Australia has lost its pole position in electricity competitiveness. The gradual increase in subsidised renewable energy in forcing out coal plant has transformed the Australian industry from perhaps the cheapest in the world into, on some measures, one of the most expensive in the world.
A 2022 closure of Liddell would mean a further deterioration of industry competitiveness and increased household prices. Some options to prevent this would include new capacity being built – perhaps an enlargement of Victoria’s Loy Yang B now under Chinese majority ownership, or the National Party’s call for a government-financed new station in Queensland. But even with such new investment, there will be a great deal of pressure placed on AGL to maintain or sell Liddell – after all, if the station were really worthless it could just hand back ownership to the NSW Government which could seek an alternative owner.
See the full article in the Spectator