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Alinta CEO: Energy prices have fallen by 33% and will continue to drop

Alinta Energy’s CEO Jeff Dimery says energy prices have fallen by over 30% already and will continue drop in the coming months.

With the building of gas-fired power stations and investment in solar and wind, wholesale prices will take a downward turn Ross Greenwood says.

Alinta’s boss tells Ross there’s a saying in the industry, “high prices solve high prices”.

“When you see high prices people will rush to invest and build new capacity to supply a market.

“We’ve been through the highest price part of the cycle.

“The price has come off from its highest by about 33% already and it is expected to fall a bit further over the next 12 months or so as demand starts to pick up again.”

When it comes to AGL’s rejection of their bid to acquire the Liddell coal-fired power station, Alinta’s boss says the company’s “moving on”.

Former Prime Minister Tony Abbott floated the idea of the government compulsorily acquiring the station and reselling it to Alinta, a suggestion Mr Dimery isn’t holding out hope for.

“I don’t think that’s going to happen.

“We made the offer, the offer was rejected and… we’re moving on and we’re looking for other opportunities out there to either build or buy power stations to deliver affordable energy to the Australian public.”

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