The contract has secured construction of a 280MW solar farm at Cultana and a 100 MW battery near Port Augusta
South Australian government signs 10 year long deal with ZEN Energy to recover from the aftermath of COVID. (Credit: Zsuzsa Bóka from Pixabay)
The Government of South Australia has awarded a ten-year energy supply contract to South Australian company ZEN Energy.
This contract is expected to create around 8oo jobs besides generating cleaner and cheaper energy.
Furthermore, the contract has secured construction of a 280MW solar farm at Cultana near Whyalla, which is claimed to become the largest in South Australia once operational, and a 100 MW battery near Port Augusta.
The 280MW project is claimed to become the largest solar farm in South Australia once operational, while the Port Augusta project would be the state’s fifth grid scale battery.
Zen Energy to supply power until 2030
Minister for Energy and Mining Dan van Holst Pellekaan said: “We’re committed to building what matters, using our budget to drive jobs and growth to recover from COVID-19.”
ZEN Energy will supply power to the state until 2030. This 10-year agreement commenced from 1 November this year and is expected to help save around $12.8m for taxpayers compared to the earlier power arrangements.
The minister said that these two projects will be delivered “in partnership with SIMEC Energy Australia.”
The minister further added: “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.”
Once the projects become operational, these are expected to reduce emissions and lead to price reductions as well as save $10 on average for households in the state on their power bills.