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Mothballing of South Australian generating units deferred

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AGL Energy
06 June 2016

AGL today announced that it will defer the previously planned mothballing of four generating units from its Torrens Island power station in Adelaide.

AGL Torrens is a natural gas fired power station consisting of eight generating units with a total capacity of up to 1,280MW.

In December 2014, AGL announced that four of the older units, known collectively as ‘A station’ and with a capacity of approximately 480MW, would be taken out of service by 2017, based on the market outlook for South Australia.

Announcing the decision, Executive General Manager Group Operations, Doug Jackson, said the change in market conditions in South Australia warranted the decision.

“As a result of the recent retirement of other baseload generation assets in South Australia, market conditions have changed to the extent that there has been a significant tightening of supply to the market.

In deferring the mothballing of A station, AGL will continue to play a key role in maintaining South Australian security of energy supply.

AGL will conduct annual reviews of market conditions to determine future plans for A station.

Although A station is an ageing asset, we will invest appropriately to ensure it can continue to operate safely and efficiently to support our South Australian consumers.

Over the coming period AGL will discuss with its employees the implications of deferring the mothballing of A station.
AGL will also continue to assess opportunities for new generation capacity within South Australia to support our transition to a low carbon generation fleet, subject to relevant market signals."