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Adelaide desal plant costs $88,000 a day, but it’s still unclear whether it can help the River Murray crisis

Adelaide’s $2.2 billion desal plant is sitting idle but still costs us a fortune. Now it’s going to take another $400,000 to work out if it can help fix the River Murray crisis.

Summer outlook 'dire' for Murray-Darling

A report into whether South Australia’s $2.2 billion desalination plant could help save the drought-stressed River Murray is seven months overdue.

And MPs who called for the feasibility study’s “immediate” release have also raised concerns at the $88,000 daily cost to keep the desal facility at Lonsdale operational - with the plant’s total cost reaching $250 million since it was built in 2011.

The Commonwealth is still waiting on the findings that would determine if Adelaide’s desal plant could be used to offset environmental water for Australia’s largest river system.

As the basin states struggle with the drought and how they will provide water to farmers – while trying to keep the Murray Darling Basin River system healthy – the long delay has placed further pressure on Environment Minister David Speirs.

Centre Alliance Senator Rex Patrick and Opposition Environment spokeswoman Susan Close both demanded for the urgent release of the feasibility study.

During the week, Senator Patrick, in Senate estimates, quizzed the Department of Agriculture Deputy Secretary Malcolm Thompson if there had been any discussions with SA about using the desal.

Adelaide desalination plant photograph at Lonsdale. Picture: File
Adelaide desalination plant photograph at Lonsdale. Picture: File

Mr Thompson said South Australias has identified the plant as a possible way to contribute for efficiency measures for the 450GL of environmental water required to be delivered under the Murray Darling Basin Plan.

“We have continued our conversations with SA officials about that,” Mr Thompson said.

“That’s ongoing ... that’s still live.”

In February Mr Speirssaid the State Government would consider using the desal plant but would not do so without assistance from the Commonwealth to avoid any bill hikes for SA Water customers.

The discussion over the desal proposal became a key Federal Election issue months before May election.

Documents show Mr Speirs and Federal Water Resources Minister David Littleproud signed a $387,600 deal for the final feasibility to the delivered to the Commonwealth by March 29, 2019.

Mr Speirs told the Sunday Mail yesterday the State Government is working with the Federal Government through the final stages of the report.

“And I expect this to be released in the coming months,” he said.

SA Water Minister David Speirs. Picture: AAP/Mike Burton
SA Water Minister David Speirs. Picture: AAP/Mike Burton

Senator Patrick said the desal is a water producing asset that has largely sat idle since early 2015.

“On the face of it, it presents a low risk option for contributing to the Murray Darling efficiency measures program.

“Why is Minister Speirs dragging the chain on completing the feasibility study? He needs to pull his finger out”.

Ms Close said: “As we face another hot summer, on the back of a dry winter, South Australians need to know if this Government is proposing to turn on our desalination plant to lessen the demands on interstate irrigators to undertake water efficiency projects.”

Department of Agriculture Assistant Secretary Water Recovery Mary Colreavy said the big issue is the energy costs associated with running the desal plant.

Figures provided to the Sunday Mail show the cost of running the desalination plant – which is done at minimum levels to ensure it can be used when needed - has been declining.

But last financial year alone operational costs, including power bills, reached $32.2 million – the equivalent of $88,219 a day.

Since opening in 2011, the power bill for the desal plant that includes 200kWp/198kWAC twin rooftop solar power stations, has totalled $139 million.

A SA Water spokesman said to maximise the service life and value of the plant, while minimising electricity costs and the cost-effective delivery of long-term water security for customers, it currently produces water in a minimum production mode for nine months of the year.

“This operating pattern ensures the plant can be quickly ramped up whenever necessary, and was assessed as the most prudent way to operate the facility by independent expert analysis.”

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Original URL: https://www.adelaidenow.com.au/news/south-australia/adelaide-desal-plant-costs-88000-a-day-but-its-still-unclear-whether-it-can-help-the-river-murray-crisis/news-story/714b21f36a536b4a0abf6c020a69a1be