No. You now need government approval to build a new power station. It just means you will also need approval to shut down an old power station. That's because these things need to be done in a systematic manner and need a centralized controlling body to regulate. As for Liddell, it would most likely have to stay open at least until the on-demand power can be replaced by Snowy Hydro II. So 5-10 years perhaps.
No. You now need government approval to build a new power station. It just means you will also need approval to shut down an old power station.
No you don't.
Building a power station and shutting one down are two totally different issues.
What you need to do if you want to shut down a power station is settle any contingent liabilities that would arise upon closure, such as satisfying environmental rehabilitation issues, and providing appropriate notification to all stakeholders (suppliers, employees, customers). Which is what AGL have done.
But there is nothing that compels AGL to continue to operate the power station until such a time as the authorities deem it OK for it to cease operating.
(Of course, if it really feels that it is in the national interest for Liddell to remain operational, the government - or anyone else, for that matter - is free to buy Liddell from AGL for a price at which it makes commercial sense for AGL to accept.)
"As for Liddell, it would most likely have to stay open at least until the on-demand power can be replaced by Snowy Hydro II. So 5-10 years perhaps."
And if it becomes unprofitable for AGL to continue to operate Liddell, or it is deemed to be unsafe or environmentally unfriendly to operate due to its age, and for which AGL's risk management processes say that AGL could incur liabilities at some future stage?
Are you saying the government can force AGL to incur a financial loss, the ultimate quantum of it is actually indeterminate?
That sounds to me disconcertingly like Marxist economic management.
"But no its no problem because if AGL wants to get out of coal, others will be happy to buy their aging coal fired power stations and run them for as long as they are needed."
Given AGL's competing energy generation interests, the price that AGL is likely to be asking for this particular coal-fired generator, despite it being tired and in the late autumn of its operating life - is highly unlikely to be met by any willing buyer(s).
So, sure, others might be happy to run ageing coal fired power stations, but I don't think they'll be happy to pay the asking price under the circumstances.
(20min delay)
