Antinuclear

South Australian govt should buy gas-fired electricity generator – economist

SA power: Taxpayers should buy gas-fired electricity generator, top economic advisor says, ABC News 8 Mar 17 By political reporter Nick Harmsen The South Australian Government should consider buying or leasing a gas-fired electricity generator to help stabilise the state’s expensive and unreliable power supply, South Australia’s influential Economic Development Board says.

The recommendation was made to the Government late last month, according to evidence given to the SA Parliament’s Statutory Authorities Review Committee.

Board member Goran Roos told the committee in the absence of progress on energy policy at a national level, South Australia should consider going it alone.

“In the medium term, which is one to two years, the South Australian Government should consider direct control of electrical generation facilities either through acquisition or leasing arrangements coupled with long-term back-to-back take-or-pay contracts with end users,” Professor Roos told the committee.

“A suitable facility could be the second … Pelican Point gas turbine.”

The second unit at Pelican Point was mothballed in 2013, and was seldom used until the second half of last year.

The unit controversially remained idle while 90,000 homes and businesses had their power blacked out during load shedding last month.

“ENGIE has argued that the second Pelican Point gas turbine cannot compete with cheaper wind energy and it is commercially unviable to occasionally switch on the gas-fired power plant to meet requirements for a few high-demand days across the year,” Professor Roos said.

“As such, the acquisition costs or lease costs for the second gas turbine should be minimal on an NPD basis, should the Government choose to acquire or lease this facility.

Government should guarantee gas supply

The board has also recommended the Government consider guaranteeing the gas supply of generators on a short-term emergency basis if it believes the national Electricity Market Operator (AEMO) is failing to protect the state’s supply…….http://www.abc.net.au/news/2017-03-07/taxpayers-should-buy-gas-fired-power-station/8331228

March 8, 2017 - Posted by Christina Macpherson | energy, South Australia