Australian power utility AGL Energy is set to develop a 210MW reciprocating engine power station in South Australia that will entail an investment of $295m.
The facility, dubbed Barker Inlet Power Station, will be located alongside the company’s Torrens Island Power Station site near Adelaide.
The new power plant will replace two of the four Torrens A turbines, which the company will gradually stop using them from 1 July 2019. The four Torrens B turbines will continue to operate as normal.
Construction of the new plant is anticipated to commence in the third quarter of 2017, with full operation in the first quarter of 2019.
AGL managing director and CEO Andy Vesey said: “Our decision to move ahead with this development reflects our long-standing commitment to our South Australian customers and our contribution to creating a secure energy system as the market transitions.
“Torrens A is now 50 years old. Our decision in June 2016 to defer its previously planned mothballing reflected the importance of maintaining security of supply in South Australia following the withdrawal at short notice of other thermal power stations.
“We are delighted that we are now able to confirm that Barker Inlet Power Station will be developed, improving reliability and security of supply in South Australia using modern, responsive technology that is more fuel efficient and less carbon intensive than pre-existing plant.
“This reflects our readiness to invest to support our customers’ needs as Australia’s electricity market adapts to a carbon-constrained future. We will continue to monitor the needs of the market and anticipate deploying further investment as opportunities arise.”