The " Liddell " Question !

The one inescapable fact about the reliability of our power supply during the summer peaks is the necessity of Liddell power station in its present form - or a replacement - to contribute electricity to the grid.  Without that, blackouts are a high probability.

Liddell is one of the last old coal fired power stations and its owners - AGL - intend to close it in 2022 and replace that power output with a new form of generation.  Just what form that will take has not been decided, but pumped hydro is certainly one option. AGL believe that for corporate credibility they need to withdraw from burning coal to generate electricity.

It seems that the Federal government doubts that AGL can get a replacement for Liddell up and running by 2020 and want this plant to continue beyond that date.   There have been threats and the suggestion that AGL sell the plant to a competitor.  AGL is standing firm and can not be legally forced to either sell or keep Liddell open.

This is developing into a dangerous game of brinkmanship.  Apart from domestic nuisance, power interruptions would play havoc with New South Wales industry and the state economics.  Power interruptions are something we associate with third world economies. Any government that allowed that to happen would be punished at the ballot box.

The logical resolution to this problem would be for AGL to agree to keep Liddell running until its new form of generation comes on line, but even that has a danger factor.   There is a doubt about Liddell's present reliability.  It is creaking old technology and its output falls far below capacity.  Should the plant fail during peak load the outcome would be catastrophic.

Power certainty will cost the government money.  As an interim measure it would be necessary to buy and install individual generators powered by jet engines.   They are relatively cheap but costly to run and would be an expensive - but necessary - way of ensuring that peak summer loads could be met.

That is probably the only realistic option until this AGL imbroglio sorts itself out.   The government is being realistic in doubting that AGL can draw up plans and get them approved, let tenders and actually achieve construction of new technology to replace Liddell in just four short years.   If failure to achieve consensus is just a clash of egos the public will not be in a mood for forgiveness.

The government is the only authority with the ability to make the decisions and spend the money to keep the lights on !