AGL chief takes pot shot at rivals
AGL chief executive Michael Fraser said some companies were guilty of inconsistency in calling for stability in government policy, and then seeking to undermine it.
The policy under attack is the Rudd government's commitment to achieve 41,000 gigawatt-hours in electricity from large-scale renewable energy sources by 2020.
"This is one policy that has bipartisan support and yet the same people calling for policy stability are calling for change," Mr Fraser said.
While Mr Fraser did not name AGL's competitors, both Origin Energy and EnergyAustralia have called for the 2020 renewable energy target to be reduced. They argue that its original goal, to supply 20 per cent of power by the decade's end from clean energy, will likely be closer to 26 per cent or higher because of the unexpected slide in overall power demand.
Mr Fraser said that while Coalition Senator Simon Birmingham last week affirmed support for the 41,000 gigawatt-hour target, uncertainty remained over scheduling.
The legislated RET review in 2014 meant that those doubts would linger well after the election, holding back investment, he said.
The AGL chief was speaking after his company unveiled two large-scale solar energy plants for outback NSW capable of supplying 50,000 homes. At a total cost of $450 million, the ventures are some 15 times the current largest utility-scale solar plant in Australia.
Mr Fraser said RET opponents had also exaggerated the cost of renewable energy by claiming more gas-fired peaking capacity was needed to handle them. "There's not one shred of evidence of one peaking plant built anywhere in the country to back up renewables."
AGL's own assets were "balanced", Mr Fraser said, noting it already ran the country's biggest wind farm, at Macarthur, the largest brown coal-fired power plant, in Victoria, and the largest gas-fired plant, in South Australia.
Dragging on renewables growth, however, was that Australia might have some 9000MW of surplus generation capacity, he said.
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AGL chief executive Michael Fraser publicly criticised some rival energy companies for fuelling uncertainty about the federal renewable energy target (RET) and for what he called misleading claims about the costs of clean power. He said firms were inconsistent — asking for policy stability while at the same time seeking to undermine the RET.
The RET under discussion is the federal commitment to deliver 41,000 gigawatt‑hours of electricity from large‑scale renewable sources by 2020. AGL warned that calls to change the target would create uncertainty and could hold back investment.
While Michael Fraser did not name rivals directly, the article notes that Origin Energy and EnergyAustralia have publicly called for the 2020 RET to be reduced, arguing the original 20% clean energy goal may now translate to a higher percentage because overall power demand has fallen unexpectedly.
AGL warned that the legislated RET review in 2014 would leave doubts over scheduling lingering well after the election, and that this regulatory uncertainty could hold back investment in renewable projects.
AGL unveiled two large‑scale solar plants in outback New South Wales with combined capacity said to be capable of supplying about 50,000 homes. The projects come at a total cost of $450 million and are around 15 times the size of Australia’s then‑largest utility‑scale solar plant.
No. Michael Fraser disputed claims that renewables require significant additional gas‑fired peaking capacity, saying opponents had exaggerated costs and that there was 'not one shred of evidence of one peaking plant built anywhere in the country to back up renewables.'
AGL described its portfolio as 'balanced.' The company operates Australia’s biggest wind farm at Macarthur, the largest brown coal‑fired power plant in Victoria, and the largest gas‑fired plant in South Australia, reflecting a mix of renewable and conventional assets.
AGL warned that continued weakness in electricity demand could leave Australia with around 9,000MW of surplus generation capacity, and that this overcapacity could drag on the growth of renewables.
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