Construction has already begun on a $27 million solar-hydro plant in Carwarp in Victoria’s north-west,while the second phase of the project is being planned at the Liddell site in the Hunter Valley,where AGL also plans to build a large-scale battery system.
“The value of those existing thermal generation sites need to be repurposed over time,” AGL managing director Graeme Hunt toldThe Herald andThe Age. “This is the kind of thing we think fits quite nicely.”
The Victorian plant,which has received $15 million funding from the Australian Renewable Energy Agency,will be able to deliver 4 megawatts of solar generation and 50 megawatt-hours of storage to dispatch green electricity into the grid when needed. The companies aim to scale the project up 100 megawatts.
“We believe the technology can be just as successful in the Hunter region,” Mr Hunt said.
AGL’s two proposed facilities come as thelooming 2023 closure of the Liddell coal-fired power plant has renewed debate about Australia’s energy transition. The Morrison government is ramping up warnings that NSW and Victoriacould face blackouts or price spikes without more investment in so-called “dispatchable” power assets. These facilities typically include facilities such as gas generators,batteries or hydro,which are able to supply on-demand electricity in times when weather conditions for wind and solar power are unfavourable.
Last month,it was announced that the Commonwealth-owned Snowy Hydro would build a 660-megawatt gas generator at Kurri Kurri,NSW,to replace AGL’s Liddell plant in 2023. This sparked criticism from climate advocates against expanding the use of fossil fuels,as well as energy industry leaders,who pointed out that regulators do not foreshadow a meaningful future supply shortfall that would warrant the dramatic market intervention of a giant taxpayer-funded gas plant.
Federal Energy Minister Angus Taylor said the Commonwealth’s funding for RayGen built on an earlier $3 million in support last year,and demonstrated the government’s focus on backing new technologies that could deliver reliable and affordable power to Australians.