AGL seeks investors for back-up gas-powered plant and battery to cut risk of blackouts in SA
SA’s biggest energy generator says it could have a new gas plant and battery system at Torrens Island in about two years, to cut the risk of more blackouts and mass electricity outages hitting the state.
- Port Augusta power station plans abandoned
- Blackout could hit during fire-danger season
- BHP: Jobs, investment at risk over unstable power supply
SOUTH Australia’s biggest energy generator says it could have a new fast-action gas plant and battery system up and running at Torrens Island in about two years, a development that would reduce the risk of more devastating blackouts and mass electricity outages hitting the state.
AGL chief economist Tim Nelson has told The Advertiser the project, which would cost about $300 million, could deliver up to 400MW of new generation and would help solve some of SA’s power reliability problems and be a test case for other states as they moved to cut carbon emissions.
Last week, 200,000 SA homes and businesses lost power as 200MW of supply from Victoria was unexpectedly lost and local generation was unable to rapidly respond to fill the gap.
AGL’s open cycle gas turbine planned for Torrens Island would be able to ramp up within minutes to meet changes in electricity supply and demand.
It would be paired with new large batteries that could immediately release power to stabilise the grid as the turbine fired up.
Mr Nelson said the company would produce an energy security blueprint in coming weeks and seek investors for the project, which could include government and superannuation funds.
“We’re seeking to create an opportunity for investors that have a very long-term view to invest directly in these types of assets,” he said.
“As we move into the future, with high proportions of renewables in the system, we’re going to need complementary firm (baseload) capacity.
“The more capacity you’ve got in the market that can provide that instantaneous quick response, it increases the resilience of the system ... so it can ride through, more effectively, disturbances.”
The new turbine would be built adjacent the company’s ageing 1280MW gas plants at Torrens Island, which Dr Nelson warned needed new investment to ensure their ongoing reliability.
He said the company was doing “everything possible” to ensure they were on-call and reliable for summer, the first without the Port Augusta coal station, when power demand will surge.
“But it (Torrens Island) is an old power station and that’s why we’re encouraging our customers and the Government to come together and think about some of these innovative proposals for financing new infrastructure,” Dr Nelson said.
“Relying on aged infrastructure for these peak demand events does carry risk.
“It’s risk that’s borne by AGL and the community more broadly.”
Treasurer Tom Koutsantonis said the Government was using a bulk public service electricity purchase contract to encourage more competition into the state’s gas and energy markets.
“The biggest problem for generation in this country is the affordability of gas,” he said.
“All the price signals being put in the National Electricity Market right now in SA are for a new generator, because prices are high and the Government is intervening.
“It’s a condition where you should get new investment, and the first sign of that is AGL.
“What we need now is for the private sector to invest.”