AGL sees coal power resurgence

Date May 2, 2013 - 1:49PM 39 reading now


Brian Robins

AGL has predicted a swing back to polluting coal-fired power generation over the next few years due to a low carbon price that will make gas less competitive.

‘‘I expect a resurgence of coal-fired power,’’ AGL chief executive Michael Fraser told a Macquarie Securities conference today.

This is because the anticipated decline in the carbon price from 2015 will take the pressure off coal prices, listing its competitive position.

Gas will also be hampered by large price rises which are now occurring as a number of large gas export projects are being developed in Queensland.

‘‘You can see Tallawarra backing right off in NSW,’’ Mr Fraser said. Tallawarra is a large gas-fired power station near Wollongong, operated by Energy Australia.

Mr Fraser said intense competition in retail energy markets, coupled with weak wholesale electricty prices, was continuing to weigh on earnings, which would come in at the ‘‘lower half’’ of the net profit after tax guidance given earlier of $590 to $640 forecast for the financial year ending June 30.


Read more: http://www.smh.com.au/business/agl-sees-coal-power-resurgence-20130502-2iuul.html#ixzz2S6Ywu0E9

Definitely nuclear is the way to go. Safer than ever and we are the safest country to position it.

Bring it on, sick of all the hand wringing doom dayers.