Power generation specialist Pacific Energy Limited has announced that it has signed an agreement to acquire the 10MW Nova gas-fired power generation plant in Traralgon, Victoria.
The purchase price is $7.5 million and will be funded from the Company’s available facilities. Settlement is subject to conditions precedent, expected to be satisfied in December.
Nova was commissioned in 2014 as a high-efficiency/low emissions gas-fired power station to generate quick response to electricity demand in peak periods, funded partially by the Clean Energy Finance Corporation. The plant operates when the spot price of electricity exceeds the cost of acquiring gas plus an R&M allowance.
With technology delivering lower emissions than traditional coal-fired power generation, Nova provides a cleaner form of electricity directly to the Traralgon network.
The Nova site has an ability to expand, with gas supply infrastructure in place to fuel a 20MW plant, subject to augmenting existing grid connection infrastructure.
The Company has also identified other opportunities to enhance the power supply facilities at the 2 hectare site, with opportunities for battery storage technology and gas storage technology to be investigated.
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