Snowy Hydro has expanded its presence in the National Electricity Market with the $234 million acquisition of the largest gas-fired generation plant in NSW, Delta Electricity’s Colongra Power Station.
The purchase of the 667 MW peaking plant, which will be completed in early 2015, complements Snowy Hydro’s acquisition of Infratil’s Australian Energy Market Assets, including the retailer Lumo, in September last year.
The Colongra plant will deliver fuel diversification and transmission risk reduction benefits and, through its addition to the existing Snowy Hydro generation assets in NSW, enable Snowy Hydro to deliver a superior total customer offering in NSW.
Snowy Hydro CEO Paul Broad said, “Snowy Hydro has spent many years building its balance sheet while diversifying its revenue streams to futureproof the business. We are committed to using this balance sheet strength wisely and the acquisition of Colongra marks another step towards becoming a financially robust fourth pillar in the National Electricity Market.”