Shares in AGL Energy surged following reports of a potential sale of its coal-fired Liddell Power Station in NSW.
A short time ago, the shares were up 2.4% to $24.26.
According to the the Australian Energy Market Operator, the closure of the power station in 2022 would leave NSW and Victoria with a deficit in capacity, increasing the risk of blackouts.
Prime minister Malcolm Turnbull is urging AGL to consider selling the power station rather than allow it to close as a way of keeping electricity generation capacity online longer.
However, AGL says it’s committed to the closure of the Liddell Power Station in 2022, which is the end of its operating life.
“We’re getting out of coal,” says AGL CEO Andy Vesey.
There have been some indications of interest in the sale of Liddell.
Delta Electricity, the operator of the Vales Point Power Station on the NSW Central Coast, says a thorough due diligence process would be needed to understand the condition of the plant and the costs involved in keeping it going.
“But we would be prepared to undertake that exercise,” a spokesman said.
“Delta supports an orderly transition to a low carbon future which also ensures a reliable supply of base load power. There is still a role for coal for the foreseeable future. It is not about picking one technology over another, but ensuring that business and household consumers can have certainty of supply.”