AGL Energy Limited (AGL) announced on Friday the suspension of the first stage of its 1,000 MW Dalton power station in New South Wales.
According to a very brief statement from the company, economic viability of the project had been under review for several months due to market conditions.
The gas turbine based power station was to act as a peaking power facility to supply electricity to New South Wales during times of peak demand.
AGL’s original project page for Dalton power station stated:
“Over the next decade, it is predicted that rising electricity demand in NSW along with a change in the mix of generation sources as a result of the expansion of Renewable Energy Targets will substantially increase the need for rapid response “peaking” power generation within NSW.”
The rising demand hasn’t happened - in fact, quite the opposite.
According to a report from REC Agents Association (RAA) earlier this year, over the last three years electricity consumption in the eastern states’ National Electricity Market (NEM) had dropped by 3.2 per cent (6,565 GWh); with over half that reduction attributable to hundreds of thousands of solar hot water and rooftop solar panel installations, along with energy efficiency initiatives.
According to a Sydney Morning Herald article, electricity industry sources estimated more than 10 per cent of electricity demand in NSW was supplied by rooftop solar power systems during much of the daylight hours earlier last week.
The Dalton power station suspension adds to a continually growing scrap heap of gas and coal-fired projects around Australia. Elsewhere in New South Wales, the end of coal fired generation at Munmorah power station has been confirmed. In Queensland, Stanwell Corporation Limited is taking two units at its Tarong facility in Queensland offline soon and last week, it was announced some of Victoria’s Yallourn Power Station’s generation capacity would be mothballed.
