The deal comes despite pressure from Mike Cannon-Brookes for the coal plant to close earlier, and EnergyAustralia planning to cut back output at its NSW generator.
to continue supplying the Portland aluminium smelter, the state’s biggest consumer of electricity, until 2035. It reflects the need for managed arrangements to handle the closure of large coal power generators that are still needed for supply but are increasingly struggling with the influx of renewable power onto the grid.
The 2035 timing for Loy Yang A’s closure is in-line with AGL’s climate plan last year, which was criticised by Mr Cannon-Brookes’ Grok Ventures as insufficiently ambitious but supported by the majority of shareholders. Grok, which owns just over 10 per cent of AGL, in June said it was continuing to “implore AGL to increase its decarbonisation ambitions”, butthat the company is “going as fast as we can” on emissions reduction.
AGL said the accord with the government provides greater clarity around the reliable supply of power for the state, and avoids an unplanned closure of the generator before its scheduled shutdown. “The purpose of the STA [structured transition agreement] is to provide AGL, the state, the energy market, employees and consumers with a higher level of certainty around the ongoing operations, future closure and subsequent remediation of the [Loy Yang A power station] and mine,” AGL said in a statement, noting the deal does not change its provision for remediation of the site and impairment charges for the asset.
writes on the resources industry with a focus on energy, including gas, oil, electricity and renewables.
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