The South Australian government has selected a permanent site in Adelaide's north for its state-owned gas power plant.
Nine back-up generators, which are currently leased and running on diesel at two temporary sites, will be permanently installed on gas at a site in Bolivar by the summer of 2019.
The government signed a deal to buy the generators in November, and they will be brought together at Bolivar to form a state-owned power plant, Energy Minister Tom Koutsantonis says.
"This publicly-owned generator will stand ready to protect households and businesses from unnecessary supply shortfalls," he said as he announced the location on Saturday.
The generators will be permanently installed at the Bolivar Waste Water Treatment Plant.
The government has not revealed the total cost of purchasing the generators but said it was part of its $550 million energy plan, announced in March 2017.
That plan included the world's largest lithium-ion battery, which was built by Elon Musk's Tesla in less than 100 days and is now operating.
The plan was developed in response to a number of power issues, including a statewide blackout last summer.