The Morrison Government, with the Berejiklian Government, has today announced the establishment of a Commonwealth-led taskforce to consider options to deal with AGL's announced closure of the Liddell Power Station in NSW in 2023.

The Liddell Taskforce will look at all potential impacts of Liddell's closure, options for extensions or like-for-like replacement, and ensure affordable and reliable energy for NSW families and businesses.

AGL's decision to extend operations at the Liddell Power Station until April 2023 is a good short-term announcement.

The extension will ease tightness in supply over the next three summers, however the Morrison Government remains focused on the real challenge of ensuring enough reliable affordable generation to meet demand post 2023.

The Morrison and Berejiklian Governments are acting to ensure there is no repeat of the impact on the National Electricity Market following the premature closure of the Hazelwood Power Station in Victoria.

The closure of Hazelwood saw a significant increase in power prices and has greatly impacted the Victorian energy grid and the National Electricity Market more broadly.

Following the formal establishment of the taskforce within the Commonwealth Department of Environment and Energy one of the first steps was to invite the Berejiklian Government to participate.

Liddell has played an important role in maintaining the reliability of electricity supply in NSW for over 40 years, and it is important for governments to work together constructively on future energy supply and security.

The Liddell Taskforce will engage with a range of industry stakeholders and work with all levels of government, with a report and recommendations expected to be delivered by late 2019.

The Liddell Taskforce is part of the Morrison Government's continued commitment to improve the affordability, reliability and security of Australia's energy systems.