Alinta plant closure to leave huge economic hole

THE inevitable 2030 shutdown of Alinta Energy’s coal-fired Northern Power Station at Port Augusta, which supplies 30 per cent of the state’s power, will leave up to a $132 million hole in the local economy.

The Northern plant. Picture: Martin Dean.

THE inevitable 2030 shutdown of Alinta Energy’s coal-fired Northern Power Station at Port Augusta, which supplies 30 per cent of the state’s power, will leave up to a $132 million hole in the local economy.

At its annual Port Augusta City Council briefing on Monday night, Alinta Energy updated residents on the life of the plant and its annual 14-16 per cent economic contribution to the city.

Alinta used figures released by consulting firm ACIL Allen, which estimated Alinta’s direct and indirect economic benefit to the region at $117 million to $132 million.

It was the first meeting between Alinta and the council after it abandoned a multimillion dollar solar-thermal project earlier this month because it is not economically viable.

The project, tipped to cost about $577 million with annual operation and maintenance at $8 million, did not meet Alinta’s minimum internal metrics to be considered a commercially viable investment.

Alinta’s ongoing $2.3 million two-year feasibility study to find viable replacement options for its ageing plants is a joint initiative, receiving Federal and State funding.

The stakeholders will meet Thursday to discuss Alinta’s decision.

Port Augusta Mayor Sam Johnson was optimistic about the region’s prospects.

“We are not reliant on just one employer or industry anymore. Local and state governments are the biggest employers here.

“Yes the hundreds of jobs at the coal mine and the power station are important, but we have a supportive state government, other promising projects and ongoing efforts by Alinta to ensure we find a replacement industry.”

Mr Johnson said it was hard for Alinta to plan 15 years into the future with the electricity demand-supply profile of South Australia undergoing dramatic changes.

“Alinta is willing to invest but we need to complete the feasibility study.” he said.

Alinta has already told residents it did not have a plan for the future, local group Repower Port Augusta Alliance’s chairperson Lisa Lumsden said.

“We need the State Government to step in now and support Alinta to make a clear transition plan for this community and the workers at the power station to solar thermal,” she said.

Shadow Energy Minister Dan van Holst Pellekaan said the Leigh Creek coal mine and power plant, which employed about 500 locals, was “as important to the north of our state as Holden is to the north of Adelaide”.

“The biggest difference is that there are far fewer alternative employment options in the country than in the city.

“There are significant opportunities such as the proposed solar thermal power station and the Sundrop Farm development, but we cannot just wait for others to emerge – all levels of government, Alinta and the community must start to work together now.”

Alinta Energy did not want to comment on the meeting.