Torrens Island B Power station, South Australia

South Australia’s Torrens Island ‘B’ Power Station will close on 30 June 2026, ten years ahead of previous plans, allowing for the continued transformation of the site into a low-carbon Energy Hub. 

This decision follows careful consideration and extensive consultation with stakeholders, including the South Australian Government. This has been driven in part by the planned completion of the Project Energy Connect interconnector between South Australia and New South Wales in mid-2026, which will further impact gas-fired generation in South Australia and as a result the economic viability of the power station.

The power station had previously been reported by AGL to close in 2035. 

Torrens Island will continue to play a crucial role in AGL’s current energy requirements and future generation plans as the site is transformed into an integrated industrial Energy Hub, with the potential to drive new investment, create new job opportunities as well as the expansion into new markets including hydrogen and green energy.

The Torrens Island ‘B’ Power Station commenced operations in 1976 with a nameplate capacity of 800MW, providing South Australia with both electricity generation and grid ancillary services. The first of the four generating units (“B1”) was mothballed in October 2021; both B1 and the remaining three units will be retired on 30 June 2026.

AGL said the announcement is not expected to have a material impact on underlying profit in FY23 or over the longer term due to the challenged economic viability of the power station.

AGL is strongly committed to working with its people, in conjunction with unions and government, to help transition and further develop the skills and capabilities required for new and existing energy industries as Australia’s energy system transitions to a low-carbon future.

Over the past four years, AGL has invested $475 million in major energy projects on Torrens Island, including the 210MW Barker Inlet Power Station, which opened in 2019, and the 250MW Torrens Island battery, which is expected to be operational mid 2023 – providing crucial firming capability and system security to the grid. AGL has also recently announced a feasibility study into the development of a green hydrogen facility at Torrens Island.

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