Australia's AGL to shut gas-fired power unit
Australian utility AGL plans to mothball one of the four operational units at South Australia’s largest gas-fired power plants owing to a decline in forward prices and the addition of new capacity in the market, it said on July 7.
The company said it had informed the Australian Energy Market Operator (AEMO) about its intention to mothball one of the four operational Torrens B units in October.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
“The decision follows the continued decline in South Australian forward prices and the volume of new capacity that has come into the market, creating challenging conditions that do not currently support the financial viability of operating all four generation units,” it said.
AGL CEO, Markus Brokhof said the company will continue to provide South Australians with access to reliable and affordable electricity. "We have assessed all publicly available information and are confident there is sufficient capacity available to AEMO to ensure system strength,” he added.
Based on the power station’s maintenance cycle, AGL had identified the B1 unit as the most appropriate to be mothballed and preserved for recall. The planned recall time for the mothballing will be six months, it said.
AGL will continue to operate the remaining three B units, along with the Barker Inlet power station and will review the decision should there be material changes to the market conditions.
At Torrens A, AGL has mothballed three units, with the remaining unit to be mothballed this September, with retirement planned for September 2022.