Low Carbon project provides efficiency boost to Latrobe electricity network

Low Carbon Australia is financing an $11 million pilot energy-generation project at Traralgon in Victoria that demonstrates the potential for power security across Australia’s eastern seaboard.

NovaPower will use high-efficiency Caterpillar gas-fired engines in an innovative solution that provides lower-emissions power and defers network investments, thus reducing costs to electricity users. The Traralgon Project will operate during periods of peak demand when the Traralgon distribution network may require support.

NovaPower is sourcing its natural gas from the local gas distribution system owned by Envestra. It is also working closely with SP AusNet, the Victorian Government, the Latrobe City Council, ANZ and Low Carbon Australia.

NovaPower’s Managing Director, Anthony Collins, said NovaPower had chosen Traralgon as the site of its first generated-power project following SP AusNet’s decision to source complementary innovative alternatives to its planned upgrade of the Traralgon distribution network to meet the increasing demands of the growing region.

“Our project effectively defers the need for an otherwise costly upgrade for several years,” he said.

“We are using high-efficiency technology that has lower emissions than traditional coal-fired power generation to provide a cleaner form of electricity directly to the Traralgon network during peak-demand periods.

“We’re delivering greater reliability of power supply for residents and businesses. We’ve also created local employment opportunities for 80 contractors involved in building the project and will provide ongoing local employment through maintenance contracts.”

Collins said that NovaPower has plans to roll out the technology in areas of high electricity demand across several states using its Traralgon model as the benchmark.

Low Carbon Australia’s CEO, Meg McDonald, said Low Carbon Australia was pleased to be helping finance this innovative local network embedded generation project as it demonstrated the potential for a lower-emission electricity solution.

“NovaPower is helping ensure a cost-effective solution and improving security of supply for local networks,” she said.

“We estimate that distributed generation can deliver 20 to 25% of Australia’s potential 2020 cost-effective carbon abatement.”

SP AusNet’s Director for Smart Networks, John Theunissen, said, “SP AusNet is committed to the safe and reliable supply of electricity to meet the future demand of Traralgon’s residents and businesses.

“In July this year, we began construction on our $12.8 million Traralgon network upgrade and we’re pleased to incorporate innovative solutions from NovaPower that defer the need for further upgrades for several years.”