EnergyAustralia, a subsidiary of Hong Kong-based CLP, has reported a significant reduction in operating losses for the first half of this year. The utility company’s losses decreased from HK$8.68 billion to HK$559 million compared to the same period last year. The improved financial performance was primarily attributed to increased earnings from its two largest coal-fired power stations.
Power generation at EnergyAustralia’s Yallourn brown coal plant in Victoria saw an increase due to improved availability following maintenance works. Additionally, the company signed a new multi-mine coal supply contract with Australian coal producer Centennial for its Mount Piper black coal-fired power station in New South Wales.
The losses incurred in the first half of 2022 were mainly a result of unforeseen and severe outages at the Yallourn plant, including a fire that affected two generation units, as well as ongoing maintenance issues. However, EnergyAustralia managed to maintain reliability and availability at its gas-fired power stations.
A combination of factors, including a cooler summer, higher output at Yallourn, and fewer outages at Australia’s aging coal-fired generators, reduced the need for gas-fired power. Gas-fired power is typically used to fill market gaps during peak demand.
To bolster the reliability and availability of the Yallourn plant before its scheduled closure in 2028, EnergyAustralia plans to conduct major maintenance on two of its units from July to December. Maintenance for the other two units is planned for 2024.
Meanwhile, progress continues at the Tallawarra B gas and hydrogen peaking power station in New South Wales, which is set to begin operations during the 2023-24 summer.
EnergyAustralia also announced plans for the Wooreen energy storage system, a utility-scale battery project with a capacity of 350MW located in Victoria. The final investment decision for the project is expected toward the end of this year. Additionally, two smaller utility-scale batteries, the Riverina and Darlington Point projects with capacities of 65MW and 25MW respectively, are set to come online between July and September.
In response to community feedback, EnergyAustralia intends to relocate part of its proposed Lake Lyell pumped hydro project in New South Wales. The upper reservoir and pumphouse will be relocated to less visible locations. The project near Lithgow is currently undergoing a feasibility assessment, with an investment decision anticipated in late 2024.
Moreover, EnergyAustralia plans to conduct a feasibility study on building a 500MW battery at the Mount Piper site ahead of the coal-fired generator’s closure in 2042.
The utility company’s efforts reflect a strategic approach to improve its operations and explore alternative energy sources. By reducing losses and boosting earnings, EnergyAustralia aims to solidify its position in the energy industry while adapting to shifting market dynamics.
As EnergyAustralia continues to prioritize reliability, availability, and environmental sustainability, its ongoing initiatives in power generation, storage systems, and feasibility studies demonstrate a commitment to meeting future energy demands and addressing the evolving needs of the Australian energy market.
