AGL remains stubborn on Liddell closure, rejects Alinta’s purchase bid

Date: 2018-05-21   Author: Saipriya Iyer  Category: #news

AGL remains stubborn on Liddell closure, rejects Alinta’s purchase bid

AGL Energy Limited, a public listed firm in Australia involved in both the production & retailing of electricity & gas, has apparently rejected Alinta Energy’s USD 250 million bid for the Liddell power station. Some of AGL’s key officials have stated that the offer undervalued the future cash flows that the firm expected to accrue through Liddell coal-fired power plant till 2022, after which the company plans to shut down the power unit. Alinta Energy’s bid to acquire the power unit reportedly neither matched the interests of AGL nor its numerous shareholders.

Josh Frydenberg, the Environment & Energy Minister of Australia, has stated that he did not agree with AGL’s decision as the sale of Liddell to Alinta would have benefitted myriad consumers. He was even found to have reiterated what Rod Sims, the Australian Competition and Consumer Commission (ACCC) – Sims apparently was of the view Liddell’s purchase by Alinta will lower the electricity costs as well as reduce the competition. It has been projected that the closure of the power plant will impact the power supply of New South Wales as the state receives nearly 10% of power from the Liddell power station.

However, AGL has announced that it will find an alternative to Liddell and will make up for the lost power through energy generation with renewable sources, demand response, and battery storage. It is believed that the firm will replace the coal-fired power generating unit through the set-up of a USD 400 million gas-fired energy unit at Newcastle that will produce renewable energy.

Sources cite that AGL Energy is planning to generate nearly 1800 MW of renewable energy along with battery storage before Liddell is shut down officially.

Reportedly, AGL is claimed to be focusing on the shutdown of the Liddell powerhouse coupled with the advancement of its power replacement strategy that is likely to bring more power supply for the east coast region.



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Saipriya Iyer

Saipriya Iyer currently works as a content developer for AlgosOnline. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her belt, she has dabbled with website...

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