The Torrens Island ‘B’ Power Station is set to be shut down on 20 June 2026, according to AGL Energy Limited.
In a statement, AGL added that it would move forward with plans to develop its Torrens Island site into a low-carbon industrial Energy Hub.
AGL said the decision follows a thorough deliberation and significant stakeholder participation, including with the South Australian Government. This has been influenced in part by the Project Energy Connect interconnector’s anticipated completion between South Australia and New South Wales in mid-2026, which will have further effects on South Australia’s gas-fired generation and, consequently, the power plant’s economic sustainability.
With an 800 MW nameplate capacity, the Torrens Island ‘B’ Power Station started operating in 1976, supplying South Australia with grid ancillary services and power generation. The first of four generating units (“B1”) was decommissioned in October 2021; both B1 and the remaining three units will be decommissioned on 30 June 2026.
Due to the power station’s limited economic viability, AGL said the announcement is not expected to significantly impact underlying profit in FY23 or in the long term.
According to AGL, it is dedicated to working with its employees, in collaboration with unions and government, to transition and further develop the skills and capacities needed for new and existing energy businesses as Australia’s energy system transitions to a low-carbon future.
AGL has spent $475 million on large energy projects on Torrens Island over the past four years, including the 210 MW Barker Inlet Power Station, which debuted in 2019, and the 250 MW Torrens Island battery, which is anticipated to go online in the middle of 2023 and will give the grid vital firming capability and system security. Additionally, AGL recently revealed plans to conduct a feasibility study for the construction of a green hydrogen facility on Torrens Island.
Torrens Island will continue to play an important role in AGL’s current and future energy requirements as the site is transformed into an integrated industrial Energy Hub, with the potential to drive new investment, create new job opportunities, and expand into new markets such as hydrogen and green energy.
