February 17, 2015
Hopes that all four power generating units at the Tarong Power Station will be back online this year have been dashed with the news from Stanwell today that Unit 2 will remain mothballed until at least 2016.
The State Government-owned corporation today advised the Australian Energy Market Operator of its intention to postpone the return to service of Unit 2 until 2016, depending on market conditions.
Tarong Site Manager Dennis Franklin said Stanwell had planned to return Unit 2 to service in the second half of 2015, however continuing subdued conditions in the wholesale electricity market had led to the latest decision.
“Lower than expected electricity demand, an abundance of cheap gas and the continuing growth of solar energy are all factors which influenced our decision,” Mr Franklin said.
“One of Stanwell’s strategic objectives is to sell our energy for the best return. We believe we can achieve this objective by returning the unit to service in 2016 when market conditions are forecast to have improved.
“Stanwell is committed to the South Burnett. Our capital investment in the region for 2014 was more than $100 million and we plan to spend a similar amount in 2015.”
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At a community update in November 30, Stanwell CEO Richard Van Breda warned the corporation was still dealing with a “very challenging” wholesale electricity supply market.
However, at that time Mr Van Breda still believed Unit 2 would come back on line in the middle of 2015.
“We have made some very tough decisions which have been very hard, but we want Tarong to be here for another 20 years,” Mr Van Breda said.
He said the current projected life of the Tarong and Tarong North power stations was 2037.
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