Two Major Natural Gas-fired Power Projects Halted in Western Australia

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Researched by Industrial Info Resources Australia (Perth, Australia)--A gas-fired power project planned for Three Springs, Western Australia, has been put on hold by its proponent company, which cited a collapse in energy demand from consumers and an increase in electricity prices.

Power giant ERM Power Limited (Brisbane, Australia) originally proposed a 330-megawatt (MW), low-emission, open-cycle gas turbine (OCGT) facility called Three Springs Power Station, to be located 3 kilometers (km) outside the town of Three Springs. The facility is intended to produce enough electricity for approximately 80,000 homes per year.

The ERM Power representative for the project said work had begun in 2010, when increasing demand suggested new base-load generation would be needed by 2016. However, falling demand and increases in costs means that the proposed plant is unnecessary until later in the decade.

The project received environmental approval from the Western Australian government in September 2011, with the finalization of fuel supply and electricity off-take agreements and final investment decision still pending. ERM power will continue to monitor the market, and the company will ensure the project is ready for the Western Australian Energy Market when required.

Energy generator AGL Limited (Sydney, Australia) shelved plans to expand the massive Torrens Island Power Plant in South Australia for a similar reason. The project was planned in 2009 to meet power needs at times of highest demand, generating 600 to 800 MW of power. AGL wanted to increase peaking generation at the plant by more than half, to assist with summer air-conditioning demands; however, falling electricity prices and demand, associated with higher capital costs, have led AGL to put the project on hold indefinitely.

AGL currently operates 1,280 MW at the Torrens Island Power Station. Eight units each generate approximately 120 MW of electricity.

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