Delta powers on as Gentrader transaction approaches

Delta Electricity became Australia’s largest capacity electricity generator in the country with the opening of the Colongra power station in NSW in December 2009.

The $500 million, 667 MW gas-fired power station is a low emission facility that can be turned on in minutes to meet demand spikes for electricity by householders, industry or community facilities.

“With the completion of this major energy infrastructure project we have lifted Delta’s total generation capacity to more than 5000 MW,” Delta Electricity acting chief executive, Greg Everett said.

“As an industry leader, we have improved the performance of our portfolio of power stations to operate at, or better than, standards which have been set for (a) plant of its age and type.

“We built and now operate, with the CSIRO, a pilot carbon capture facility at Munmorah Power Station, one of four projects in the Asia Pacific partnership program.”

Delta has achieved development consent for the installation of gas plants at Bamarang near Nowra and Marulan near Goulburn, NSW. Delta also owns 50 per cent of Australia’s largest baseload renewable energy power stations in the northern NSW sugar mills.

The power station opens as the NSW Government plans to commence retail due diligence as part of large market reforms.

In February, NSW State Government Treasurer, Eric Roozendaal confirmed due diligence for the NSW Government’s retail electricity and Gentrader transactions will commence towards the middle of 2010.

The NSW State Government remains committed to the delivery of its electricity reform objectives and is “confident of achieving a good outcome for taxpayers, having received expressions of interest from a strong field of qualified and capable domestic and international bidders”, according to a recent statement.

To ensure an efficient process for bidders, the energy reform transactions and due diligence for both retail and Gentrader assets are being aligned and executed simultaneously.

The transactions involve three large electricity retailers and the creation of five bundles of Gentrader contracts.