Pacific buys Nova power plant for $7.5m

Perth-based Pacific Energy has acquired the 10-megawatt Nova gas-fired power generation plant in Victoria for $7.5 million.

The facility was commissioned in 2014 as a low-emissions power plant to generate electricity during peak periods.

The plant operates when the spot price of electricity exceeds the cost of acquiring gas plus an allowance.

Pacific managing director Jamie Cullen said the purchase was an exciting opportunity for the company to expand its presence in the National Electricity Market.

“With the federal government’s new policy aimed at reliability as well as emissions, Nova represents a well-timed and affordable acquisition of a strategic asset that can be expanded to capitalise on opportunities in the NEM,” he said

The plant also has an ability to expand its operations, with gas supply infrastructure in place to fuel a 20MW plant, subject to augmenting existing grid connection infrastructure.

Mr Cullen said the company was also investigating the potential for battery and gas storage technology to further expand supply.

“We will be developing an optimisation plan for the site which will include consideration of battery and gas storage as well as potentially entering into long-term capacity contracts,” he said.

Mr Cullen said Nova was not expected to have a material impact on this year’s financial results as a planning analysis was completed.

Pacific shares were up 2 per cent at 57 cents each at 130pm AEDT.