AGL Energy said on Thursday that it had effectively bought the 2,000W Liddell coal-fired power station in the Hunter Valley for zero dollars.
The give-away by the NSW government – which completed the sale on Wednesday – was revealed by a triumphant AGL Energy while announcing its annual results.
Liddell, which was commissioned in the early 1970s and is located adjacent to a lake of the same name near Muswellbrook – is being purchased as part of the 4,600MW Macquarie Generation portfolio – the last major business to be sold by NSW – for a total of $1.55 billion.
AGL Energy considers this to be a bargain basement price. Just the value of the generators’ long term contracts for cheap coal supplies is worth $768 million, because it will deliver it a huge cost advantage over its competitors.