AGL to start closure of Torrens Island power station B, but says lights will stay on in SA

SA’s biggest power station is starting to close but the government says the lights will stay on in the state as cheap renewables take over.

The closure of South Australia’s biggest but ageing Torrens Island power station is stepping up, with AGL to start mothballing its “B” plant.

Lower prices it can charge to generate power have made the plant uneconomic, AGL said. Prices have been falling because of competition from renewable energy and AGL’s own more efficient gas-fired Barker Inlet power station.

Despite the mothballing, the lights would stay on in SA, the company said.

“We will continue to provide South Australians with access to reliable and affordable electricity,” AGL chief operating officer Markus Brokhof said.

In the 2019-20 summer, AGL had to delay mothballing its Torrens Island plant to ensure there was sufficient supply in SA and Victoria.

However, electricity supply would now be secure, Energy and Mining Minister Dan van Holst Pellekaan said the Australian Energy Market Operator had told him.

“As South Australia transitions to cheaper and cleaner energy the older, more expensive gas-fired power stations will progressively exit the market,” he said.

AGL’s Torrens Island power station.

Torrens Island has two plants – an “A” and a “B”.

Three of four units at the 240 megawatt “A” facility – built in 1967 – have already been mothballed and the last unit will follow this September.

AGL’s announcement means it now will start closing the 800MW “B” plant – built in 1976 – with the first unit to be mothballed from October.

Opposition energy spokesman Tom Koutsantonis said the move was a consequence of the Project EnergyConnect transmission line to NSW, which would leave SA “completely reliant on NSW and Victoria” for thermal power generation.

AEMO’s integrated system plan had slated Torrens B to continue operating until 2035-36.

The announcement comes as AGL proposes a corporate split, with many assets hived off to a new company called Accel Energy.

Accel would be the new owner of Torrens Island Power station but AGL would retain the adjacent new $295 million, 211MW Barker Inlet gas-fired power station and 250MW big battery which it expects to begin building later this year.

Mr Brokhof said there would be no job losses.