SA energy plan: Government and Opposition debate costings of temporary power generators

ENERGY Minister Tom Koutsantonis will not say how much the State Government expects to pay for temporary power generators, but has promised the cost will not blow out the plan’s overall $550 million budget.

• THE PLAN: SA Government unveils $550m power plan
• THE RESPONSE: Politicians, industry leaders give their views
• THE ECONOMIST: This could drive down power prices in SA
• THE ANALYSIS: Plan deepens ideological war

ENERGY Minister Tom Koutsantonis will not say how much the State Government expects to pay for temporary power generators, but has promised the cost will not blow out the plan’s overall $550 million budget.

Mr Koutsantonis on Sunday said the Government would release a tender to provide the generators “very, very soon” but would not say how long he expected the state may have to rely on them.

The Government was “aiming” to have the generators in place by December 1, in preparation for summer, he said.

Opposition Deputy Leader Vickie Chapman said the Tasmanian Government had paid $64 million to lease, establish and operate diesel generators to provide 220 megawatts of power over three months.

She argued the cost of temporary generation in SA was not included in the $550 million budget announced by the State Government last Tuesday and she questioned whether this would mean a budget blowout.

“We’re expected to all pay to clean up this mess so we’re entitled to know when the solution is going to be there and what it’s going to cost,” she said.

Mr Koutsantonis responded by reiterating that “on the day that we announced this we said that the $550 million would cover this (temporary generation) as well”.

“The reason we’re not putting a number on it (the cost) now is because we’re going out to tender,” he said.

“When you go out to tender to try to get a competitive price you don’t tell the people you want to get the generators from how much you’re prepared to pay.

“We want the cheapest price possible.”

Mr Koutsantonis argued that operating generators in Tasmania was “very different” to the SA case.

“Tasmania is an island. Its very expensive to move that quantity of generators to Tasmania.

“Adelaide is on the mainland. There are a number of portable generators that are based here in South Australia to meet our remote mining needs.

“There is a much more mature industry for generation here than there is in Tasmania.”

Premier Jay Weatherill and Treasurer Tom Koutsantonis at the launch of the South Australia Energy Policy last week. Picture: Mike Burton

Mr Koutsantonis said he wanted “hybrid” generators which could run on either diesel fuel or gas.

He would not say how long he expected the Government to have to rely on temporary generators.

“Depending on how long it will take to build a generator and how long it will take to build a battery, (until then) we’ll be requiring this sort of generation,” he said.

Mr Koutsantonis also revealed on Sunday that the Government was spending $500,000 on a television, print and radio campaign to spruik its energy plan — which includes building a state-owned gas-fired power plant and an enormous battery to enable more energy storage.