large-scale renewable energy projects underway.
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Image: WattClarity
The report also suggests that the closure of Liddell presents an opportunity for Australia to accelerate its transition to clean energy sources and reduce its greenhouse gas emissions.
The closure of Liddell is part of a broader trend in Australia and around the world towards adopting renewable energy sources. Australia has set a target of achieving net-zero emissions by 2050. The closure of coal-fired power stations like Liddell is seen as a necessary step towards achieving this goal.
While the closure of Liddell is likely to have some short-term impacts on the energy market, experts believe that the NEM is well-equipped to handle the transition to cleaner energy sources and that the closure of Liddell presents an opportunity for Australia to accelerate its transition to a more sustainable energy system.
After Liddell, there's still life: Power station transition to renewable energy
The shutdown is part of AGL’s plan to transition to renewable energy sources and reduce carbon emissions. The company has committed to phasing out coal-fired power by 2050 and has already begun investing in large scale battery storage, wind and solar PV projects.
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AGL intends to eventually create an overall project containing two battery units with a combined capacity of up to 500MW/2GWh as part of its Hunter Energy Hub. The Liddell battery project was approved by the NSW Department of Planning and Environment in April 2022.
The closure of the first unit at Liddell is expected to reduce carbon emissions by around 1.2 million tonnes annually. AGL plans to replace the lost capacity with a mix of renewable energy sources and gas-fired power.
While the closure of the Liddell plant has been met with opposition from some quarters, including the Australian government, AGL has stressed that the move is necessary to meet its emissions reduction targets and to ensure a reliable and affordable energy supply.The closure of the Liddell plant has been welcomed by environmental groups, who have long been calling for an end to coal-fired power in Australia.
AGL plans to shut down the remaining two units at the Liddell plant by 2023 and replace them with a mix of renewable energy sources and gas-fired power. The company has also committed to investing $1.5 billion in renewable energy projects over the next three years.
Sources&Images: AGL website, ABC News, Climate Council, 2HD
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