SA government signs new power deal

·1-min read

The South Australian government has signed a 10-year deal for the supply of power to government services including schools and hospitals, which it says will save taxpayers more than $12 million.

The contract with Zen Energy will allow the company to grow its customer base, enter the residential market and improve the supply and reliability of the SA power grid, Energy Minister Dan van Holst Pellekaan says.

As part of the new arrangements, SA has also secured construction of a new solar farm and grid-scale battery which will be used to meet the government's energy needs.

The Cultana Solar Farm will be built near Whyalla, in the state's mid-north, and the 100 megawatt Playford Battery at nearby Port Augusta.

The $660 million investment is expected to create 800 jobs during the construction phase and provide a $40 million boost to the local area through the purchase of goods and services.

"This is a great outcome for taxpayers, for jobs, for power prices and for grid security," Mr van Holst Pellekaan said.

"It's a big solar farm and a big battery, with big savings for taxpayers, creating a big jobs number."