SA Government’s nine emergency generators to become state-owned power plant at Bolivar

THE Government’s nine emergency diesel turbines will officially become one gas-fired power plant in Adelaide’s northern suburbs from 2019.

• Government to lease 276MW of electricity
• Koutsantonis unveils $550m power plan
• Government opts to purchase turbines early

THE Government’s nine emergency diesel turbines will officially become one gas-fired power plant in Adelaide’s northern suburbs from 2019.

The Advertiser can reveal Energy Minister Tom Koutsantonis has received approval to install the turbines at the Bolivar Waste Water Treatment Plant after an initial two-year lease ends.

Mr Koutsantonis said the site would first be required to pass a series of environmental and noise level tests, promising local residents would be consulted during the process.

The turbines are located at the former Holden site in Elizabeth and at Lonsdale in the inner south.

Mr Koutsantonis said ensuring the turbines became a publicly-owned gas power plant was “essential to undoing the damage caused by the privatisation of the Electricity Trust of SA”.

“The Australian Energy Market Operator has said this power plant and our big Tesla battery has significantly improved security of supply in SA and at its permanent location this publicly-owned generator will stand ready to protect households and businesses from unnecessary supply shortfalls,” he said.

The Opposition has heavily criticised the Government for buying the plant more than 12 months before the lease period expired.

Its criticism is expected to be further fuelled by UK billionaire and Whyalla steelworks owner Sanjeev Gupta’s assertion that SA would have a surplus of power within three years, which would significantly reduce the demand on the turbines.

The total cost of buying and leasing the turbines — a central part of the Government’s $550 million energy plan — was revealed to be $339 million in December’s Mid-Year Budget Review.

That figure does not include relocation and operating costs that is expected to total up to $100 million.

Mr Koutsantonis said the Government exercised its option to buy the turbines early to “protect it from any future Liberal Government making the same mistake twice and privatising this essential piece of public infrastructure”.