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ENGIE announces $40m upgrade of SA's Pelican Point

07:18 UTC+8 March 29, 2017 | Sara Garcia

Pelican Point's second turbine was mothballed in 2015, but will be switched back on and upgraded. (ABC News: Dean Faulkner)

South Australia's Pelican Point power station will be returned to its full available capacity of 479 megawatts within the next three months, its owner ENGIE says.

The announcement came on the same day the company turned off its 1,600MW Hazelwood power station in Victoria.

ENGIE said it would spend more than $40 million upgrading its second turbine at Pelican Point in South Australia after it was withdrawn from the market in April 2015.

The company also signed an electricity offtake agreement with Origin Energy to provide gas to Pelican Point and for a fixed charge Origin gain access to 240MW of electricity, which will be used to supply South Australian customers.

The agreement will run from July 1, 2017 to June 2020 and Origin said it would "better position Pelican Point to support peak demand over the 2017/18 summer period".

ENGIE chief executive Alex Keisser said having an additional gas generator running will improve the security of the grid in South Australia.

"We will be able to offer an additional 240MW of energy to the South Australian market, while also creating short-term economic activity through the turbine refurbishment program, "Mr Keisser said.

"Recent events have highlighted the challenges of the National Electricity Market (NEM) in SA and by customers contracting Pelican Point's additional capacity, some of the supply pressures experienced in times of high demand could be alleviated."

He said work on the refurbishment would begin immediately, but the company would be making both turbines available to NEM before the upgrade starts.

AustraliaPlus


 

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