The anticipated closure of Bayswater power station could be revised forward again if it became unviable to operate the plant due to increased amounts of renewable energy entering the grid, AGL has confirmed.
The 2640 megawatt generator was initially slated to close in 2035, however, AGL said on Thursday that it now estimated Bayswater would close between 2030 and 2033.
AGL also announced its coal-fired Loy Yang power station in Victoria would close three years earlier than expected.
The plants have a combined capacity of 5000 megawatts, which represents about 8 per cent of generation in the national electricity market.
AGL chief operating officer Markus Brokhof said while the company believed the new window for Bayswater's closure was realistic, it was possible this could be brought forward again due to the rapid growth of renewable generation across Australia.
"[The situation] is always changing. If the government wishes to bring this forward (from 2030) then there will need to be an agreement with us in place," Mr Brokhof said.
"But we are not stubborn. If the market is showing us and if there is sufficient new capacity coming on, then for us it would be an economic decision not to continue (with Bayswater). But at the moment our window is 2030-2033."
Thursday's announcement came as part of an update on the company's demerger plans.
AGL, which remains the country's largest polluter, plans to split into two listed entities - energy retailer AGL Australia and electricity generator Accel Energy - by June 30.
The two entities have now been assigned emissions reductions targets, putting them on course to reach net zero in coming decades.
Mr Brokhof acknowledged the pressure on companies such as AGL to accelerate their transition from coal-fired to renewable energy was steadily increasing.
"The announcement at Bayswater, on the one hand, is related to our commitment to transition faster out of our carbon footprint. We recognise that society demands this.
The NSW government also has a clear plan to phase out coal by 2030. This is our response to this," he said.
The company expects a significant proportion of its existing coal-fired power generation workforce will eventually work on renewable energy projects.
AGL signed a memorandum of understanding with Fortescue Future Industries in December to conduct a 12 month feasibility study into the production of green hydrogen as part of the Hunter Energy Park. It is estimated the green hydrogen project has the potential to create about 1000 full time jobs.
"It's not all about hydrogen. We have a substantial development pipeline of projects around the Hunter that includes wind, solar, thermal storage and pumped hydro," Mr Brokhof said.
But Greenpeace Australia senior campaigner Glenn Walker described AGL's coal exit and transition strategy as "tardy".
"... by continuing to cling to coal all the way to 2045 for Loy Yang A, and 2033 for Bayswater coal power station, AGL is delaying the transition of the country's key energy regions," he said.
"The Latrobe and Hunter Valleys, with their skilled energy workforces, are the best placed regions in the country to capitalise on the renewable revolution, but coal companies like AGL must commit to a timely transition. "
Liberal Candidate for the seat of Paterson Brooke Vitnell said AGL's decision to bring forward the closure window for Bayswater showed the importance of building a 660 megawatt gas-fired peaking plant at Kurri.
The $610 million Snowy Hydro project is designed to ensure reliability of supply to industry as well as energy affordability following the exit of coal-fired generation.
"Anything that creates further uncertainly into the energy market such as untested or high cost generation technology is a threat to those jobs," she said.
