Energy Crisis

Energy regulator decision scuppers 60% of planned gas plants

Single Energy Market committee rejected proposals to give more flexibility to capacity contracts if projects are held up by third-party delays

Two capacity auctions may now be scrapped as developers continue to warn that the gas-powered projects are becoming increasingly unviable

Six large-scale power plants which secured capacity contracts earlier this year are on the brink of being terminated as projects after the energy regulator rejected a proposal to introduce more flexibility to the terms of the payment contracts.

The rejection means that over 1,100 megawtts (MW), or up to 60 per cent, of the total 1,870MW of gas-fired power capacity secured earlier this year after two capacity auctions may now be scrapped as developers continue ...