Gas and electricity retailer AGL Energy Ltd said that it would not be developing its power plants soon because of weak market demand. The Australian firm also took a writedown of AUD 45.8 million of its assets. AGL explained that the demand for electricity was weak because the economy had slowed down and prices had risen. The popularity of solar power as alternative energy also contributed to the slow demand.
In a phone interview to Bloomberg, AGL Energy Managing Director Michael Fraser said, "There are a number of projects we've been working on for some time, and in short, we don't see those being developed any time soon."
The abundance in the electricity market had also affected the value of the Liddel and Bayswater coal-fired plants that had been put up for sale by owner Macquarie Generation. Fraser would also not say whether AGL would be interested in submitting a bid for the plants. A confidentiality agreement prevented him from further divulging details. He told Bloomberg, however, that "there's plenty of supply in the market at the moment, so it's a question of value, and it's a question of price."
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