Strike Energy has received Certified Reserve Capacity by the Australian Energy Market Operator for its proposed gas power station at the South Erregulla gas field in Western Australia.
The Certified Reserve Capacity (CRC) award is a milestone for the project as it prepares for Strike Energy to undertake the final investment decision in November 2024.
Strike Energy director and chief executive officer Stuart Nicholls said it paves the way for South Erregulla’s path to market.
“The project capitalises on the incremental value that integrated gas to power projects can generate from the spark-spread during peak power prices and WA’s capacity credit mechanism,” Nicholls said.
“Upon receiving confirmation of our minimum network across quantity, we look forward to taking a final investment decision.
“Strike’s proposal to integrate the South Erregulla gas field into a dedicated peaking gas power station to firm local renewable power generation is a clear demonstration of how Strike is using its gas endowment for a positive impact in Western Australia’s energy transition.”
In September 2024, the Australian Energy Market Operator is planning to publish the price per MW for capacity credits associated with the CRC award.
At 85MW of capacity, this is equivalent to annualised revenues of $15 to $20 million.
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