AGL Energy flags seven month outage at Victoria’s Loy Yang power plant
Source: The Sydney Morning Herald
11 June 2019
The extended outage of one unit at Loy Yang A, an AGL Energy-owned power station in the Latrobe Valley, has highlighted the state’s reliance on coal generation, and reinforced Victoria’s renewable target of 50% renewable generation by 2030.
Unit 2 (550MW) at Loy Yang has been out of service since 18 May, when it experienced an electrical short that damaged the generator. Following a technical assessment, it is expected that the unit will take 7 months for repairs, coming back into operation in December 2019, longer than the initial expectation of 2-4 months repair time. AGL expects this to impact their earnings for FY20, estimating a $60mil to $100mil reduction in underlying profit.
This capacity loss increases risk for the grid during periods of high demand, namely the peak summer periods, where meeting supply to demand has been a challenge. Victoria and South Australia have already faced rolling blackouts this year, during a January heatwave when three coal power plants, including Loy Yang A, were out of commission.
AEMO has stated that the outage “has no immediate impact on supply levels”, but they are working closely with AGL, and will notify the market of any material changes. According to the Victorian government, the breakdown of the Loy Yang A unit has reinforced its target of 50% renewable energy by 2030, which aims to reduce the states reliance on fossil fuels.
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