11 November 2016
The Minister for Essential Services and Member for Barkly, Gerry McCarthy, this week announced a key milestone in the $26 million upgrade of Tennant Creek Power Station.
Mr McCarthy visited the power station to see the installation of three new engines, which arrived in the town recently.
Essential Services Minister Gerry McCarthy visited Tennant Creek Power Station to see the installation of new engines.
Territory Generation is replacing aged electricity generators at Tennant Creek with the latest equipment in order to provide efficient and reliable power supply and drive down the cost of producing electricity.
Mr McCarthy said construction was expected to finish by August 2017.
The project involves installing three 2MW gas-fired engines and a 1.5MW diesel engine next to the existing plant.
“The upgrade will reduce emissions by an estimated 20 per cent and increase the reliability of electricity supply,” Mr McCarthy said.
“Twenty-seven direct jobs are being created during the construction phase and several local contractors have been engaged on the project.”
Territory Generation chief executive Tim Duignan said the existing engines at Tennant Creek were 20 to 40 years old and don’t meet the town’s reliability requirements.
“The capital investment will increase operational efficiency, reduce fuel and maintenance costs, and put downward pressure on the wholesale price of electricity,” he said.
“Territory Generation is adopting a renewable energy strategy which will increase production from renewable sources to achieve the Government’s 50 per cent target by 2030.
“As technology advances it’s expected that renewable energy will contribute a greater proportion of the energy mix in Tennant Creek and across the Territory.”
Clarke Energy was selected from an original 19 expressions of interest as the engineering, procurement and construction (EPC) contractor to deliver the project.
A similar upgrade is progressing at Owen Springs Power Station near Alice Springs.