Angus Taylor's Liddell taskforce slammed as guise for propping up coal | RenewEconomy

Angus Taylor’s Liddell taskforce slammed as guise for propping up coal

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Federal and NSW Governments establish taskforce to examine options for Liddell closure that’s set to reignite pro-coal push.

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(AAP Image/Dan Himbrechts) NO ARCHIVING
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Federal energy minister Angus Taylor will form a new taskforce to investigate the implications of the looming closure of the Liddell power station, a move that will continue pressure on owner AGL Energy to keep the ailing coal-fired generator operating for as long as possible.

Taylor said the taskforce, to be established in partnership with the NSW Government, will consider “all options”, and did not rule out using taxpayer money to extend the life of the plant. AGL responded by saying doing so would cost “a lot of money” and any such move “does not stack up.”

The announcement of the taskforce – whose members have not yet been named – has already been slammed by environmental groups as a delay tactic and is a pretext to the government to pour money into ageing coal infrastructure.

It is yet another intervention by Taylor into the energy market, including his so-called “big stick”, and his proposal for underwriting new generation investments, including potentially extending the life of the Vales Point coal fired power station.

“The Morrison and Berejiklian Governments are acting to ensure there is no repeat of the impact on the National Electricity Market following the premature closure of the Hazelwood Power Station in Victoria,” Taylor said in a statement.

Hazelwood, however, is a different situation. Its closure was announced with little warning, but AGL has given six years notice, giving plenty of time to it and other participants to fill the gap. There will also be the new “reliability mechanism” that is designed to ensure retailers have the capacity to fill up any shortfall.

AGL Energy recently announced that it would delay the closure of the 2,000MW Liddell power station, to just after the 2022/23 summer, citing concerns of supply constraints during peak demand periods in summer. It had flagged a closure in 2022.

The closure of Liddell power station has been a hot political topic, with the Federal Coalition government undertaking an unprecedented intervention in AGL’s plans, trying to find a buyer for the power station who will keep it open, ignoring the wishes of AGL.

News of this latest intervention came as the Australian Energy Market Operator put out a call for emergency reserves to deal with the upcoming summer heatwaves, and noted the huge increase in coal plant outages across the grid. Brown coal availability is now at its second lowest level ever. See AEMO seeks emergency reserves as coal outages increase across NEM

AEMO also noted that rooftop solar is not just reducing average demand, it is also having the biggest impact on emissions. See Rooftop solar slashes demand levels and emissions across main grid

The Federal government says it is keen, as are all stakeholders, to avoid some of the issues that arose during the closure of the Hazelwood power station, and it was one of the key motivators of a rule change requiring power stations to give at least three years notice of closure.

This raises the question of whether the taskforce is even necessary. AGL has long acknowledged that a comprehensive plan is required to manage the withdrawal of the Liddell power station from the national energy market.

AGL presented such a plan in late 2017, which included $1.36 billion in new infrastructure investment that would see the coal-fired generator replaced with gas-peakers, a mix of solar and wind projects, demand response and large-scale battery storage.

The plan won the endorsement of the energy market operator, with AEMO saying that the plan was ‘more than enough‘ to replace the capacity lost through Liddell’s closure.

However, Taylor may have already flagged the kind of outcome he hopes to see from the Liddell taskforce.

“The Liddell Taskforce will look at all potential impacts of Liddell’s closure, options for extensions or like-for-like replacement, and ensure affordable and reliable energy for NSW families and businesses,” Taylor said in a statement.

What will ‘like-for-like’ mean?

“Any replacement option must be like-for-like. That means if you’re replacing it with solar and wind, there’s got to be a solution to what happens when the wind doesn’t blow and the sun doesn’t shine,” Taylor expanded in an interview with ABC Radio National.

One can read between the lines, and with Taylor saying that “all options need to be on the table” that there will almost certainly continued advocacy from the Coalition government for new or extended coal-fired generation.

Taylor is obsessed, like most conservatives, about the concept of “base-load”, which in their minds means either coal or nuclear. This contrasts with the focus on “dispatchable” energy favoured by the industry itself. Last week, Taylor announced he had asked a parliamentary committee to look into the economics of nuclear power in Australia.

AGL has previously said that the ageing plant would require $900 million in new investment to keep it running for another ten years.

“I’m not going to get into speculation about what the outcome of the taskforce is going to be. What I’m going to say is that we’re going to find a solution to this problem, and we must because we can’t see a repeat to Hazelwood,” Taylor told the ABC.

The decision to further drag out the future of the Liddell power station is in contrast to this week’s decision from the WA Government, which opted to close the Muja C power station, which is nearing the end of its operating life, after concluding that it could not justify burdening WA energy consumers with the $350 million cost of keeping the power station operational.

The formation of the taskforce has already attracted criticism from environmental groups who view the announcement as a distraction and a delay tactic, when the Government should be focusing on the decarbonisation of the energy system.

“This taskforce is a farce, and all it is serving to do is underline the Federal Government’s obsession with propping up aging coal burners at any cost,” Greenpeace Australia Pacific’s head of campaigns Jamie Hanson said.

“Extending the life of old, unreliable and polluting coal-fired power stations like Liddell or considering ‘like for like’ replacements is exactly the opposite of what the Federal Government should be doing.”

