ABC

Energy generator AGL is planning for future expansion of Torrens Island power station in Adelaide.

The plan is to increase peaking generation at the plant by more than half, to help deal with summer airconditioning demands.

AGL wants to spend up to $800 million on building two large or four small new gas turbines and new liquefied gas storage facilities.

Chief executive Michael Fraser says AGL will consult with government, council and community groups and assess market conditions before deciding when to start the expansion project.

A planning application will be submitted in January and the company hopes building will start in about two years.

"We expect to have the approvals in place by about the middle of next year and then we'll be looking to the timing of an investment decision at the back end of next year. This could be completed quite frankly within four or five years if we started construction within the next two years," Mr Fraser said.

Premier keen

Premier Mike Rann has given his endorsement to the AGL's plan.

"What it's about is making sure that we've got extra capacity, extra peaking capacity for those hot summer days, the likes of which we're about to see over the next few months," he said.

"AGL informs me that when the expansion is fully developed, it will be capable of producing 700 megawatts of peaking generation. Combined with the existing Torrens Island power station it will make it one of the biggest power stations in Australia.

"This expansion not only provides the state with greater energy security but will also provide hundreds of jobs for South Australians during the construction phase."