Australian utility Delta Electricity is to build a new gas-fired power station on the central coast of Australia. The 660MW peaking plant will be located at the existing Munmorah power station and will produce power during peak demand periods.

French engineering conglomerate Alstom will construct the gas-fired facility, which is due to be completed by December 2009. Delta said that its A$500 million investment will help the company to deliver secure and reliable energy supplies, especially at times of peak demand.

Jim Henness, chief executive of Delta Electricity, commented that the plant will complement the company’s existing portfolio of generation assets. Mr Henness added that the station is one of a suite of projects the company has initiated to provide for the electricity needs of the future.

Mr Henness said: Gas-fired power stations can be started and operating within a few hours compared to coal-fired power stations, which can take up to two days to be fully operational.

Ian Macdonald, New South Wales’ minister for energy, welcomed the move. He said: Munmorah provides an environmentally responsible way to meet our state’s growing demand for electricity. Gas-fired plants produce about 40% less greenhouse gas emissions when operating compared to coal-fired power plants.

Mr Macdonald also said that the plant will help to ensure that consumers in the New South Wales region can receive reliable and reasonably priced electricity.