Liddell Power Station, Australia's Oldest Coal-Fired Plant, Ceases Operations

Australia: Australia's longest-serving coal-powered electricity station, Liddell, has shuttered after functioning for more than 50 years. The location will now be transformed into a Hydrogen center. Liddell was built in 1971 and commenced operations before the Sydney Opera House's official opening. The facility, which catered to over 8 million inhabitants of New South Wales, Australia's most heavily populated state, supplied approximately 10% of the state's electricity consumption.

AGL's Lake Liddell facility was a unique construction, deviating from the traditional practice of being situated near saltwater sources. The facility was primarily built for cooling and water storage. AGL has recently announced that the de-commissioned facility will be demolished, a process expected to take two years, to clear the site for the next phase of its life, as the Hunter Energy Hub. Hunter Energy Hub focuses on producing Hydrogen as part of its low Carbon integrated industrial energy hub initiative.

The Liddell power station, which has been instrumental in supplying power to over a million homes throughout its lifespan, is set to undergo a significant transformation. Today marks the end of one chapter of its operation, but the beginning of another, as plans are underway to turn it into the Hunter Energy Hub. AGL, the company which owns Liddell, has also revealed that it is exploring clean energy projects including wind development, pumped hydro, solar generation, and green manufacturing to support the site's transition.

The recent closure of the Liddell power plant has sparked concerns about rising electricity prices in New South Wales. The average wholesale electricity price in the region increased sharply from A$96.40 to A$228.86 on May 1st, following the shutdown. The situation has been compounded by worries that the transition to renewable energy may not happen quickly enough to fill the gap left by the closure of fossil fuel power plants. As an example of this, AGL has brought forward the closure date of its Torrens Island B power station in South Australia from 2035 to 2026, while Origin Energy's Eraring power station is set to be shut down soon. Yallourn power station in Victoria is also scheduled for retirement in mid-2028.

The multibillion-dollar NSW Snowy Hydro 2.0 development has been embroiled in controversy as of late. The federal government-owned facility, touted as crucial to Australia's shift towards renewable energy at minimal consumer cost, is set to face delays of up to two years and could exceed its already inflated A$5.9bn budget, which has already doubled since 2017.

As a result of this setback, the country's largest renewable energy project may not see full functionality until December 2029. Additionally, the gas-fired Kurri Kurri power station under Snowy Hydro is now facing a delay of at least one year.

Despite being one of the world's leading coal producers and exporters, Australia has not shown signs of reducing its reliance on fossil fuels. Origin Energy has announced the extension of the 180 MW gas-fired Osborne power station in South Australia until 2026 and the committed operation of the 123 MW gas-fired Bolivar power station over summer 2022-23.