South Australian Government to Be Powered by Solar, Wind

New electricity retailer SIMEC ZEN Energy has won the contract to supply the South Australian Government until at least 2020.

Under the contract, SIMEC ZEN Energy will supply more than 80 percent of the government’s electricity needs in 2018. This will escalate to 100 percent in 2019 when it will be backed by local renewable energy projects.

In September, ZEN partnered with global company GFG Alliance to launch SIMEC ZEN Energy to help large industrial customers in South Australia use clean renewable energy to meet their demands.

The South Australian Government, which has been a world leader in adopting renewable energy, will be SIMEC ZEN Energy’s first electricity customer. This is expected to help SIMEC ZEN Energy attract other customers, bringing much needed competition to the retail electricity market and putting further downward pressure on prices.

SIMEC ZEN Energy will also provide the state government with ongoing retail services for five years from Nov. 1, 2020, during which time the whole of the state government’s load will be supplied by the Aurora solar thermal plant at Port Augusta.

In October, the Board of ZEN Energy approved a strategic plan to establish 1 GW of additional dispatchable renewable generation assets to provide access to lower cost, reliable and low emission energy.

The projects in the Upper Spencer Gulf region about 300km north of Adelaide include:

  • 200 MW of solar PV, comprising 80 MW in the Whyalla Council industrial area, expanded by 120 MW on adjacent land owned by Liberty OneSteel;
  • 100-MW/100-MWh battery at Port Augusta;
  • 100 MW of demand response at the Whyalla Steelworks and other South Australian sites;
  • 120-MW/600-MWh pumped hydro storage facility at a disused iron ore mine pit in the Middleback Ranges.

Chairman of SIMEC ZEN Energy and the GFG Alliance Sanjeev Gupta said working hand in hand with governments to deliver solutions to real problems in the market place had long been the hallmark of GFG Alliance.

“This is the beginning of a journey that will see SIMEC ZEN Energy redefine the energy landscape of Australia, bringing down costs dramatically and making globally competitive energy a key advantage for Australian industry,” he said.

“This will drive jobs and growth, it will encourage the private sector to invest and entrepreneurs to take more risk, not only in South Australia but across the country.”

South Australian Premier Jay Weatherill said the contract would support the entry of home-grown renewable energy company SIMEC ZEN Energy into the retail market.

“It’s fantastic that we were able to secure the electricity to supply our hospitals, schools and electrified rail for the next few years while supporting the growth of a new retail business that will bring some much-needed additional competition into the energy market,” he said.

South Australia leads the nation in the uptake of wind energy and rooftop solar with renewable sources accounting for more than 40 percent of the electricity generated in the state. However, the closure of two coal-fired power stations in recent years has increased South Australia’s reliance on energy supplies from the eastern Australian states, particularly in times of peak demand.

This article was originally published by The Lead South Australia under a Creative Commons license.

Lead image credit: CC0 Creative Commons | Pixabay


  • The Lead South Australia is a unique news service to tell the story of South Australia to a global and national audience to encourage investment, business, tourism and knowledge in and about the State.

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The Lead South Australia is a unique news service to tell the story of South Australia to a global and national audience to encourage investment, business, tourism and knowledge in and about the State.

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