However,analysts are expressing doubt over AGL’s timelines and expect power plants could be shut even sooner as the rollout of large-scale renewable energy and rooftop solar continues to squeeze coal further out of the market.
“We consider plant closures may be accelerated further to 2028 and 2035 respectively due to long-term operating headwinds,” UBS head of energy and utilities research Tom Allen said.
Meanwhile,Macquarie’s analysts said the impact of state governments’ pro-renewables policies and transmission-line upgrades between Victoria and NSW would continue to pressure the economics of coal.
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“We suspect Loy Yang’s timeline will migrate earlier,” they said.
Union representatives for AGL’s power station staff have called on management to urgently meet with employees to discuss the impact of fast-tracked closures,commit to ensuring job-transfer opportunities and avoid forced redundancies.
Mining and Energy Union president Tony Maher said the power market was undergoing a major transformation,but workers and communities must not “pay the price of decarbonisation”.