Federal Energy Minister Angus Taylor has warned that AGL’s coal-fired Liddell Power Station, which is set to close in 2022, must be “extended or replaced”; otherwise AGL will face financial penalties.
Mr Taylor said the government was prepared to use new laws – namely the Retailer Reliability Obligation – to meet the needs of customers by providing despatchable, 24/7 power.
“That means Liddell will either have to be replaced or extended – its life extended – one or the other,” he told Sky News.
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“Because if it doesn’t they’ll be in breach of this obligation – a new set of rules that came into place, was agreed to, in December last year and will be in place by July 1.”
The ageing coal power station will remove 1680 megawatts of energy from the grid when it closes, however, AGL has a $1.36 billion NSW Generation Plan to replace Liddell with an upgrade to nearby Bayswater power station.
Mr Taylor said the government would be monitoring energy retailers responses to the closure of Liddell and said there would be “serious penalties incurred if it’s not done right”.
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