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AGL scales back construction of generation assets


 AGL has halted the development of a gas-fired power station in Dalton, NSW. The energy gentailer states that market conditions, including decreasing demand, played a part in the decision. Although they explicitly stated that the project was not scrapped and may go ahead in the future.

 The asset was stated by AGL to have a 500MW capacity, with a possible expansion to 1000MW (1GW), and was said to be required in a time of rising electricity demand in NSW. The reality is the converse and the need for another peaking asset in the NSW energy mix looks redundant.  

 In the company’s 2013 Earning Guidance to investors before its AGM, AGL has also announced a cessation of investment in power generation in SA, including renewable energy. This puts the Worlds End and Barn Hill Wind Farms in jeopardy and their combined capacity of 303MW. AGL linked this to what is deemed an ‘adverse’ decision of the Essential Service Commission of South Australia (ESCOSA) to reduce the wholesale price of electricity by $27.20 per MWh. It states that this has made investment in the state unattractive.


Read press release here