Power Plant Purchase

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:12): I seek leave to make a ministerial statement.

Leave granted.

The Hon. A. KOUTSANTONIS: As part of Our Energy Plan, the South Australian government, through an initial lease of nine hybrid turbines, now has a 276-megawatt power plant to provide power to South Australians in the event of a projected supply shortage. On 13 November 2017, we announced that the plant was fully operational and available two weeks ahead of schedule. Today, I can officially advise the house that we now have exercised the purchase option to secure the implementation of the permanent emergency power plant solution.

In a historic move, this will be the first power plant owned by South Australians since the privatisation of ETSA in 1999. The state government is currently evaluating a number of permanent site options that meet the requirements of being adjacent to both gas and electricity transmission networks. A community engagement process will be run alongside the engineering studies on a permanent site that meets technical requirements and addresses community expectations. The site must be identified and evaluated quickly to ensure the permanent emergency power plant can be fully operational by the summer of 2019-20.

Even when running on diesel, these turbines are significantly more carbon efficient than coal-fired power stations, including the former Northern power station, which members opposite privatised. When running on gas, they will be more carbon efficient than Torrens Island power station. The GE TM2500 turbines are cleaner and quieter than competitors in the market, such as diesel reciprocating engines, producing up to 94 per cent lower nitrous oxide emissions, significantly less particulate matter and 20 per cent less noise. Recent reports prepared by AEMO have reinforced the risk of electricity supply shortfalls in the National Electricity Market.

Mr van Holst Pellekaan: After analysing your plan.

The Hon. A. KOUTSANTONIS: The power plant will continue to be tested monthly and only dispatched to the grid when required to prevent an electricity supply shortfall. The generation assets will transfer from APR Energy to the South Australian government at the conclusion of the 13-month lease in December 2018. The relocation to a permanent site will be undertaken incrementally during 2019 to ensure that approximately half the capacity remains available to the network at all times.

We always said that a power plant will not compete in the National Electricity Market but will be directed on by AEMO or the Minister for Energy. The state-owned power plant will fall under the purview of the new energy and water services department (E&WS). Our plan has always been about giving greater control of our energy system back to South Australians, and this is precisely what it delivers.

The SPEAKER: I call to order the member for Stuart for interjecting during that unprovocative ministerial statement.