Renewable generation under construction
In 2006, AGL announced that the Bogong hydroelectric power station project in regional Victoria would proceed. The project will add 140 MW of new renewable capacity without impacting on river flows. The project is expected to be commissioned in late 2009. In 2006, AGL also announced that the largest (at the time) wind farm in Australia at Hallett in South Australia would proceed. The 95 MW wind farm will be located next to the Hallett gas-fired peaking power station.
Acquisition of renewable generation
In February 2007, AGL acquired a number of biomass generation and cogeneration assets as part of the Powerdirect retail business acquisition. In total, the acquisition added 43 MW of renewable generation capacity to the AGL portfolio. These assets provide AGL with a complete suite of renewable generation facilities which now includes: wind; hydro; solar; biomass; landfill gas; biogas; and cogeneration.
Renewable generation under development
AGL is considering a number of new renewable energy projects across a range of technologies. Most notably, in the past year AGL secured planning approval for the largest wind farm in Australia, the 330 MW Macarthur wind farm in regional Victoria. AGL also acquired the development rights to a 71 MW wind farm in South Australia. The proposed Hallett Hill wind farm will be approximately 20km from the 95MW Hallett wind farm currently under construction. The Hallett Hill development would provide enough renewable energy to power 40,000 average Australian households and abate approximately 250,000 tonnes of greenhouse gases.
Operation of existing renewable generation capacity
AGL has continued to own and operate our hydroelectric assets – AGL Hydro. These assets are located throughout NSW and Victoria and in total provide AGL with 645 MW of zero emission generation capacity. When combined with our assets under construction, approximately 28% of AGL’s generating capacity will be either wind or hydro. No other privately owned company operating in Australia has a portfolio with such significant renewable assets.
Operation of greenhouse gas abatement projects
We are continuing to operate landfill gas generation facilities. These include the Gosnells, Rockingham sites in WA, the Shoalhaven site in NSW and the facilities at Hobart and Glenorchy, both of which are located in Tasmania. Flaring activities are continuing at a number of landfill sites across Australia. In addition to these assets, AGL is also operating the largest biogas facility in Australia at Werribee in conjunction with Melbourne Water and large cogeneration projects for Symex in Port Melbourne and Coopers in Adelaide.
Acquisition of gas-fired power generation
In 2007, AGL acquired the 1280 MW Torrens Island power station in South Australia. This gas-fired asset produces significantly less greenhouse emissions than an equivalent coal-fired power station. In addition to being low emission, the asset also provides AGL with significant portfolio management capabilities due to the quick start features of the asset.
Gas-fired generation under development
Natural gas-fired generation has the potential to significantly lower Australia’s greenhouse gas emissions. Combined cycle generators emit around 0.4 tonnes per MWh which is significantly lower than best practice coal-fired technology (approximately 0.8 tonnes per MWh). The uptake of gas-fired generation is an economic way to transition the power generation sector towards a low emission future. AGL is currently considering a range of gas-fired generation projects in QLD and NSW.
Operation of gas-fired power generation
We have continued to own and operate the Somerton power station in Victoria. Due to the drought and reduced availability of water for hydro generation, the power station has been required to operate at higher levels than in previous years to meet the demand for electricity at peak times. The power station has an emissions intensity significantly below the Victorian market average and does not adversely impact on local air quality.
Power purchase agreements
AGL continues to support the development of the renewable energy industry through the purchase of large volumes of renewable energy. AGL has power purchase agreements with a number of renewable energy generators. These include: hydro generators owned by AGL such as Dartmouth, Eildon and Rubicon, non-AGL owned facilities such as the Starfish Hill and Canunda wind farms and assets that we do not own, but operate on behalf of the owner such as Wattle Point wind farm.
By agreeing to purchase large volumes of renewable energy, AGL is able to provide project developers with the necessary certainty to move ahead with projects. In 2007, we estimate that we will purchase around 1,020,000 Renewable Energy Certificates (RECs - equivalent to 1 MWh each) to comply with the Mandatory Renewable Energy Target. This is equivalent to the output from a 349 MW wind farm. |
