Prime Minister Malcolm Turnbull has announced the Federal Government is trying to delay the closure of the Liddell coal-fired power station in the New South Wales Hunter Valley for at least five years.

Key points: AGL plans to close the plant in 2022 as it reaches more than 50 years of operation

AGL plans to close the plant in 2022 as it reaches more than 50 years of operation Malcolm Turnbull gave no indication of what the Government would offer to keep the station open

Malcolm Turnbull gave no indication of what the Government would offer to keep the station open Greens MP Adam Bandt has labelled the move "criminal"

Mr Turnbull has given no details about what the Federal Government would be prepared to offer Liddell's operator, AGL, to delay shutting down the power station.

AGL plans to close the plant in 2022 as it reaches more than 50 years of operation.

Mr Turnbull also used Question Time in Parliament to warn of looming power shortages, particularly in Victoria and South Australia.

He has told Parliament the energy market operator's annual report shows the national market is vulnerable, especially in South Australia and Victoria.

But Mr Turnbull said there would be more pressure in 2022 when the Liddell power station is due to close.

"The Energy Minister and I are already in discussions with the owner of Liddell, AGL, about how we can ensure that that power station stays in operation for at least another 5 years after 2022," he said.

The Liddell power station is the oldest coal-fired station in Australia, commissioned in the early 1970s.

Australian Energy Council figures show it has a capacity of 2,000 megawatts, which makes it the third-biggest coal-fired station in Australia.

But AGL has cast some doubt on whether the plant can feasibly remain open.

"Keeping old coal plants open won't deliver the reliable, affordable energy our customers need," AGL CEO Andy Vesey said on Twitter.

"We're getting out of coal. We committed to the closure of the Liddell power station in 2022, the end of its operating life."

The company has also spruiked in advertisements in recent months that it is "getting out of coal".

Mr Turnbull said he spoken to Mr Vesey about the matter.

"He says AGL wants to get out of coal, but he said that he is prepared to sell to a responsible party and that's what we are talking about" he said.

"I'm not particularly interested in who owns Liddell."

Mr Turnbull said it was unlikely the Federal Government would buy the plant and that he thinks "it's better that the private sector owns generators like that".

Greens MP Adam Bandt labelled the Government's moves to keep Liddell open "criminal".

"To meet the climate targets set in Paris, Australia needs to start closing one coal-fired power station every year," he said.

"Instead, the Liberals are criminally trying to keep these polluters open and Labor looks ready to aid and abet them."

Tough summer ahead for power networks in SA and Victoria

The Australian Energy Market Operator (AEMO) is warning of more short-term problems for electricity networks in South Australia and Victoria, as generation capacity is put to the test.

In its annual report on the state of the national electricity market, released on Tuesday, it warned of increased vulnerability to climatic events, a tight supply-demand network, and the possibility of load-shedding in coming months.

Without targeted actions, the risk of load-shedding in South Australia is rated between 26 and 33 per cent, while in Victoria it is 39 to 43 per cent.

The Liddell power station is due to close in 2022. ( Reuters: Mick Tsikas )

Mr Turnbull seized on the report's warnings.

"We've seen today another report highlighting the failure of Labor's experiments with energy," he said.

"What is shows is a sorry tale of Labor's mismanagement, particularly in South Australia and Victoria.

"And it's left our national electricity market vulnerable."

The report states that measures being taken in South Australia to add generation capacity, including diesel generators and battery storage, will help alleviate the risk.

It also indicates AEMO also plans to use energy reserve provisions, where it essentially buys reserve power in the form of additional generation or pays for demand to be reduced, to reduce the risk of load-shedding.

But the report also warns of the potential for significant load shedding in South Australia and Victoria if generation from renewables does not meet expectations, or coal-fired power plants suffer reduced capacity.