Sanjeev Gupta’s $US1 billion energy project could see SA export electricity

A GROWING pipeline of renewable energy projects across the state can both safeguard SA against blackouts and export excess power interstate, experts say — after industrialist Sanjeev Gupta announced a US$1bn energy plan for the Upper Spencer Gulf.

• One year on, Whyalla is a city defined by optimism
• Sanjeev’s power plans increase tenfold
• Sanjeev Gupta says his plans will transform SA’s power market
• GFG Alliance looks at more iron ore

A GROWING pipeline of renewable energy projects across the state, including several solar farms, will not only safeguard against blackouts but pave the way for the export of excess electricity interstate, experts say.

British industrialist Sanjeev Gupta on Wednesday announced a US$1 billion energy plan for the Upper Spencer Gulf.

It adds to numerous projects, including the $400 million Bungala solar farm under construction near Port Augusta, and the recently announced Solar River Project near Burra.

There are now close to 30 solar, wind and battery storage projects under construction or in planning phase across the state, with the potential to add more than 6000MW to the grid. That represents more than double the state’s average peak demand of about 3000MW.

Clean Energy Council energy transformation director Lillian Patterson said the additional supply would reduce power prices and eventually could be exported to the eastern states.

“All the extra renewable energy projects entering the system are expected to drive down the average household energy bill for South Australians by hundreds of dollars a year by early next decade,” she said.

“SA has a genuine opportunity to export solar and wind power to other states on Australia’s east coast … a more flexible national grid with better connection between states will allow clean energy to be exported more effectively as the country’s old coal plants continue to close.”

Renewable projects in the pipeline for South Australia.

An area the size of 550 Adelaide Ovals will be covered in 780,000 solar panels as part of Mr Gupta’s audacious $US1 billion energy plans for the Upper Spencer Gulf.

Mr Gupta’s company, GFG Alliance, which bought the Whyalla steelworks and iron ore mines last year, on Wednesday morning announced the first 1GW of dispatchable power as part of plans to provide cheap power to his operations and other users in South Australia.

The project will generate 350 jobs to build the massive solar farm at Cultana, with construction expected to start in the first quarter of next year.

Development approval is expected later this year.

Sanjeev Gupta has announced plans for a giant solar farm near Whyalla. Picture: File image

GFG said the project would involved 600GWh of energy generation per year — enough to power almost 100,000 average homes — drawn from 780,000 solar panels across an area 550 times larger than Adelaide Oval.

“Today’s event is symbolic of our desire to develop and invest in new generation energy assets that will bring down Australia’s electricity prices to competitive levels again, as well as our commitment to local and regional Australia,” Mr Gupta said at an event in Whyalla.

“In particular, this signals the beginning of our journey with a number of stakeholders to not only transform GFG’s operations in Whyalla, but also further enhance the appeal of this great city.”

Mr Gupta said this project — together with SIMEC ZEN’s second solar project, set to be built nearby — will make this one of Australia’s largest solar farms, with even larger projects to follow in other states.

“All of these projects will not only improve reliability and greatly reduce the cost of electricity in our own operations, they will also provide competitive sources of power for other industrial and commercial users, while at the same time playing a key role in the market’s transition towards renewables,” he said.

“We have a strong conviction that traditional carbon-intensive generation sources do not have a long term future as the predominant source of power in Australia and globally.

“We believe the world is undergoing a momentous transition to renewable power as the cost of renewables drops dramatically and quickly.

“It is, however, important that we acknowledge and also support the critical role that coal and

other traditional fossil-fuel-based power must play in this transition.”

British Industrialist Sanjeev Gupta speaks at the Energy Storage Conference at the Adelaide Convention Centre in Adelaide.

Other projects under development by GFG include including cogeneration at GFG’s Whyalla Primary Steel plant using waste gas; the world’s largest lithium-ion battery; and pumped hydro projects at GFG’s Middleback Ranges mining operations.

The news also follows Premier Steven Marshall’s announcement of a $100 million new high school in Whyalla, replacing the city’s three existing schools.

As well, on Wednesday Mr Gupta announced he would donate all the steel required for Whyalla’s new $3.4m jetty.

Whyalla Mayor Lyn Breuer said the council commended Mr Gupta for his vision.

“We’ve already seen Sanjeev invest tens of millions improving efficiencies and reducing input costs for his Whyalla operations, this now marks the beginning of his long-term investment program,” Ms Breuer said.

“Most importantly for Whyalla, this project signals to the nation that Whyalla is open for

development, helping attract industries to our great city and further diversify and strengthen our economy.”

SIMEC ZEN Energy, which is owned by GFG, said it had commenced preliminary consultation discussions with the local community regarding the project.

“SIMEC ZEN Energy will also launch a number of ways to consult with the community on the project, including a 1300 phone number, project website, and consultation events throughout the local area.

Those events will commence with an information stall at this weekend’s Whyalla Show, and people can also request further information via the project email address [e-mail].

Cultana Solar Project — Fast Facts

280MW capacity

780,000 solar panels

1100 hectares in size

550 times larger than Adelaide Oval

600GWh of energy generation per year

Enough energy to power over 96,000 homes

Offsetting 492,000 tonnes of carbon dioxide every year

350 direct jobs during construction phase; 10 ongoing operation and maintenance positions

Upskilling of indigenous and local workforce

Construction expected to commence in early 2019