A 2017 sign protesting against AGL’s plans for a gas-fired power station near Dalton. Photo: John Thistleton.
A national energy giant has put the brakes on a gas turbine power station near a small southern NSW town following community pressure.
AGL Energy was given approval for the project in 2012 at a site near Dalton in Upper Lachlan Shire, but scrapped its plans just months later.
In 2017, the company put forward a $1.5 billion plan for a gas-fired power station at the site near the township, but shelved it.
It resurfaced in recent months, when the energy giant began early investigation work on a new application.
At the time, a spokesperson told Region the project was being investigated as part of its response to the Bayswater Power Station closure.
“AGL is currently seeking community feedback about the potential development of a gas power station on AGL-owned land in Dalton, and we are in the early stages of this investigation,” the company said.
But Upper Lachlan Shire Council (ULSC) formally received an update on the project at its recent meeting, with AGL indicating it was backing down.
In a letter sent to the council this month, AGL’s general manager for stakeholder engagement John McCormack confirmed the company had “paused work” on its plans.
“This decision follows feedback we’ve received from community members over recent weeks, and specifically their requests to consider other potential project sites,” he wrote.
“Gas-powered electricity generation remains a part of AGL’s plans, and we expect it to be required as a fast start, reliable and flexible power source at times of peak demand, and when wind, solar or hydro power cannot provide enough electricity to meet demand.
“Once our assessment of alternate locations is complete, we will be back in contact with the next steps for the project and plans for AGL-owned land in Dalton.”
During the meeting, Mayor Paul Culhane acknowledged that some in the community were concerned by the proposal.
“I guess all the feedback we’re getting is it’s extremely unlikely that [a] project of that nature will happen. It will instead be located at a more appropriate location, somewhere in NSW.”
He also said AGL representatives were “a lot more forthcoming” than at previous times.
While ULSC had initially asked them to address councillors at their meeting, he said this decision meant the invitation was “somewhat irrelevant”.
But councillor John Searl JP said the announcement left key questions unanswered.
He described the pause as being a “temporary stop”.
“There’ll be jubilation – and I will be joining in as well – but at the moment it has suspended the matter or paused it … [There are still worries] about the location of a potential or proposed gas-fired power station within a couple of kilometres from the township.”
In response to questions from Region, an AGL spokesperson said the company remained committed to exploring its options across NSW.
“This decision is in response to feedback received during community consultation held earlier this year and last year, and the fact that AGL is expanding its development pipeline options and assessing a range of projects for its diverse portfolio.
“Genuine community engagement is important to AGL and it’s also a crucial element in ensuring our industry delivers the energy transition without further delay.”
The spokesperson also confirmed the company was “reviewing options” for other NSW sites, but did not respond to questions about where these were located or the timeline for that process.
In a statement on social media, Member for Goulburn Wendy Tuckerman (whose electorate takes in the small town) thanked those who had reached out and shared their views with her.
“They’ve also committed to updating me on future plans for the AGL-owned land at Dalton once that assessment is complete,” she wrote in a statement on social media.
