2015-16 Annual Report

2015-16 annual report cover

26 October 2016

Territory Generation’s second annual report (2015-16) has been tabled in the Northern Territory Legislative Assembly.

Chairman David De Silva said the report shows the government-owned business increased the reliability of electricity generation and put downward pressure on power prices.

Mr De Silva said $101 million in construction work has begun in Alice Springs and Tennant Creek on major power station upgrades to further improve reliability, efficiency and safety.

“As part of this project, we are investing $2.5 million in the latest technologies to support solar power in Alice Springs, which has very high penetration of solar generation,” Mr De Silva said.

“Looking forward, we will increase our investment in renewable and alternative energy. We are on a journey towards a renewable future and we are looking at ways to integrate renewable energy across the Northern Territory.”

The report reveals that Territory Generation achieved a net profit after tax of $16.7 million and paid a dividend of $8.4 million to the NT Government.

In the 12 months to 30 June 2016, Territory Generation’s combined output from gas, diesel and solar facilities was 1973 gigawatt hours (GWh) of electricity. This compared with 1893 GWh produced in 2014-15.

The increase was due in part to the increased use of cooling equipment such as air conditioners and refrigeration during unusually hot and dry conditions from February through to June.

For the 12 months ended 30 June 2016, revenue from the sale of electricity was $306.6 million, compared with $342.8 million the previous year. The decrease was primarily due to a review of wholesale pricing, implemented from 1 July 2015.

Territory Generation’s operating costs in 2015-16 were $253.3 million ($265.6 million in 2014-15), and slightly higher than budgeted due to increased demand associated with extended hot and dry weather in the wet season.

Capital expenditure for the 12 months to 30 June 2016 was $58.6 million, compared with $18.1 million the previous year. The increase was due to continued work on the Channel Island and Katherine Power Stations life extension works, and the commencement of works at Owen Springs and Tennant Creek.

The new record for the longest run without a single-contingency under-frequency load-shed event in the Darwin/Katherine interconnected system is 390 days (continuing), eclipsing the previous record of 278 days set last year.

Improved reliability was due to a range of factors including improved asset management and maintenance, progressive upgrade to critical generation equipment, improved accuracy of system performance monitoring, and close liaison between Territory Generation and Power and Water Corporation’s System Control.