Power generation specialist Pacific Energy has signed an agreement to acquire NovaPower’s gas-fired power plant in Victoria for $7.5 million.
The 10MW site based in Traralgon has the capacity for expansion, with gas supply infrastructure in place to fuel a 20MW plant, subject to augmenting existing grid connections.
Nova was commission in 2014 as a high-efficiency, low-emissions gas-fired power station to generate quick response to electricity demand in peak periods.
Pacific Energy will develop an optimisation plan for the site, which will include consideration of battery and gas storage as well as potentially entering into long-term capacity contracts.
It was partially funded by the Clean Energy Finance Corporation and operates when the spot price of electricity exceeds the cost of acquiring gas.
“This is an exciting opportunity to expand our presence in the National Electricity Market (NEM), where there is clearly significant focus at present,” said Pacific Energy’s managing director Jamie Cullen.
“With the Federal Government’s new policy aimed at reliability as well as emissions, Nova represents a well-timed and affordable acquisition of a strategic asset that can be expanded to capitalise on opportunities in the NEM.”