The Bayswater and Loy Yang A power stations, operated by AGL, will close earlier than originally planned.
Bayswater will now close between 2030 and 2033, earlier than its original close date of 2035.
Loy Yang A is now scheduled to close between 2040 and 2045 rather than its original close date of 2048.
The early closure of these two generators will leave a considerable gap of close to 5,000MW of generation in the National Electricity Market (NEM).
While this announcement is a commercial decision and AGL has complied with the minimum 3.5-year notice period, the exit of such a considerable amount of reliable generation is a concern for the continued reliability and affordability of the system.
AGL said that the delivery of new, timely, replacement dispatchable capacity will be critical in keeping prices low and the lights on.
A statement from the Federal Minister for Industry, Energy and Emissions Reduction, Angus Taylor, said that AGL’s long-term plans for developing the sites of these generators as industrial energy hubs, and their plans for investment in new dispatchable capacity are welcome.
Mr Taylor emphasised that it is critical that private sector announcements translate to actual investments.
The Federal Government will closely monitor and model the impact of these closures, to hold industry to account on the dispatchable capacity needed to ensure affordable, reliable power for consumers.