The Australian energy utility AGL has unveiled its plans for the 2 GW Liddell coal-fired power plant in the Hunter region, New South Wales (Australia), which will retire in 2022. Instead of extending it by another 5-year term at a cost of AUD920m (US$694m), AGL will replace it with gas peakers, renewables, battery storage and demand response, in line with the New South Wales Generation Plan.
The replacement plan capacity will comprise a 250 MW gas peaker facility at Newcastle, an upgrade of the 100 MW coal-fired Bayswater power plant, a new 500 MW NSW gas peaker and 1,600 MW of renewable energies additional capacity. AGL is also considering a pumped-storage hydro project in the Hunter region. Total investment would reach AUD1.36bn (US$1bn), including AUD490m (US$370m) in stage-1 projects.
The utility estimates that the replacement project will allow it to have a longer asset life of 15-30 years compared with the 5-year extension plan. Besides, the replacement is expected to have a levelised cost of energy (LCOE) of AUD83/MWh (US$62.3/MWh) while the life extension plan would pin the scheduled cost up to AUD106/MWh (US$80/MWh).