Liddell power station: The true cost of keeping the coal-fired plant open

For a long time, Australian governments have believed that the private sector should run the electricity sector.

Even after refurbishment, Liddell would emit
about 5-6 million tonnes of CO2 each year.

And successive governments have used market instruments to incentivise reducing emissions, by supporting renewables, discouraging coal use, or both.

Now things seem inside out: uncertainty about energy policy mechanisms is pervasive and the Federal Government is attempting to broker a deal for the ageing Liddell coal plant to stay open past its planned decommissioning date.

AGL's chief executive Andy Vesey, meanwhile, said the company could find the best solution for the market without selling the plant or extending its life.

Keeping Liddell open would possibly require government payments — amounting to a carbon subsidy.

Fear of supply shortages and an appetite for coal have combined with an inability to resolve the political side of energy and climate policy.

Read the ABC News story - “Liddell power station: The true cost of keeping the coal-fired plant open.”