“This is part of a pathetic culture war centred around Taylor’s obsession with propping up a dying and dirty industry at any cost. Australians want to move on and see solutions in the form of clean and reliable renewable energy and storage,” Hanson added.

The membership of the taskforce has not been disclosed, but will likely include representation from Federal government departments, led by the Department of the Environment and Energy, their NSW government counterparts and representatives from AGL.

The taskforce is expected to deliver its findings and recommendations before the end of the year.

 

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13 Comments
  1. Glynn Palmer 3 months ago

    Will there be consideration of the definite probability of a unit failure in the event of a severe heat wave when it is imperative that all units are available for generation?

  2. lin 3 months ago

    What will ‘like-for-like’ mean?
    Obviously they are looking for something that averages 50% capacity factor and breaks down regularly.

  3. UndoubtedlyDoubtful 3 months ago

    I’d be happy to advise Angus that the implications of closing Liddell are more efficient means of electricity production will come to pass that doesn’t involve fossil fuels.

    Welcome to the third industrial revolution.

    Must be good transmission to the site so Angus could sponsor some solar thermal on the site? Or maybe some hydrogen storage that soaks up renewables and generates on demand? Do them both? Combine it with @ RobertO’s demand management?

    The answer is not coal. How about investing my taxpayers $ in something with a future?

    • riley222 3 months ago

      “How about investing my taxpayers $ in something with a future?”
      Nailed it, exactly how I feel

    • Joe 3 months ago

      The future according to Anxious Angry Angus is…the “Little Black Rock”, Coal, “It’s an amazing Thing”.:

    • Phil NSW 3 months ago

      Lake Liddell could be a useful platform for a floating solar farm. Might get the temperature of the lake down after years of being a heat sink for inefficient fossil fuel burning.

  4. bedlam bay 3 months ago

    Same political chicanery from Toxic Taylor as we suspect from the outrageous court action against four SA wind farm operators by AER. But unlikely to succeed and Taylor can then take credit for big compensation payouts. He is not a true conservative but a very arrogant reactionary.

  5. Island fisher 3 months ago

    So AGL/ Liddel which is already a broken down hack is forced to extend its life and in that time after there is catastrophic failure and a work place death will Taylor be charged with industrial manslaughter?

  6. Cooma Doug 3 months ago

    Taylor will use the Liddel issue to force more gas plant into the grid. Extending coal and pushing gas peaking plant will be the worst option in the proposed rule changes and the most expensive and disruptive option in the necessary transition.

    If Taylor manages to block and distort the optimum process the cost will be huge.
    It will reduce the value of all renewable assets.
    Because of the significant influx of solar and wind generation, the market viability of coal would have to be subsidised and the capacity factors of peaking gas plant will be very low.
    The proposed market rule changes will have to be corrupted to make it work well for gas and coal beyond 2023. The proposed load side market
    is a whole new animal.

  7. Alan S 3 months ago

    But, but, but…, surely only renewables are subsidised. I read one commenter claiming $3B pa (a commonly touted figure) but he wouldn’t elaborate.

    • Rod 3 months ago

      The $3 billion is from a Merde-Och article by Judith Sloan. I think she used the max LGC amount ($85MWh) and used a capacity figure of 100%

      I would like to know the exact amount per year. I’m sure it is much less than $3B

  8. Mike Westerman 3 months ago

    Sadly Geraldine Doogue, who I admire, failed utterly to hold Taylor to account on RN this morning. Her preps should have handed her the question “Minister, isn’t the situation we’re in a direct result of the refusal of your government to accept the expert advice already available to you as to how to close Liddel without a repeat of Hazelwood? And how does your interference with a private company’s rights fit with Liberal policy, especially since that company already has in train the development of 500MW of pumped hydro (Bells Mtn and Kanmantoo) and 500MW of gas (Newcastle and Baker’s Inlet) which more than covers that retired by the Liddel closure?”. We have not seen anyone as mendacious as Taylor since the children overboard episode.

  9. RobertO 3 months ago

    Hi All, There a background issue that lots of people forget when they make comments on any of the issues on this web site

    What does convergence mean to you

    What does a mobile phone do today that it never did in 1984 (the internet, and photos)

    What dose the internet and photos have in common? Data

    The TV often shows a person accessing the fridge to see what in it and ask yourself is the fridge becoming smarter or is it just the phone (or is there more supple change in the fridge, it able to do more than it use too)

    The modern fridge has a few smarts in it. It will tell you the door has been open too long and it can use the opposite of that information i.e. nobody has open the door for several hours, and then the next step when is the next likely time the fridge door will be opened if I know the time. Can the fridge then decide when it should run the compressor to cool the fridge down or should it leave it alone (some fridges already do this).

    The fridge is part of the household grid. Something is going to take control of the household grid (and I suspect it will be a very smart inverter, able to interface with all the equipment within the house including the BEV or FCEV).

    Control of this data (the stuff that runs the household, the what for, when is and what has priority, even how full I want my battery when I leave to go to work in the morning) all controlled by one device. It will be within the home not external so that you retain full control. It not massive amounts of data, just tiny bits of control data (think of it as control commands)

    Technological change is happening faster that many people think.

Comments are closed.

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