The South Australian Business Chamber Executive Director Industry and Government Engagement, Anthony Penney, said that in a review of the procurement of the generators last year, it was found that the State Government would incur up to $267m in costs to move the generators to Outer Harbour and Bolivar, connect them to gas and maintain them.
“The South Australian Business Chamber hopes the leasing agreement will lead to increased competition in the market and lower costs for householders and businesses, who still tell us that high power prices are among their biggest operational concerns,” Mr Penney.
“The leasing deal will save the State Government millions of dollars in anticipated maintenance and moving costs, and therefore saving taxpayers those future imposts while at the same time having back-up generation available if needed.”
The nine emergency generators were used in January this year when temperatures hit a record 46.6 degrees in Adelaide.
The generators will be leased to Infigen and Nexif, enabling them to complement their renewable energy assets. They will now be used daily, rather than in emergencies only.
Under the agreement, the Australian Energy Market Operator or the South Australian Minister for Energy and Mining will be able to order the operators of the generators to bring them into service if there is a potential supply shortfall and they are not already operating at full capacity.
For further information or to arrange an interview please contact Verity Edwards on 0412 678 942.
28 August 2019
