AGL announces early closure of Torrens Island B

Torrens Island Power Station (Torrens A)
Torrens Island Power Station (Image: Shutterstock)

AGL Energy has announced it will close the Torrens Island ‘B’ Power Station on June 30, 2026, and that it will continue to progress the transformation of its Torrens Island site into a low-carbon industrial energy hub.

“This decision follows careful consideration and extensive consultation with stakeholders, including the South Australian Government. This has been driven in part by the planned completion of the Project EnergyConnect interconnector between South Australia and New South Wales in mid-2026, which will further impact gas-fired generation in South Australia and as a result the economic viability of the power station,” the company said in a statement.

Related article: AGL to study thermal energy storage at Torrens Island

The Torrens Island ‘B’ Power Station commenced operations in 1976 with a nameplate capacity of 800MW, providing South Australia with both electricity generation and grid ancillary services. The first of the four generating units (“B1”) was mothballed in October 2021; both B1 and the remaining three units will be retired on June 30, 2026.

AGL said it was “strongly committed to working with its people, in conjunction with unions and government to help transition and further develop the skills and capabilities required for new and existing energy industries as Australia’s energy system transitions to a low-carbon future”.

Related article: AGL breaks ground for Torrens Islands battery

Over the past four years, AGL has invested $475 million in major energy projects on Torrens Island, including the 210MW Barker Inlet Power Station, which opened in 2019, and the 250 MW Torrens Island battery, which is expected to be operational mid 2023—providing crucial firming capability and system security to the grid. AGL has also recently announced a feasibility study into the development of a green hydrogen facility at Torrens Island.

“Torrens Island will continue to play a crucial role in AGL’s current energy requirements and future generation plans as the site is transformed into an integrated industrial Energy Hub, with the potential to drive new investment, create new job opportunities as well as the expansion into new markets including hydrogen and green energy,” a spokesperson said.

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