28 February, 2024
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AGL to shutdown South Australia gas plant


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Power company AGL Energy will close its gas-fired Torrens Island B power station in South Australia in 2026.

The company says the decision follows careful consideration and extensive consultation with stakeholders, including the SA government.

It believes the power station will no longer be viable following completion of the electricity interconnector between SA and NSW in mid-2026.

The Torrens Island B power station opened in 1976 providing 800 megawatts of electricity for SA consumers.

However, the company mothballed the first of four generating units in October last year, after years of increased solar and wind energy supplies.

The remaining three units will be retired on June 30, 2026.

AGL said the decision was not expected to impact its profit forecasts this year or over the longer term, due to the challenged economic viability of the station.

“AGL is strongly committed to working with its people, in conjunction with unions and government, to help transition and further develop the skills and capabilities required for new and existing energy industries as Australia’s energy system transitions to a low-carbon future,” the company said in a statement on Thursday.

Over the past four years, AGL has invested $475 million in major energy projects on Torrens Island, including the 210 MW Barker Inlet Power Station, which opened in 2019, and the 250 MW Torrens Island battery, which is expected to be operational next year.

AGL also recently announced a feasibility study into the development of a green hydrogen facility at Torrens Island.

“Torrens Island will continue to play a crucial role in AGL’s current energy requirements and future generation plans as the site is transformed into an integrated industrial energy hub,” the statement said.


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