South Australian Gas Power Plant
Preferred bidder announced
Greenfield (construction) or brownfield (government asset divestment) projects needed or likely to occur within the next five years, but is not formally proposed by a state, territory or major local government.
The project or divestment is supported by a state, territory or major local government, is subject to studies or other processes (such as pre-feasibility or scoping studies or business case development), and is likely to proceed to formal announcement.
The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.
The project or transaction is under procurement (such as a call for Expressions of Interest, requests for tender, or another offer to the market).
Preferred bidder announced
A preferred bidder has been selected and is in exclusive negotiations.
Projects that have progressed to contractual close remain on ANZIP for 12 months.
ANZIP is focused only on major infrastructure activity, above the following thresholds:
Construction projects: > AUD$300m
Investable greenfield & brownfield: > AUD$100m
All greenfield and brownfield projects and divestments: > NZD $100 million
In March 2017 the SA Government released its energy plan, with the construction of a new state-owned gas power plant sitting at the centre of the $550 million programme.
The release of the energy plan followed the state-wide blackout in September 2016, and major price spikes in the energy market. The SA Government expected the new power plant to have the capacity to supply up to 250 megawatts of energy. The Government also noted that the power plant will not be a participant in the energy market and is only intended to be utilised in times of an emergency.
The SA Government called for Expressions of Interest (EOI) for the design, build, operation and maintenance of the facility in March 2017. The two week EOI period closed on 11 April, with 31 EOIs received.
On 13 November, the SA Government announced that APR Energy had been awarded the contract and will supply and operate nine dual-fuel GE TM2500 aero derivative turbines with a total capacity of 276 megawatts. Initially, the generators will be located at two locations, Lonsdale and Elizabeth, and operate on diesel fuel over the next two summers. It will then be relocated to a permanent location at the southern end of the Bolivar Waste Water Treatment Plant and converted into a gas power plant, which is set to be operational at the site from summer 2019/20.
Currently, the generators are owned by APR Energy and leased by the SA Government and already connected to the grid. The SA Government has indicated that it will purchase these assets as part of the SA Energy Plan to secure the State's energy supply with a government-owned gas power plant.
The SA Government has stated that the total cost of the power plant is within the $550 million budgeted for the SA Energy Plan.
Last reviewed: 17/08/2018