Shutdown of Australia’s AGL coal-fired power plant extended until September

0

The logo of AGL Energy Ltd, Australia’s second-largest electricity retailer, adorns its headquarters building in Sydney, Australia, February 8, 2017. REUTERS/David Gray

Join now for FREE unlimited access to Reuters.com

Register

  • Loy Yang A unit shutdown extended from 6 to 8 weeks
  • Prolonged interruption due to electricity crisis
  • Energy Retail CEO Designate Corbett Steps Down

MELBOURNE, June 10 (Reuters) – AGL Energy (AGL.AX), Australia’s biggest power producer, said on Friday it expects a unit that has been down since April in one of its power plants restart at the end of September, more than a month later than before. reported, worsening the country’s electricity crisis.

The outage at Loy Yang A power station in the state of Victoria is one of many coal-fired power stations in eastern Australia, some due to technical issues and others due to fuel supply issues. coal, which has caused coal generation to fall by 25% in a market that normally relies on coal for nearly two-thirds of its electricity supply.

This drove up the demand for gas-fired generation and, in turn, drove up local gas and electricity prices, due to record world coal and gas prices.

Join now for FREE unlimited access to Reuters.com

Register

AGL previously expected the Loy Yang A unit to return on August 1 and now expects it to return in the second half of September.

“The extended outage is driven by global supply chain issues and the availability of specialty materials,” AGL said in a statement.

He said he would give an update on the financial impact of the extended outage and update earnings guidance for the year to June 2023 only later this year, in part due “to the current market volatility.

AGL last week abandoned plans to split the company into an energy retailer and a coal-fired generation company and its chairman and chief executive agreed to step down, under pressure from its biggest shareholder, the tech billionaire and climate activist Mike Cannon-Brookes.

On Friday, AGL said Christine Corbett, who was to lead the energy retail business as part of the spinoff, had also decided to step down. His role as Chief Customer Officer will be taken over by Jo Egan, who previously led the company’s expansion into products such as data and telecommunications.

AGL reiterated on Friday that a strategic review on the company’s future would not be completed until September.

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Sonali Paul; Additional reporting by Riya Sharma in Bengaluru; Editing by Sam Holmes

Our standards: The Thomson Reuters Trust Principles.


Source link

Share.

About Author

Comments are closed.