South Australian government has awarded SolarReserve a A$650m ($511m) contract for the construction of a 150MW Aurora solar thermal power plant in the state.
SolarReserve offered the lowest cost option in the bidding process in which the government was not ready to pay not more than $78/MWh.
The solar thermal plant will be part of the state government’s energy plan and will be located in at Port Augusta.
The plant is expected to create about 650 local jobs during the construction phase and 50 permanent jobs, after the plant’s commissioning takes place.
Construction is scheduled to begin next year and is expected to be completed by 2020.
The Aurora project is expected to proudue synchronous renewable energy that can be added to the grid, whenever needed, even when the sun is not shining. This will add to grid stability and security, while allowing for greater levels of renewable sources to be integrated.
Under normal conditions, the plant will generate about 135MW and it can increase its output during favourable conditions such as in the evenings.
For the project, the state government has signed a generation project agreement (GPA) with SolarReserve for a period of 20 years.
The state government, last year launched the tender process to procure about 75% of its long-term power supply. The aim was to attract new competitors into the electricity market, to drive the costs down and to increase competition.
South Australia Premier Jay Weatherill said: “We are supporting this nation-leading renewable energy project because it will deliver more competition into our energy market and put downward pressure on power prices for households and businesses.
“The Port Augusta story is a stark example of the transition of the South Australian economy, with the closure of a dirty coal fired power station, and now the commissioning of this world leading renewable energy project.
“The Aurora Solar Energy Project will enhance South Australia's reputation as a leader in clean, cheap renewable energy.”
SolarReserve CEO Kevin Smith said: “SolarReserve’s energy storage technology is an excellent fit for the South Australian electricity system. Aurora will provide much needed capacity and firm energy delivery into the South Australian market to reduce price volatility.
“SolarReserve looks forward to continuing to work with the South Australian government and stakeholders, including the Port Augusta community where the project is located, to support Federal and State renewable energy targets, stimulate long-term economic development, and create new jobs and businesses.”
Image: SolarReserve to build 150MW solar thermal project in South Australia. Photo: Courtesy of SolarReserve, LLC.