Territory Generation has selected the contractor for its Tennant Creek Power Station upgrade, after the Northern Territory Government announced it will invest $26million in the project.
Clarke Energy has been selected as the contractor for the upgrade and will supply and install three of GE’s high-efficiency, gas-fired, spark ignition Jenbacher J612 reciprocating gas engines, which will be located adjacent to the existing plant.
Northern Territory Chief Minister, Adam Giles, said the Tennant Creek Power Station is made up of 20 to 40 year old units that don’t match the requirements of the Tennant Creek load.
“This upgrade to the Tennant Creek Power Station is an important investment that will increase the reliability and efficiency of power supply and help reduce electricity prices.
“It will also see a reduction in emissions, increased reliability and create employment in the region with 27 direct jobs expected to come during the construction phase.”
Northern Territory Treasurer, David Tollner, said the upgrades will give Barkly residents increased confidence in their power supply and create high efficiency power plants with improved environmental outcomes.
“Once the upgrade is complete we will see a significant reduction in maintenance and operating costs and wholesale electricity price, the benefit of which will be passed back to the electricity customers through lower retail electricity tariffs,” Mr Tollner said.
The announcement follows the Country Liberals Government recent announcement of a $75million investment in Owen Springs Power Station in Alice Springs.
Mr Giles said, “These investments in Central Australian power supplies fall in line with other electricity reform programs implemented by the Country Liberals Government to deliver efficiencies in supplying electricity in the Territory.
“We are delivering, and will continue to deliver improved management of costs in all parts of the Territory electricity supply chain.
“It’s all part of the Country Liberals Government’s plan to deliver more jobs, better services and improve our unique way of life in the Territory.”
Upgrade works are due to commence in February 2016, with the new capacity expected to be commissioned in July 2017.