A new electricity network could be the answer to lost baseload power if AGL goes ahead with the closure of Liddell power plant in 2022.

It involves building an electricity interconnection between New South Wales and Queensland, costing short of $500 million.

This comes as state and territory energy ministers prepare to debate the Federal Government’s energy guarantee tomorrow in Melbourne.

Transgrid CEO Paul Italiano tells Chris Smith he believes they can bridge the gap with the proposed plan.

“I look at it like tomatoes.

“If you can grow tomatoes in Queensland cheaper than you can grow them in New South Wales, if we can transport them down and put them on the shelf here at a lower cost, then why shouldn’t the consumers in New South Wales benefit from that?”

Mr Italiano says despite a rivalry between the states, “we are one country”.

“Our economy, as a nation, works best when we get access to the resources that are available at the lowest cost.

“Yes there’s some rivalry between Queensland and New South Wales, but ultimately the lowest cost for electricity is what we’re all interested in.”

Listen to the full interview below