Port Augusta Power Stations

In reply to the Hon. A. KOUTSANTONIS (West Torrens) (18 October 2018).

The Hon. D.C. VAN HOLST PELLEKAAN (Stuart—Minister for Energy and Mining):

The Department for Energy and Mining identified and assessed the options available to the state government and sought advice from a wide range of sources including the Australian Energy Market Operator and other industry stakeholders. The department then provided advice to me as part of a thorough and methodical process to determine the best future for the generators. The advice included information about the South Australian electricity market including the solar thermal plant at Port Augusta and the Barker Inlet power station.

The state government will undertake an open lease by tender process to operate the generators for a 25-year period subject to strict controls to ensure that they operate to help deliver more affordable and reliable power in South Australia.

The lease by tender will not include any government offtake agreement to provide electricity for the State Government's electricity load. As such, the agreement with SolarReserve for the Aurora Solar Energy Project located near Port Augusta is unrelated to the lease by tender process for the generators.

AGL's Barker Inlet power station is currently under construction with civil works well advanced on the northern side of the existing Torrens Island power station.