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SA electricity crisis: Builders sought for $360m gas-fired power station

BUILDERS are being sought for a $360 million taxpayer-owned gas-fired power station that the State Government hopes will stop blackouts and restore stability to the energy grid.

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BUILDERS are being sought for a $360 million taxpayer-owned gas-fired power station that the State Government hopes will stop blackouts and restore stability to the energy grid.

The Government power station was announced as the centrepiece of Premier Jay Weatherill’s energy plan a fortnight ago, which also included building Australia’s largest battery.

SA Treasurer Tom Koutsantonis during a meeting of state treasurers in Parliament House, Canberra. Picture: AAP Image/Sam Mooy
SA Treasurer Tom Koutsantonis during a meeting of state treasurers in Parliament House, Canberra. Picture: AAP Image/Sam Mooy

Treasurer Tom Koutsantonis today launched an expression of interest seeking builders for the gas-fired power station, but refused to commit to having the plant in place by summer.

The Advertiser has previously reported AEMO warnings that frequent and severe forced blackouts are possible in the lead up to the state election, as old coal power stations close down.

Mr Koutsantonis said the Government was making a “dramatic” intervention in the market by building a fast-start emergency gas-fired station that could cover any power shortfalls.

“The market is failing,” Mr Koutsantonis said. “We believe that the market is not delivering certainty to South Australians. “There needs to be more investment in generation.”

Mr Koutsantonis said the lack of clear energy and climate policies in Canberra was putting a freeze on private investment and forced the State Government to step in.

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The Government plant will also provide “inertia services” to the state’s energy grid, which are needed to balance out unreliable supply from wind farms and stop large-scale blackouts.

Mr Koutsantonis said the EOI process would last two weeks from Tuesday and was likely to get “international attention” from possible builders. Asked if the plant would be ready by summer, Mr Koutsantonis said he was seeking to source “backup generation” by December 1.

That technology is expected be huge diesel-powered generators.

Mr Koutsantonis said it was possible to source an “off-the-shelf” gas-fired power station design which could be in place and operating much faster than a build from scratch would be.

No site has been selected, but Murray Bridge and Mallala have been speculated about.

Mr Koutsantonis said Siemens and General Electric both built the style of power station the State Government was seeking, and he would attempt to deliver it at best value to the taxpayer.

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Original URL: https://www.adelaidenow.com.au/business/jobs/sa-electricity-crisis-builders-sought-for-360m-gasfired-power-station/news-story/73ac825774ec495ef6f6d2f7062eeea2