Managing director Grant King said Origin expected the National Electricity Market (NEM) to move over the next few years from a position of significant oversupply to a state in which investment in additional base-load electricity generation plants was needed.

Origin would only develop power stations when it believed electricity prices were high enough and it was able to develop a plant that could produce electricity at a competitive total cost, according to King.

“Undertaking the development approval and community consultation processes now will provide Origin with greater flexibility in responding to market conditions as they evolve,” he said.

“In addition, Origin’s recent gas discoveries in the Otway Basin and significant gas reserves in south-east Queensland provide an opportunity to develop least cost natural gas-fired power stations that minimise environmental impacts, diversify the generation fuel mix in the NEM and enhance system reliability and security.”

The approval processes are expected to take place over the next 12 to 18 months, after which time final decisions will be made on the project or projects proceeding.