The Northern Territory government plans to extend the lifespan of a nearly 40-year-old gas-fired power station, signaling a possible retreat from its 2030 renewable energy goal.
Gas Generators to Remain Operational
Minister for Essential Services Steve Edgington confirmed that government-owned Territory Generation will continue using three gas generators at Darwin’s Channel Island Power Station. Built in 1987, these industrial generators were originally set for retirement in 2027.
According to Mr. Edgington, extending their operation will help ensure “sufficient reliable capacity” for the Darwin to Katherine grid, which supplies electricity to approximately 150,000 residents.
“Planning for Channel Island Power Station includes extending three of the four heavy industrial gas turbines. One will operate until 2031, while the other two will run until 2035,” a spokesperson for Mr. Edgington stated.
Additionally, Territory Generation intends to convert the fourth generator into a synchronous condenser, a device that stabilizes the grid when renewable energy sources fluctuate.
Currently, Channel Island’s gas generators account for 35% of the Darwin to Katherine grid’s energy capacity.
Concerns Over Long-Term Energy Solutions
For years, the NT Utilities Commission has warned that significant investment is required to replace Channel Island’s aging gas generators and maintain reliable electricity supply.
Reacting to the government’s decision to extend their lifespan, the commission said this is not a sustainable long-term solution.
“The commission does not have visibility of the business case to determine if this is the best approach. Life extension works will take time, incur costs, and keep less efficient generators in service for longer,” it stated.
The commission also emphasized that addressing energy challenges requires a mix of new power generation, battery storage, synchronous condensers, and demand-side management.
Mr. Edgington noted that Territory Generation is developing several solar battery storage projects in Darwin, Katherine, Tennant Creek, and Alice Springs, which will enhance energy security and contribute to overall capacity.
Renewable Energy Target in Question
The decision to extend the use of gas generators comes as the NT’s Country Liberal Party (CLP) distances itself from the 50% renewable energy target set for 2030.
The target, introduced by the previous Labor government in 2016 and initially supported by the CLP, now seems uncertain. In 2023, only 15.3% of the NT’s energy came from solar—mainly from rooftop systems—while commercial solar farms supplied just 2.3%.
Four solar farms built in 2020 remain largely offline due to grid stability issues.
When asked about the 2030 renewables target, a Department of Mining and Energy spokesperson reiterated the government’s commitment to affordable electricity during the transition to a lower-emissions future.
“Our primary focus is delivering affordable, reliable, and secure energy through a diverse energy mix,” the spokesperson said.
The government remains committed to net-zero emissions by 2050 but emphasized a “planned and phased transition” to renewable energy.
Deputy Chief Minister Gerard Maley added, “Renewables are important for a sustainable and reliable energy supply, but this should not come at any cost.”
Ongoing Gas Supply Challenges
As the NT struggles with its renewable energy goals, it also faces gas supply issues.
In 2009, Power and Water Corporation (PWC), a government-owned utility, signed a 25-year, $5.5 billion deal with Italian company Eni to source gas from the Blacktip gas field, located 300 kilometers southwest of Darwin. This supply was expected to last until 2034.
However, ongoing supply disruptions at Blacktip have forced PWC to purchase emergency gas from Santos and Inpex since at least the 2020/21 financial year.
Santos has been supplying gas from the Bayu-Undan field in Timorese waters. However, data from the Australian Energy Market Operator indicates that its supply to PWC stopped for about two weeks this month.
During this period, Inpex’s LNG plant in Darwin provided gas to PWC as an emergency measure.
The NT government now faces mounting challenges in balancing reliable energy supply, renewable energy commitments, and long-term sustainability.
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