SA Solar 150MW – No Go / SA Solar 150MW – No Go




By Paul Raftery
South Australia has been a place of much activity in seeking energy solutions since the black-outs of   summer 2016. This is something that Australians will not tolerate – No Air-Con when we want it!
In South Australia, there have been many attempted answers to supply local environmentally friendly power and of course there has been the “Big Battery.” – Thanks to Mr Musk.
In the Aurora project what was proposed was a 150MW solar unit which used a newer technology - - harnessing the sun’s energy using a combination of lenses and reflectors to concentrate the energy to heat molten salt to produce steam to drive a turbine. The technology uses molten salt as a storage medium which allows power to be despatched 24/4.  The proposed technology was to be provided by SolarReserve which operates a plant like that proposed in Nevada (see https://www.solarreserve.com/en/)
The project was to be located some 310 km from Adelaide at the city of Port Augusta and it would in part replace the Northern Power Station (2 * 260 MW coal fired steam turbines) closed in 2016 with  the loss of 165 jobs. The consequences of this have been a considerable increase in the price of power in South Australia. (see Griffiths, Luke, “$650m solar project axed”, The Australian, 6-7 April, 2019, p. 31) (or https://www.theaustralian.com.au/nation/politics/650m-sa-renewable-project-brokered-by-jay-)weatherill-canned/news-story/b678787002de642f055d045880f4c632)
The construction price touted for the 150MW unit was AUD 650m. It was to create 650 jobs during construction and 50 during its operational phase.
In September 2018 SolarReserve announced its proposal which would see the most of the components made locally. (See https://www.solarreserve.com/en/newsroom : SolarReserve%20Teams%20with%20Heliostat%20SA%20to%20Create%20South%20Australian%20Jobs.pdf
The Federal Government committed AUD 110m of funding to the project in August, 2017.
The reality is the technology is too expensive. As the ABC notes the Crescent Dunes (Nevada) plant was “… aided by a concessional loan of $US737 million ($1,040 million) from the US Department of Energy. Despite that subsidy, it was contracted to supply electricity to Nevada at $190 a megawatt hour. Not cheap.” (https://www.abc.net.au/news/2018-10-05/port-augusta-becomes-australian-renewable-energy-hub/10338812).
The South Australia’s plants proposed numbers have not been disclosed, but if speculation is correct that the production cost is $78 a megawatt hour, and a capital cost of $650m, we can guess why the market would not fund it.
Tabatinga (www.tabatingasg.com) is currently working on solar projects in Argentina and Colombia. We tell our clients we need to work with best proven technology. We mean by this we need purchase working technology which we know the capital and operating cost of we know what it will cost to buy and run. We need ensure that they are realistic in what they seek as we are generally in a tender situation or at minimum need finance.
This outcome is sad for all concerned as the expectations of new jobs created short and long term has gone.
Paul Raftery
End.
 

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