SA energy plan: 31 expressions of interest to build new gas-fired power station

THE State Government has received more than 120 expressions of interest to build a new gas-power station and a giant battery under its $550 million plan to fix SA’s unstable energy supply.

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THE State Government has received more than 120 expressions of interest to build a new gas-power station and a giant battery under its $550 million plan to fix SA’s unstable energy supply.

Thirty-one companies from a dozen countries, including Australia, China, France, Finland, Spain have sent expressions of interest to build the proposed 250MW gas power plant.

Ninety expressions of interest have been received for the proposed battery, which would be Australia’s largest.

Energy Minister Tom Koutsantonis said the plant would be owned by South Australians and provide standby power for SA in times of emergency.

“The plant will be running all the time to help stabilise the grid,” he said.

Calling it a “dramatic intervention”, the State Government released its $550 million plan a month ago, which aims to stabilise the state’s energy supply and take back more control.

It includes a taxpayer-funded, emergency gas-fired power station, the nation’s largest battery as part of a $150m renewable technology fund, and incentivising gas exploration.

The gas-fired Torrens Island power station. Picture: Greg Higgs

Premier Jay Weatherill says $24 million in gas exploration grants have been awarded to five projects, with a second round of grants open now.

This week, the State Opposition supported the Government’s legislation to give Mr Koutsantonis more control over the SA electricity market, including the right to tell generators when to turn on.

The new laws, which come into effect on April 26, allow him to order individual power stations to switch on in times of need, and regulate how much power is traded between SA and Victoria.

Last week Opposition said it retained grave concerns about how Mr Koutsantonis would exercise the powers, and whether they were fully legal.

“The Government has created this mess over the last 15 years, and now believes it has a plan to fix it,” Opposition energy spokesman Dan van Holst Pellekaan said.

An “energy security target”, which requires retailers to buy 36 per cent of their power from baseload sources in SA, will come into effect on July 1.

“Our plan is all about self-sufficiency. It’s about South Australia standing on its own two feet,” Premier Jay Weatherill said.