The Prime Minister is urging energy giant AGL to consider selling the Liddell coal-fired power station to interested buyers.

AGL is set to close the plant in 2022, and unless they replace the energy gap up to 200,000 homes across New South Wales could face blackouts.

But at this stage, they’ve refused a number of offers.

Liberal MP and Chair of the Coalition’s Backbench Energy and Environment Committee, Craig Kelly, tells Ben Fordham he is backing the sale of the plant to build a new coal-fired station.

While his proposed power station would cost more, Mr Kelly assures it will be more cost-effective.

“These new coal-fired stations will be slightly more than our old ones, but they will be a lot, lot cheaper than the options of using solar and wind and some type of storage.

“The only option that we have here in Australia, to do it the cheapest way, is through coal.”

Listen to the full interview below