Repairs underway to bring Loy Yang Unit 2 back to service

AGL has today announced the appointment of GE Power Australia Pty Ltd (GE) to complete repairs on Unit 2 at our Loy Yang A Power Station.

Last month, AGL confirmed an extended outage at the unit following an electrical short internal to the generator.

GE has been selected to complete the repair works following an extensive procurement process, involving multiple vendors.

AGL Executive General Manager Group Operations, Doug Jackson said ensuring the unit’s future reliability was a critical factor in selecting a vendor.

"We understand the importance of Loy Yang to Victoria’s electricity supply, GE is the Original Equipment Manufacturer (OEM) and has the expertise and experience to complete this complex repair work,” Mr Jackson said.

"A detailed technical analysis on the generator has been completed and the repair will involve what’s known as a full rewind, which will see the replacement of the original coils and copper parts.

"This will deliver a proven design and engineered solution that meets AGL’s technical specification.

"The capital cost of the repair and upgrades at the station during the outage window will be $57 million. Most of the work will be done by local providers and is expected to create around 200 local jobs during the outage.

"The expected return to service date remains mid-December 2019 and we’re looking at other ways we may be able to increase generation from across our portfolio while these repairs take place,” Mr Jackson said.

"As the market operator, AEMO is responsible for managing system reliability and while there are no forecast shortfalls by this outage, we want to do everything we can to eliminate any impact of the outage on overall supply over this period.

"We have a range of options available due to AGL’s diverse and flexible portfolio that allows us to manage this outage well.

"We’re committed to delivering affordable and reliable power for our customers and we will continue to look at all potential options.

"I want to thank our hardworking teams at Loy Yang who are working to ensure we bring Unit 2 back to service as quickly and safely as possible.

"Since acquiring Loy Yang, AGL has invested $900 million in capital expenditure to ensure it remains reliable and keeps electricity affordable for our customers over the remaining years of its technical life.


About AGL

AGL is committed to helping shape a sustainable energy future for Australia. We operate the country’s largest electricity generation portfolio, we’re its largest ASX-listed investor in renewable energy, and we have 3.6 million customer accounts. Proudly Australian, with more than 180 years of experience, we have a responsibility to provide sustainable, secure and affordable energy for our customers. Our aim is to prosper in a carbon-constrained world and build customer advocacy as our industry transforms. That’s why we have committed to exiting our coal-fired generation by 2050 and why we will continue to develop innovative solutions for our customers.