Australian utility AGL called for the closure of old coal power plants to help balance Australia’s over-supplied energy generation market and support growth in renewables.
In an announcement introducing QIC as an equity partner in AGL’s Powering Australian Renewable Fund (PARF), AGL CEO, Andy Vesey, argued that “an orderly exit of aged, high carbon emitting plant it integral to creating sustainable conditions for further investment and new renewables and Australia’s path to decarbonisation.”
“We look forward to working with energy industry participants, the government and community to address this,” Vesey said.
AGL owns a number of large coal-fired power plants, including the lignite-fired Loy Yang plant, which is supplied from the adjacent Loy Yang mine, in Victoria and the Bayswater and Liddell power plants in New South Wales.
PARF is a partnership created by AGL to develop, own and manage about 1000 MC of large-scale renewable energy infrastructure assets and projects. The projects will help meet federal targets for renewable generation and support a shift towards a low-carbon economy.
QIC on behalf of its clients, which include Future Fund, Australia’s sovereign wealth fund, will provide AUS$800 million in equity funding to PARF, while AGL will provide AUS$200 million. It is envisaged that PARF funding will eventually reach AUS$2 – 3 billion.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/power/28072016/agl-calls-for-the-closure-of-old-coal-plants-2016-2099/