Picture of the proposed land for Tarrone Power Station
Project description
AGL’s Tarrone Power Station is gas-fired peaking power station proposed for Tarrone, Victoria. If developed, it could generate up to 1,200 megawatts (MW) of electricity, enough to power approximately 400,000 average Victorian homes annually.
AGL has not made an investment or development decision and has no immediate plans to begin construction.
About the project
The power station would be located on AGL-owned land at the corner of Riordans Road and Landers Lane, Tarrone, within Moyne Shire. The site is next to the Tarrone terminal substation and is within the South West Renewable Energy Zone.
Gas-fired peaking power stations provide flexible generation that can start quickly when the electricity system needs additional supply. This can include periods of high demand, low wind or solar generation, extreme weather, or when available short-term storage is insufficient. The Tarrone Power Station would help support grid reliability through the energy transition as coal-fired generation is phased out and renewable generation and storage continue to grow.
The location provides access to the Tarrone terminal electrical substation, the Moorabool–Heywood 500 kV transmission line and existing gas infrastructure through the SEA Gas pipeline.
This map illustrates the location of the proposed Tarrone Power Station in relation to the surrounding area.
Development status
EPA Victoria granted the Tarrone Power Station development licence in 2014 following environmental and cultural heritage assessments and stakeholder engagement. The project was also referred under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 and Victorian Environment Effects Act 1978, with no further assessment required under those processes at the time.
AGL is seeking to extend the development licence expiry date by 10 years, providing additional time for planning and development. EPA Victoria will assess the application under current Victorian environment protection legislation, and AGL would remain responsible for complying with all licence conditions.
Extending the licence does not mean the Tarrone Power Station will be built. AGL has not made an investment or development decision and has no immediate plans to begin construction.
If developed, Tarrone could provide flexible electricity generation when additional supply is needed. Advances in turbine technology mean the project could have a generating capacity of up to approximately 1,200 MW, subject to final equipment selection and detailed design*.
*Estimated based on a 20% capacity factor.
You can read more about the Development Licence Extention here:
Tarrone Power Station - Fact Sheet October 2026
Tarrone Power Station - Development Licence Amendment October 2026
Have your say
AGL welcomes community and stakeholder feedback on the proposed development licence amendment. Feedback is open from Monday 19 October to Friday 13 November 2026.
Community drop-in sessions
Community members can visit the project team at Willatook Community Hall, 4 Poyntons Road, Willatook:
Visitors can drop in at any time during either session to learn more and speak with the project team.
Feedback and questions can also be submitted by:
Phone: 1800 039 600
Email: tarrone@agl.com.au
Feedback should be provided by 13 November 2026 so it can be considered as part of the amendment application.
AGL understands that we don’t always get it right, and we want to be informed when we don’t. If you would like to provide any feedback, good or bad, or simply ask some questions, please feel free to get in touch via the following channels:
Learn more about how we handle general customer complaints on our complaints page.
