AGL Energy, Australia’s largest coal-fired power generator and baseload provider, has reiterated its stance that nuclear energy has no place in the country’s transition to renewable sources.
AGL CEO Damien Nicks emphasized this during a presentation at a CEDA event, highlighting the company’s commitment to a renewable-focused strategy.
AGL’s Coal Site Transformation:
Despite the federal Opposition’s identification of two AGL coal generation sites as potential locations for nuclear power plants, Nicks clarified that these sites are already allocated for other purposes. AGL plans to transform these sites into clean industrial hubs, incorporating a range of renewable energy technologies and sustainable industries.
The site of the recently decommissioned Liddell coal generator in the Hunter Valley is set to become a major renewable energy hub. AGL envisions a multi-billion dollar investment in solar thermal generation, solar PV manufacturing, battery and solar recycling, waste-to-materials conversion, and hydrogen production.
Flexibility over Baseload:
Nicks emphasized that a grid dominated by wind and solar requires flexibility rather than the “always-on” baseload design typically associated with nuclear power. AGL aims to shutter its remaining coal generators by 2035 and is actively working to enhance their flexibility in the interim to better adapt to the fluctuating generation patterns of renewables.
AGL plans to expand its grid-scale battery assets, increase its hydro and gas peaking capacity, and grow its portfolio of distributed energy assets to support load shifting and manage the “solar duck curve” effect caused by rooftop solar panels.
Strategic Upgrades and New Projects:
The company has undertaken significant upgrades at its Bayswater and Loy Yang power plants to enable greater operational flexibility. Additionally, AGL is investing in new wind, solar, and battery projects, including the Pottinger Energy Park, the proposed Tomago battery, and the approved Bowmans Creek wind project.
Nicks advocated for the development of hydropower, citing its potential to provide long-duration storage and synchronous generation, crucial for a grid dominated by variable renewable sources. However, he stressed the need for supportive market settings and policy stability to facilitate this transition.
A Transformative Journey:
AGL recognizes the monumental shift underway in the energy industry and is committed to leading the transition to a net-zero future. By 2035, the company aims to completely phase out coal-fired generation and replace it with a diverse portfolio of renewable and firming technologies.
AGL acknowledges the crucial role customers will play in the energy transition and is focused on transforming its retail business to meet their evolving needs. By embracing flexibility and innovation, AGL is positioning itself as a key player in shaping Australia’s sustainable energy future.