HomeInfratil News2008Infratil Energy Australia Commissions 30 MW Peaking Power Station in NSW

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Infratil Energy Australia Commissions 30 MW Peaking Power Station in NSW

22 Sep 2008

Infratil's wholly owned subsidiary, Infratil Energy Australia (IEA), confirmed the successful commissioning of its peaking power station in the Hunter Valley, NSW.

The power station consists of 16 x 1.8 MW reciprocating diesel generator sets providing very high reliability and rapid start up capability. The plant was designed and built by Cummins South Pacific Pty Ltd who will continue to operate and maintain it. The total capitalised cost of the plant, including interest during construction, is about A$20M (reflecting the higher Australian dollar exchange rate at the time of project commitment).

The plant uses start-of-the-art catalytic conversion and oxidation to remove 98% of NOx emissions as well as substantially reducing any unburnt hydrocarbons, CO and particulate matters. Further, Infratil has committed to purchasing Greenhouse Abatement Certificates to offset CO2 emissions from the plant.

IEA's CEO, Mr Darryl Flukes said "The plant is expected to operate for less than a hundred hours per year. The plant capacity will be marketed to the NSW electricity price cap market in the interim until IEA's sister retail company, New South Wales Electricity, licensed in 2006, commences retail operations in that state. The timing of retail start up in NSW depends on market conditions. The plant has also secured a short term network support role and may operate to augment reliability of supply over local peak loads and during network outages."

This plant brings IEA's suite of diesel peaking plant to 100MW across the NEM. This provides backup generation, during occasional periods of high electricity prices. This also complements the portfolio of price protection instruments required for Infratil's electricity retailing businesses to manage its exposure to the volatile wholesale electricity spot market.

About IEA
IEA was established in 2005 to undertake all wholesale procurement and risk management activities for Infratil’s electricity and gas retailing businesses in Australia and to pursue upstream energy investment opportunities, in particular power generation.

It currently procures over 2 million MWh of power (ca. 450MW peak demand) and 10PJ of gas per annum for the retail sales to over 350,000 retail customers.

IEA is also responsible for Infratil’s investment in Perth Energy - a retailer in WA which is currently developing a 120MW gas-fired power generation project.
For further information
Darryl Flukes, CEO IEA
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