Australia’s largest generator urges no coal in clean target

Bloomberg

Australia’s largest power generator, AGL Energy Ltd., has urged the government to exclude coal from its planned clean energy target and said there is no appetite among private investors to fund new coal-fired power plants. AGL, which sources 77% of its electricity generation from coal, said including the fossil fuel in the target would send wrong signal for industry, which should prioritize more low-cost, efficient clean energy alternatives.
“The danger is you convince yourself that you see coal in your future and therefore if it doesn’t happen and the markets don’t deliver it, the government may step in and do it,” AGL Chief Executive Officer Andy Vesey said in an interview. “The industry is not going to invest in things that don’t make sense.”
Australian Deputy Prime Minister Barnaby Joyce has indicated support for the government taking an equity stake in any new coal-fired power station, claiming lenders are willing to finance fossil fuel-based electricity generation. Even so, affordability remains an issue with estimates a new high-efficiency, low-emissions “clean coal” plant may cost $1.7 billion, according to Minerals Council of Australia.
PM Malcolm Turnbull appeared to backtrack on idea of government committing equity to any coal plant at a Melbourne conference. “It’s always better if the market delivers all of these solutions,” Turnbull said. A review by Australia’s chief scientist, Alan Finkel, recommended a clean energy target be adopted after 2020, under which a percentage of power would be generated from low-emissions sources, encouraging gas, renewables and potentially carbon capture and storage.