Hydro Tasmania is making changes to the operating regime of the Tamar Valley Power Station in preparation for the decommissioning and sale of the combined cycle gas turbine. The Tamar Valley Power Station and associated assets were transferred from Aurora Energy to Hydro Tasmania in June 2013, including a significant amount of debt. Since that time, Hydro Tasmania has optimised the power station within its broader generation portfolio. It has not used gas-fired generation when there is ample hydro generation or when imports from Victoria are cheaper.
The combined cycle gas turbine (CCGT) is one of five gas turbines at the power station, and it is designed to operate as baseload plant. Due to changes in the market since the power station was designed and commissioned, it is not cost-effective to use the CCGT for baseload energy generation.
“Since the decision was made to purchase and build the plant in 2008, market conditions have changed significantly. Hydro Tasmania has undertaken extensive modelling and confirmed that the CCGT is not required for energy security,” the state-owned enterprise said in a statement.
“The business has advised workers at the power station of the changes and their implications. Employees are being appropriately supported and relevant unions have been advised. We are working to maximise redeployment opportunities within Hydro Tasmania to minimise job losses.”
Four other (open cycle) gas turbines at the power station will continue to be operated to provide peak supply.