TRUenergy is planning to construct two new gas-fired power stations in Victoria and New South Wales.

The company is putting together a proposal for the construction of a 1,000 megawatt (MW) gas-fired power station to be located next to its existing 1,500 MW coal-fired Yallourn Power Station in Gippsland, Victoria.

TRUenergy also said that it is planning a second gas-fired power station to be located adjacent to its existing Tallawarra Power Station, located in New South Wales. Tallawarra B is expected to have a capacity of 400 MW, doubling the size of the existing power station. Together, the two power stations will be able to supply 400,000 homes with electricity.

TRUenergy’s spokesperson said that the company’s plans are contingent on the final outcome of the Australian Government’s Carbon Pollution Reduction Scheme (CPRS), stating that the power stations will go ahead provided that the CPRS creates the right investment climate for the company to develop gas-fired power. In addition, the New South Wales Government has approved the development of two new gas-fired power stations north of Marulan.

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State Planning Minister Kristina Keneally said that between them the two facilities have the potential to generate up to 800 MW of electricity and support around 500 construction and 20 ongoing jobs.

The power stations were proposed by Energy Australia and Delta Electricity.

“The Energy Australia proposal is for a 350 MW peaking power station while the Delta Electricity proposal will comprise of two stages,” Ms Keneally said.

“The first stage of the Delta Electricity proposal is for a 250–350 MW gas-fired peaking power station. Stage two is to convert that station into a base load 400–450 MW facility.

“The potential for Delta to convert from a peaking power station to a baseload power station will depend upon market demand and further assessment.”

The land on which the power stations are to be located is one of eight to ten development sites selected by the New South Wales Government for sale to the private sector. The development approvals for the power stations will be part of the sales package.

In South Australia, AGL Energy is planning an $800 million expansion at its Torrens Island Power Station.

The company plans to increase peaking generation at the plant by more than 50 per cent with the installation of either two larger or four smaller new generation gas turbines and the construction of a major new gas storage facility.

South Australian Premier Mike Rann said “AGL informs me that when the expansion is fully developed, it will be capable of producing 700 MW of peaking generation and combined with the existing Torrens Island Power Station, it will make it one of the biggest power stations in Australia.”

State Energy Minister Patrick Conlon said that part of the project involves the construction of a gas storage facility to provide a safe and effective means of storing natural gas piped down from Moomba in the north of the state or Otway Basin in Victoria.

AGL expects to formally lodge an application in January 2010 and if approved, hopes to begin construction in about two years.