AGL EYES SOLAR
Energy giant looks at deal to manufacture panels at ex-power station
AGL Energy is exploring using the site that once housed one of NSW’s largest coal generators to manufacture solar panels after striking a deal with technology company SunDrive.
The company last year shuttered its Liddell coal power station, and it plans to repurpose it and the site for the Bayswater coal generator – scheduled to close no later than 2033 – into a renewable energy hub with zero emission generators and associated industries.
As Anthony Albanese pledged $1bn to build out Australia’s solar manufacturing capacity, AGL said it had entered into a preliminary agreement with SunDrive to explore establishing a manufacturing plant at the site.
The two parties will now work to outline key infrastructure and engineering requirements and identify the regulatory approvals and licences necessary for the development, construction and operation of a solar PV manufacturing facility in the Hunter Energy Hub Advanced Manufacturing Precinct.
The agreement also includes an option for a possible offtake agreement where AGL purchases SunDrive’s solar panels for its customers.
Announcing the partnership alongside the Prime Minister, AGL chief executive Damien Nicks said the agreement had the potential to help create a new solar manufacturing industry in Australia.
“Our vision for the Hunter Energy Hub is to create a low carbon integrated energy hub –
Our vision is to create a low carbon integrated energy hub Damien Nicks
AGL chief executive
designed with circular economy principles – that brings together industries that can make a positive contribution to the energy transition, including renewable energy generation, grid-scale batteries, green advanced manufacturing and associated industries,” Mr Nicks said.
The agreement – albeit preliminary – is a boost to federal
Labor’s plans to rapidly develop a solar industry. Despite Australia boasting the highest uptake of solar panels in the world (with one in three households installing panels), only 1 per cent of the panels were made in Australia.
Labor is hoping to accelerate the nation’s transition away from fossil fuels, and an increased deployment of rooftop solar will ease the burden of the new generation capacity required.
Labor has set a target of having renewable energy generate more than 80 per cent of the nation’s power by the end of the decade.
But progress on deploying large-scale renewable energy generation has been sluggish amid pockets of local resistance and high inflation, and authorities hope rooftop solar can provide added impetus.
Still, there is uncertainty about whether Australia can sustain its rapid rate of growth in rooftop solar. While many households have bolted on solar, a cost-of-living crisis means it is often only available to those with more financial means.