AGL said late last week said the Australian Competition and Consumer Commission had approved its purchase of the Torrens Island Power Station from TRUenergy for $417 million.

The transaction is due to be complete by July 1.

AGL managing director Paul Anthony said the acquisition was strategically important for the company and would add to its growing stable of low-carbon emission generating plants.

“It provides valuable base, intermediate and much-needed peaking capacity as well as the potential to further develop the site for a new combined cycle gas-fired power station,” he said.

Anthony said the deal also increases the company’s low-carbon generation portfolio. More than 75% of AGL’s generation capacity comes from gas, hydro or renewable sources with planned development projects set to increase this to more than 85%, he said.

AGL last year acquired 736MW of renewable generation capacity, making it one of the largest renewable energy producers in Australia.

Its total generation capacity stands at 3330MW either in current operation or under construction.