The Australian Energy Regulator on Friday said it had launched proceedings in the Federal Court against two AGL subsidiaries,alleging the Bayswater coal-fired power plant in NSW and the Loy Yang A generator in Victoria’s Latrobe Valley were paid to be on standby to provide back-up services to stabilise the frequency of the electricity grid between 2018 and 2020,but failed to comply.
The regulator said it believed AGL’s conduct put the security of the electricity network at risk.Paul Jones
While there were no blackouts as a result of the breaches,the regulator said it believed AGL’s conduct put the security of the electricity network at risk by undermining the Australian Energy Market Operator’s ability to prepare for and respond to frequency disturbances.
“Electricity generators must do what they say they will do if we are to keep the lights on through the market’s transition to variable renewable generation,” said Justin Oliver,a board member of the Australian Energy Regulator.
“When generators are not able to provide promised standby services,it creates a risk to power system security and stability.”
In a statement,AGL acknowledged inadvertently violating the dispatch orders from the Australian Energy Market Operator,failing to ensure its generators were available due to technical errors.
AGL acknowledged inadvertently violating the dispatch orders,but said no profit was derived.Will Willitts
“At certain times over 2018 to 2020,units at the Loy Yang A and Bayswater power stations had an incorrect setting on the frequency influence switch at times when they had been enabled to provide contingency frequency control ancillary services,” a company spokesperson said.
“Those units consequently could not provide those services at those times.”
The violations were not intentional,AGL said,and no profit was derived. “The funds initially received for the provision of the services were returned to the Australian Energy Market Operator following discovery of the issue,” the spokesperson said.
AGL reported the issue at Loy Yang A to the regulator in 2020 after receiving queries from the market operator.
The future of AGL’s coal-fired power stations,which are the nation’s biggest sources of greenhouse gas emissions,has been in sharp focus since tech billionaire Mike Cannon-Brookes built an 11.3 per cent stake in AGL last year,before of its board of directors and forcing new pledges for faster and deeper climate targets.
AGL,which in NSW earlier this year,has now agreed to fast-track the retirement of its two remaining coal plants and invest billions of dollars building more renewable energy and “firming” assets,such as batteries,pumped hydro and fast-start gas plants.
Under its new closure timelines,AGL’s Bayswater plant in NSW is now due to close no later than 2033,while the retirement of Loy Yang A has been brought forward by up to 10 years from 2045 to 2035.
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