AGL announcement of additional gas generation capacity welcomed

The Shadow Minister for Energy Dr Steve Thomas has welcomed the announcement by AGL that it would add 220 megawatts of peak gas generation in WA to underpin the stability of the South West Interconnected System.

“This is a great result for grid stability during the future energy transition of the WA system” Dr Thomas said.

“I have repeatedly said that we need additional gas generation to have a stable transition that will keep the lights on, the air conditioners running and businesses operating at a cost that both families and industry can afford.”

“To reach that goal the Liberal policy I wrote in 2024 included the need for 300 megawatts of additional peak gas generation, and this announcement gets the grid 73% of the way there.

“I do not think this is the end of the gas story though, because I believe that we will need one or two more peak gas projects in coming years to adequately underpin the transition.

“To manage this process each proponent will need power purchase or offtake agreements to underpin sales, because without this they cannot proceed.

“Those agreements could be with the private sector or with Synergy” Dr Thomas said.

“The same need for offtake agreements applies to renewable energy proponents.

“Even with the additional stability provided by AGL by 2028 it is also likely that the coal generation units at Muja will have to be extended by two to three years until the additional gas power is ready.

“The next crucial steps we need to take are to ensure an adequate domestic gas supply for use in electricity generation, and to plan and deliver the transmission system that will take the electricity to where it is needed.  

“Then we are the path to a deliverable transition plan” Dr Thomas said.