Townsville financing on standby

The Townsville Standby Power Station (TPS), developed by Transfield, represents another pioneering step in the development of the independent power production market in Australia. Uniquely, it is the first privately owned power station designed solely for the provision of standby power. The station, which will initially be fired using either Jet A-1 or distillate, is being developed adjacent to the Queensland Nickel refinery at Yabulu on the outskirts of Townsville in northern Queensland. It will provide peak load support and back-up in the event of high-voltage distribution line failure to Townsville and the far north of Queensland. TPS is based on a single Siemens V94-2 gas turbine generator in open-cycle configuration and is rated at 159.5MW. TPS was awarded a 15-year power purchase agreement (PPA) to provide standby power. This is possibly the last such agreement to be awarded as the Australian market for independent power projects (IPPs) matures. This article provides an outline of the project and summarises the key commercial terms of the transaction. (author)