Australian Power Station to Close a Decade Ahead of Time

(Image AGL)

Australian power company AGL Energy (AGL) has announced it will shutter the Torrens Island ‘B’ gas power station in South Australia on 30 June 2026, almost ten years ahead of the planned closure date.

In an announcement, the firm said it will continue to progress the transformation of its Torrens Island site into a low-carbon industrial energy hub.

AGL said the move decision follows careful consideration and extensive consultation with stakeholders, including the South Australian Government. “This has been driven in part by the planned completion of the Project Energy Connect interconnector between South Australia and New South Wales in mid-2026, which will further impact gas-fired generation in South Australia and as a result the economic viability of the power station,” the statement said.

The Torrens Island ‘B’ power station commenced operations in 1976 with a nameplate capacity of 800 MW, providing South Australia with both electricity generation and grid ancillary services.

The first of the four generating units (“B1”) was mothballed in October 2021; both B1 and the remaining three units will be retired on 30 June 2026.

AGL said it is strongly committed to working with its people, in conjunction with unions and government, to help transition and further develop the skills and capabilities required for new and existing energy industries as Australia’s energy system transitions to a low-carbon future

Over the past four years, AGL has invested AUS$475 million in major energy projects on Torrens Island, including the 210 MW Barker Inlet Power Station, which opened in 2019, and the 250 MW Torrens Island battery, which is expected to be operational mid-2023.

AGL plans to transform the Torrens island site into an integrated industrial Energy Hub, with the potential to drive new investment, create new job opportunities as well as the expansion into new markets including hydrogen and green energy.

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