Wind energy a sound investment: SA Govt

The South Australian Government says pouring millions of taxpayer dollars into new wind energy projects is a sound investment, despite current market uncertainty.

Premier Jay Weatherill is confident it is the best long-term renewable source as wholesale prices tumble.

His visit to Whyalla today was a significant signal to local industry and workers.

The E and A company has been awarded a contract by global wind power giant Siemens to construct 20 of the 90 towrs needed for the SNowtown-2 project – the state’s largest.

But with carbon tax to be scrapped for an emissions trading scheme by next year and renewable targets uncertain, the wholesale market is falling.

Taxpayers have poured $2 million into the Whyalla facility to get it over the line.

“This has been a crucial opportunity to allow this company to expand into a new endeavour,” Mr Weatherill said.

The owners acknowledge the current volatility.

“There’s no risk-free place in the sun,” chairman Stephen Young said.

The facility has been gearing up for the Olympic Dam expansion, but when that was shelved, its business splan blew in another direction.

“I wouldn’t call it a consolation prize, I’d describe it as an entrepreneurial business getting on with what it does,” Mr Young said.

It is hoped more business will flow from another controversial wind farm proposal on Yorke Peninsula.

Siemens dismisses community concerns over noise and the visual impact, claiming long-term benefits far outweigh the negatives.

“We see wind actually getting closer and closer per megawatt, it’s approaching where fossil fuels are,” Jeff Connolly from Siemens said.