The Australian government is planning to underwrite two gas-fired projects, facilitating project financing.
The Australian government announced today that it plans to undewrite gas-fired power projects being developed by Quinbrook Infrastructure Partners and APA Group.
Quinbrook’s 132 MW gas fired project at Gatton, west of Brisbane and ASX-listed APA Group’s 220 MW project at Dandenong in Victoria will be the first two projects the government supports under the Underwriting New Generation Investments (UNGI) program, according to the Federal Minister for Energy, Angus Taylor.
The plan is for the government to underwrite the projects’ offtakes, making it easier for them to attract private financing. The UNGI program was designed specifically to address the intermittency problems created by the Australian power industry’s shift towards renewables.
The Gatton project is first phase of a 1 GW peaking power project, which is owned by Quinbrook’s Low Carbon Power Fund. It plans to employ the latest aeroderivative gas turbines, light weight machines that mix gas and air, to create a fast-start, flexible capability that can react to a sudden decrease in renewable power.
APA’s Dandenong Power Station is another fast-start generator, close to the network’s existing gas supply and to Melbourne, a major center of power demand.