Latrobe Valley Express Thursday 1 April 2021

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THURSDAY, 1 APRIL, 2021

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MOSTLY SUNNY

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CALL FOR MORE BLOOD PAGE 8

We’ve got our eyes on you First Constable Tim Buckler will be one of the many police officers on high alert throughout the Latrobe Valley across the Easter long weekend. FULL STORY - PAGE 6

SPLIT DECISION ENERGY giant AGL has not ruled out ramping down or “mothballing” its coal units to meet market demand and cutting worker overtime as part of its plans to split the company in two. AGL announced on Tuesday it was planning to divide itself into two separate businesses, one to be dubbed New AGL - a carbon-neutral business focusing on energy retail. The other business, to be called PrimeCo, would hold on to AGL’s coal

and gas fleet, accounting for 20 per cent of the National Electricity Market, with 1600 megawatts of wind in the pipeline. AGL chief executive officer Brett Redman said the changes would not affect the day-to-day operations at Loy Yang A, and stressed it would not accelerate any early coal closures. Mr Redman said Loy Yang A would continue to be “the low-cost backbone of the NEM”. He said there were still plans to keep investing “tens of millions” of dollars each year to maintain Loy Yang A to

“run it for the long haul” out to the end of its technical life in 2048. However, he also left the window open, stating that the company was “responsible for responding to market forces”. “We have never shied away from the fact that if our customers want a different product, it will affect our pathway forward. But we will run Loy Yang to no later than 2048,” he told The Express. AGL had cited cutting 150 million dollars in operating costs for the 2022 financial year, in order to match

spending to market conditions as wholesale electricity prices were in a slump. In an investor briefing on Tuesday, the company flagged lowering generation to better manage the “duck curve”’ of renewables coming online which could include considering “to mothball units”. “Loy Yang A was built with the idea it would be turned on steady and full without any deviation. Today, we are thinking about flexing up and down as the market requires,” Mr Redman said. Continued on page 2

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