Power plan: Diesel power plant to be built at Barnawartha

Local and Chinese businessmen are preparing to build a diesel power plant at Barnawartha North. The plant will consists of 10 diesel fuelled generators covering 0.83ha.

The Barnawartha North Peaking Generation plant consists of 10 diesel fuelled generators covering 0.83ha.

A group of local and Chinese businessmen are preparing to install ten 17-tonne diesel generators next to AusNet’s Barnawartha North substation, to pump electricity into the grid when power prices peak.

Barnawartha North Peaking Generation Pty Ltd only expects to run the generators for about 200 hours annually, only turning them on when the wholesale price surges in response to shortages - which usually occur in the late afternoon and early evening.

BNPG has lodged a submission with EPA Victoria, which states the 10 megawatt capacity project meets the Australian Energy Market Operator’s call “for a four-fold increase by 2050 in the investment in new firming or peaking generation capacity”, such as the Barnawartha project.

“Short duration firming or peaking generation assets such as that proposed, seek to enable firm and affordable energy supplies for residential and business users and play a critical bridging role between anticipated baseload coal generation closures, ongoing demand growth and any shortfall in supply from renewable energy (wind, solar) and battery facilities.”

BNPG says the generators and diesel storage tanks will cover an area of just 0.83ha and are “expected to be operational for approximately two per cent of any given year, or approximately seven days in aggregate.”

“Fuel deliveries will be dependent on the actual generator operation, but on average typically 1 to 2 deliveries per month (to a 12m x 2.5m self-bunded storage unit)”

The site will also be capable of being remotely operated and continuously monitored.

BNPG is ultimately owned by budget energy retailer GloBird, founded by John McCluskey and funded by local and Chinese investors.

While construction of a diesel fuel plant may be counter to the federal and Victorian Government drive to build more renewables, energy analysts say the reality is more peaking plants fuelled by gas and or diesel will be needed.

“There will be more of these, as gas is difficult to come by and diesel can be stored on site,” one analyst said.

The Australian Energy Market Operator’s wholesale electricity market report for the first 11 days of June shows prices have ranged from minus $20/MWh in the middle of the day, when renewable power is abundant, to $402/MWh when the sun goes down.

Just this week Energy Australia announced a maintenance mishap at its Yallourn power station had forced it to shut down one of the plants four units.

As of Wednesday Yallourn was producing half its capacity, as solar and wind generation remained low.

The public has until July 2 to comment on BNPG EPA submission on the engage.vic.gov.au website.