Recently energy giant AGL rejected a bid from rival company Alinta Energy for its aging Liddell coal-fired power station. Instead, AGL plans to close the power station in 2022, replacing it with gas, renewables and storage.
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Organisations such as the Nature Conservation Council are applauding AGL's decision not to sell, and to pursue future alternatives to coal. Liddell is New South Wales' oldest and dirtiest coal-fired power station.
Any extension of its life would unnecessarily contribute to atmospheric pollution, and delay the introduction of cleaner alternatives.
Nature Conservation Council Energy Campaigner Brad Smith says “rejecting Alinta's bid to extend the life of the Liddell coal-fired power station beyond 2022 was the only responsible option.
Attempting to keep Liddell burning coal contravenes Australia's Paris commitments and undermines chances of limiting global warming to safe levels”.
AGL's decision to move from coal is not only environmentally beneficial, it makes good economic sense. The company's decision to replace outdated power generating technology with cleaner and more reliable alternatives is in line with the clean energy transition which most agree is inevitable.
Most sectors of the energy industry now recognise that the shift to cheap wind and solar, demand management and other smart ways to provide flexible capacity is the way of the future.
Energy Security Board Chair Kerry Schott said that there would be no new coal-fired generators built because they made no economic sense.
Despite strong economic and environmental arguments supporting the shift from coal to renewable alternatives, our Federal Government continues to cling to coal. The government enthusiastically supported Alinta's bid for Liddell, seeing the sale of the power station as an opportunity to extend its use beyond the planned use by date.
Their reaction to the rejection of Alinta's bid was of anger and disappointment and provoked calls from some government quarters to compulsorily purchase Liddell and sell it to Alinta for the nominated price, claiming that doing so was “in the national interest.”
It is not “in the national interest” to oppose responsible clean options to polluting coal.