Oct 21, 2017 Last Updated 10:47 AM, Oct 19, 2017

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Plans for $1.5 billion NSW gas station revived

power plant blue skyAusBNAusBN - Plans for a new AUS$1.5 billion gas-fired power station in New South Wales are back on track following a national debate on energy security.

AGL Energy (ASX: AGL) was handed approval for the Dalton Power Station, located West of Goulburn back in 2012, but the project was put on hold amid environmental concerns.

With this approval set to expire in July, AGL is seeking a two-year extension which will secure the future of the gas-powered facility.

The energy firm said that new technologies and existing market conditions have strengthened the viability of the power station.

"The energy landscape has changed, and ensuring secure, reliable and affordable energy supply for the state is a priority," said an AGL spokesperson.

"The proposed Dalton Power Station provides an option to help New South Wales meet peak demand and manage its energy security."

AGL said that the facility has been designed as a peaking plant, which could add additional generation capacity to the grid when needed, and would complement intermittent renewable energy sources.

The Department of Planning and Environment has extended a public feedback period by two weeks to allow local residents more time to respond to the latest developments.

@AusBNOnline

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