Recently one of Australia’s oldest power stations, Liddell, was fully decommissioned after its closure was announced five years ago. The energy company AGL announced the closure in advance to give enough time for the delivery of an alternative power supply to replace the energy generated for the grid.
With the last generator now shut the grid is adjusting to the loss of this station. Although the last generator has only just gone offline, sources have said that this is going to have an impact on the electricity supply and prices. Australia is looking to move towards more renewable energy. Instead of replacing older power stations with more fossil fuel-powered stations, sites like Liddell are going to be reformed into renewable energy sites.
What does this mean for energy prices?
Whilst the power plant had only been generating around half of its capacity for some time, this did amount to around 10% of NSW electricity. After Liddell went offline the energy prices rose to the highest point, they had been all quarter. This was due to other units being offline as well as wind generation being low, however, the market was taking this as a new norm since Liddell’s closure which means prices could rise accordingly.
What is the energy market’s reaction to this?
Whilst the country is looking to move towards different, cleaner electricity generation, having a power station as backup ensures that demand does not outweigh supply as renewable electricity is not always completely reliable.
Having coal-fired power stations to back up renewables when generation is low is key to not running into a supply and demand issue. However, with the Liddell power station now closed the country could find itself running into more issues such as a lack of supply to meet demand.
Although officials say that they expect to have sufficient new-generation supplies, these could be stretched when it comes to summertime.
What effect could this have on business energy?
Supply and demand issues can cause numerous issues for energy consumers, from higher prices to possible blackouts. The effects of big power stations such as Liddell closing could have implications on energy for households and businesses. Although Liddell produced a lot less electricity than its original capacity this could still have effects on the grid.
Your business should be aware that power plant closures can cause volatility in the energy market which could push wholesale prices up. To avoid having to sign your next contract when energy prices are at their highest, it’s best that you remain aware of these price factors. However, keeping on top of the energy market requires time and resources your business might not have.
Luckily for you, at Resolve Energy we have a team of energy consultants that can find the best energy deals for you and suggest the best time to sign your next contract. Why not get in touch today or get a free quote to see how much you could save?
If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.
