SUMMARY

The company said it will continue to progress the transformation of its Torrens Island site into a low-carbon industrial energy hub.

By Shardul Sharma

Australian utility AGL Energy will close the gas-fired Torrens Island B power station in South Australia in June 2026, it said on November 26.

“This decision follows careful consideration and extensive consultation with stakeholders, including the South Australian government,” AGL said.

“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 company added.

The Torrens Island ‘B’ power station began operations in 1976 with a nameplate capacity of 800 MW, 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 in June 2026.

AGL said it will continue to progress the transformation of its Torrens Island site into a low-carbon industrial energy hub.

The company in September announced an accelerated exit from all coal-fired generation and said it will shut down the Loy Yang A power station in Victoria a decade earlier than planned, changing the closure date from 2045 to 2035.