The South Australian Government has signed a new energy supply contract that will help power the state’s COVID recovery, create 800 construction jobs and make electricity cleaner, cheaper, and more secure.
In a decade-long deal with South Australian company ZEN Energy, the contract has also secured construction of South Australia’s largest solar farm and the state’s 5th grid-scale battery.
“We’re committed to building what matters, using our budget to drive jobs and growth to recover from COVID-19,” said Minister for Energy and Mining, Dan van Holst Pellekaan.
“We’re thrilled that 810 new jobs will be created to build the Cultana Solar Farm and Playford Battery which will power the South Australian Government,” he said.
ZEN Energy won the new contract after a rigorous process, to supply power to the State Government through to 2030.
The 10-year agreement commences on the 1st of November and will result in around $12.8 million in savings for taxpayers compared to the previous power arrangements.
Minister van Holst Pellekaan said that the Government used its purchasing power to secure the construction of a 280 Megawatt (MW) solar farm at Cultana near Whyalla and 100 MW battery near Port Augusta – both to be delivered in partnership with SIMEC Energy Australia.
“This is a great outcome for taxpayers, for jobs, for power prices and for grid security,” he said.
“The $660 million investment to deliver these two projects includes the creation of up to 810 new jobs at the peak of the construction phase and around $40 million in local goods and services.”
“These projects will be a coup for the communities of the Upper Spencer Gulf.”
“This new contract will allow ZEN Energy to grow its business customer base, enter the residential retail market and improve both the security and reliability of the grid with the state’s 5th grid-scale battery,” the Minister added.
He further detailed that once operational, these new assets will have a positive impact on competition in South Australia and deliver emissions reductions and price reductions, saving South Australian households $10 on average on their electricity bills.