Already, the impact of reduced demand, growing renewables, and rooftop solar, is causing a decline in output in coal generation, bringing capacity factors down sharply, particularly for
black coal generators.
The opportunity for the purchase was presented by a confluence of events — the Fukushima nuclear disaster last year, the generous support for brown coal generators in the government's carbon pricing package, which will see Loy Yang A alone get more than $ 1.2 billion in cash payments and free permits, and the anticipated sharp cost increases for NSW
black coal generators as their subsidized source of coal comes to an end.
Fukushima presented an opportunity for AGL Energy because it meant that Tepco, the plant's operator, was no longer in a position to invest in Loy Yang A and was a distressed seller of its one third stake in Loy Yang A. AGL Energy, which already had a 32.5 per cent stake in the plant, says Loy Yang A will remain one of the lowest cost generators in the NEM because of cheap coal at the doorstep — it pays just $ 6 / t for brown coal, which would give it a massive advantage over
black coal generators in NSW, which are facing costs of $ 45 / t and will go higher in future years.
Stanwell said it is looking forward to the removal of the carbon tax, which it said cost $ 355 million in its first year (state owned
black coal generators did not get compensation).
Not exact matches
Between all of your research into new resource buildings and other things, then, you have to consider increasing the range of your
generator and the amount of heat it can output, but for each new increase the amount of
coal the
generator consumes is vastly increased, straining your ability to get the
black fuel out of the ground fast enough.
TRUenergy also owns the Mount Piper and Wallerawang
black coal - fired
generators in NSW; gas - fired generation at Tallawarra in NSW, at Hallett in South Australia, and Newport and Jeeralang in Victoria.