Posted February 20, 2018 12:12:03Tensions are high across Australia after the country’s energy minister said a new state-of-the-art solar farm will not be built in the state.
Key points:Key points Solar energy will be cheaper than existing coal and gas generatorsPower Networks SA says it will invest $2.6 billion in a project to develop solar-electric power in SA and VictoriaThe project will be a joint venture between the state-owned Power Networks SA and a Chinese company.
The $2 billion project is being developed by Power Networks in partnership with China’s State Grid, which is the owner of Australia’s largest wind farm, the Murray-Darling wind farm in Queensland.
Power Networks says it has invested $2 million in the project.
“We believe that this investment will be an attractive proposition for investors, with a cost-effectiveness that is significantly lower than the existing generation of electricity in South Australia,” Mr Zee said.
“Power Networks has already commenced a feasibility study to examine the feasibility of an integrated wind-generation project in SA, and we have already commenced our feasibility studies with the Government of SA.”
Mr Zee says the project will have a cost of $1.8 billion.
“It will cost less to build an equivalent capacity plant in Victoria or New South Wales, but we believe it will be less cost effective,” he said.
Power Network has been involved in projects in the past, but has not announced any projects to date.
In a statement to the ABC, Mr Zellers said Power Networks would invest in an existing solar farm in the South Australian region, but did not have any specific details about the proposed project.
He said the project would be developed by a Chinese firm, with which Power Networks had been in talks.
“This is a very exciting opportunity to expand our partnership and accelerate our efforts to bring solar energy to South Australia, with the potential to create up to 500 jobs and create hundreds of millions of dollars in economic activity,” Mr Smith said.
Mr Zeller said the company would use “significant expertise” from Chinese companies.
“Our intention is to ensure that this is a fully integrated project that is capable of meeting all the requirements of the Government, which includes building an affordable, environmentally friendly, reliable and secure system for generating power,” he added.
Power Systems SA is one of the world’s largest energy companies and has invested billions of dollars to develop and expand its coal-fired power plants in the US and Europe.
It has a long-term interest in the solar industry, having established solar farms in Australia and the US.
Its chief executive, Stephen Jones, said in a statement the company had no specific information to share on the project’s timeline or price.
“However, we are pleased to be joining forces with Power Networks to bring this exciting project to the South Australia market,” Mr Jones said.
Topics:energy-and-utilities,business-economics-and/our-partners,state-parliament,australiaFirst posted February 18, 2018 11:52:31More stories from South Australia