AGL Energy has deferred its decision to mothball half of its gas-fired Torrens Island power station in Adelaide.
The energy producer and retailer said it reversed the mothballing plan - announced in 2014 - because electricity supply had tightened in South Australia since the recent retirement of other power plants.
The company had been due to shut four of the eight generating units at Torrens Island in 2017. It will now review market conditions annually to determine the future plans for the units.
South Australia's last coal-fired power plant, at Port Augusta, was shut down in May as the government-backed push into renewable energy made older coal-fired power plants unviable, prompting a warning from lobbyist the Australian Energy Council that the state faced supply risks during peak demand.
