EnergyAustralia posts lower Jan-Jun operating losses

Utility EnergyAustralia reduced its operating loss from its Australia-based operations in January-June from a year earlier, because of increased earnings from its two largest coal-fired power stations.

EnergyAustralia, a wholly owned subsidiary of Hong Kong-based CLP, posted an operating loss of HK$559mn ($72mn) in January-June - a significant decrease from the HK$8.68bn recorded in the same period last year - according to a filing from CLP on 7 August.

Power generation at its 1,480MW Yallourn brown coal plant in Victoria increased because of improved availability following maintenance works, while the firm signed a new multi-mine coal supply contract with Thai-owned Australian coal producer Centennial for EnergyAustralia's 1,400MW Mount Piper black coal-fired power station in New South Wales (NSW).

The losses suffered by EnergyAustralia in January-June 2022 were a result of unexpected and severe outages at Yallourn, including a fire in the coal conveyor system that affected two generation units, along with ongoing maintenance issues.

EnergyAustralia said it has "maintained reliability and availability" of its gas fired-power stations. But a cooler summer, higher output at Yallourn and fewer outages at Australia's ageing coal-fired generators reduced the need for gas-fired power, which is often employed as a source of electricity to fill market gaps during peak demand.

The firm is undertaking major maintenance at two units in Yallourn from July-December, to bolster the reliability and availability of the generator before its scheduled closure in 2028. Maintenance for the plant's other two units is set for 2024, according to the company.

Progress continues at the 316MW Tallawarra B gas and hydrogen peaking power station in New South Wales, which is on track to begin operations during the 2023-24 summer, the company said.

The company in February secured planning approval for the Wooreen energy storage system and is moving forward with the project, which is a four-hour, utility-scale battery with a capacity of 350MW, located in Victoria. The final investment decision for the project is anticipated around the end of the year, EnergyAustralia said.

Additionally, two smaller utility-scale batteries, the 65MW Riverina and the 25MW Darlington Point projects, are likely to come on line during July-September.

EnergyAustralia will relocate part of its proposed 335MW Lake Lyell pumped hydro project in NSW following community feedback. The upper reservoir will be moved to a less visible site and pumphouse will be shifted underground, the company said. The project near the town of Lithgow is undergoing a feasibility assessment with an investment decision scheduled for late 2024.

EnergyAustralia will also conduct a feasibility study into building a 500MW battery at Mount Piper, ahead of its coal-fired generator closing in 2042.

By Tom Major

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