AGL will today begin building the $295 million Barker Inlet Power Station in South Australia.
AGL CEO Andy Vesey will break the ground to launch the project at a ceremony at the site at midday today.
Mr Vesey said the plant will provide increased reliability and security for the people of South Australia and will be operational in the second half of 2019.
“We’re investing $295 million in constructing a 210MW gas plant using reciprocating engines, which will deliver more reliable, dispatchable power to the National Electricity Market,” he said.
“This high efficiency, flexible plant will be in place before other capacity is retired so we can deliver an orderly energy transition.”
The new power station will replace two of the four Torrens A turbines which AGL will progressively mothball from July 1, 2019.
The four Torrens B turbines will continue to operate as normal.
“The Barker Inlet Power Station units will be able to ramp from zero to full capacity in five minutes, and are 28 per cent more efficient than the Torrens A Station units they will replace,” Mr Vesey said.
“This will deliver gas savings of the same order, reducing costs and lowering emissions.
“As we move towards the staged mothballing of the first two units of Torrens A, we are delivering new investment in modern, fit-for-purpose generation which will supplement and replace the plant coming to the end of its useful life.”
The ceremony marks the 50th anniversary of the completion of Torrens Island Power Station.