ANNUAL REPORT 2021-22
ANNUAL REPORT 2021-22
ANNUAL REPORT 2021-22
Chair's message
Territory Generation's business continues to be
shaped by the Northern Territory Government's
policy of achieving 50 percent renewables by 2030
and net zero emissions by 2050. We remain focused
on providing system stability as solar enters our
market, and see that as one of our key roles.
Our fleet transition continues, underpinned by a strategy of investing in more efficient thermal generation assets. We purchased our
first mobile gas turbine in 2021. The TM2500 is smaller than existing Channel Island plant but reacts more quickly to load changes and
is also hydrogen capable. Contracts have been signed and work is underway for the construction of Darwin-Katherine battery, which
will support increased renewable penetration and strengthen the system. We are all excited about this fantastic advance.
The Territory Government has lifted the moratorium on Territory Generation being involved in solar in the Top End. We are now
investigating ways in which this can be used to reduce costs and ensure continued system stability.
We are again able to pay a dividend to the Territory Government and continue to manage costs that we can control effectively.
Finally, thank you to our staff. The pandemic meant that the past financial year was an extraordinary time for everyone, but
you responded magnificently, following the required protocols in a highly professional, community-minded way. Despite all the
interruptions caused by the pandemic, you remained dedicated to providing power to Territorians and to maintaining safety as the
core of our business. Thank you.
DENNIS BREE
C DANCER
911
Katherine Power Station's K3 open
cycle gas turbine undergoing
routine maintenance.
Chief Executive
Officer's message
Despite the disruption of COVID-19, I am incredibly proud
to report Territory Generation's strong performance in the
2021-22 financial year, especially in plant availability,
reliability and Health & Safety. Undoubtedly, COVID-19
has been one of the most unsettling events in modern
times. I thank our workforce for the flexibility and
resilience demonstrated throughout the pandemic while
delivering reliable electricity production. We have proven
that we can adapt to varied working environments
while keeping safety at the core of everything we do.
Risk management has been a critical improvement to our organisation over the past 24 months. Through our focus on de-risking
the business, we have reduced eight 'very high' rated risks to only one. We have also implemented numerous organisational and
process changes to allow our work management, asset management and project management functions to mature. These changes
have enhanced our operational performance and helped the business deliver safe, reliable, efficient energy and system services. As a
result, we have successfully delivered the operational and financial commitments made in our 2021-22 Statement of Corporate Intent
to our government shareholder.
Being the largest producer of wholesale generation in the Northern Territory, we know our role in supporting the security of the
power systems we operate in is critical. The power systems continue to change with increasing renewable energy penetration
via behind-the-meter solar and the connection of utility-scale solar generation. As a generator, we developed a Fleet Transition
Plan, which aims to assist with meeting the future requirements of the power system by providing more flexible, smaller, fast-
start generation with hydrogen capability. We have taken the first steps in this transition by purchasing the TM2500 gas turbine
and starting the large-scale battery energy storage system in the Darwin-Katherine grid. These projects are expected to reduce
CO2 emissions by approximately 58,000 tonnes per annum. Testament to our continued emphasis on and commitment to our
environment, social licence to operate, and robust governance framework, this goes well beyond reducing our direct emissions
impact it is how we responsibly conduct and run our business.
In support of the Government's Darwin-Katherine Electricity System Plan we continue to be the conduit, enabling more private
investment in renewable energy in the Northern Territory. We are also building our longer-term strategy to create a brighter future
for the business and determine how we can further participate in renewable generation.
The most satisfying investment is in our people. A strong technical team is critical to our success, and we continue to invest in quality
training packages to support our people to grow professionally and personally, which results in greater satisfaction in their work. We have
also invested in our engineers by offering them a supported pathway to obtain their chartered status. We are creating opportunities for
early career starters to enter the workforce and grow through our graduate and shining apprenticeship program.
I sincerely appreciate the exceptional efforts of all our teams in driving the business forward and their commitment to operational
and safety excellence. Finally, I thank our Board of Directors, Shareholding Minister and Portfolio Minister for their continuing
confidence and support in Territory Generation.
GERHARD LAUBSCHER
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