As reported, the company is proposing to build a 1,000MW gas-fired power plant to be located next to its existing 1,500MW coal-fired plant at Yallourn, Victoria, by 2013.

TRUenergy is also planning another gas-fired power plant to be located adjacent to its existing Tallawarra Power Station, New South Wales. Tallawarra B is expected to double the size of the existing plant, providing an extra 400MW.

According to TRUenergy, the project will not proceed unless the Federal Government increases compensation to power generators under the emissions trading scheme (ETS).

However, the plans for building the power plants are contingent on the final results of the government’s carbon pollution reduction scheme. The company is likely to spend $1.8 billion on the gas-fired power stations should it receive enough compensation under the federal government’s carbon pollution reduction scheme.