Gas power stations for Victoria and Queensland
The federal government recently announced an agreement to underwrite new gas turbines in Victoria and Queensland to provide relief from expected high peak prices. The operation of these assets, below the usual short run marginal cost of current open cycle gas turbines (QLD – $106 / MWh – AEMO 2019) will potentially limit the likelihood of high prices or price volatility over the morning and evening peaks resulting in reduced average spot outcomes.
Under the new generation underwriting plan, which was proposed by the ACCC, the government will assure an amount of the electricity generated will be purchased for a set period into the future.
The Victorian generator will be located at Dandenong, south-east from Melbourne’s CBD and the Queensland asset will be located near Gatton, 90km west of Brisbane.
The 132MW Queensland generator is proposed by Quinbrook Infrastructure Partners, while the 220MW Victorian asset is proposed by the APA group.
Mr Taylor (Minister for Energy and Emissions Reduction) has previously said the government had been “hard-nosed” with these projects and each of them would have to prove commercially viable and benefit the jurisdiction in which they were going to operate.
Both projects are expected to commence construction next year once private sector finance has been secured.
If you would like to know more, please contact Edge on 07 3905 9220.