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Hon Dan van Holst Pellekaan MP, Minister for Energy and Mining

The South Australian Government has today issued a market notice outlining its intent to commence an open market procurement process for the supply of 100% of the government’s electricity load.

The electricity market has undergone significant changes recently and the State Government is confident a range of new competitors and projects will be interested in securing the contract.

“The State Government will ensure that taxpayers get the best deal possible whilst delivering more affordable, reliable and clean electricity for all South Australians,” said Minister van Holst Pellekaan.

“We’re seeing green shoots in our energy market, and we’re keen to get the best outcome in this new landscape.”

“This market notice allows the State Government to start engaging with the market and shaping an invitation to supply that will deliver the best outcome for South Australia.”

“It’s important that the State Government understands potential innovative market responses before issuing Invitation to Supply later in the year.”

The State Government will be discussing with the market the opportunity to achieve the following goals:

  • supply of electricity for 100% of the government’s electricity load;
  • lowest cost to the South Australian Government;
  • improved innovation and competition in wholesale and retail electricity markets;
  • contribution towards the South Australian Government’s commitment of making electricity cleaner, more affordable, reliable and secure for all South Australians; and
  • economic contribution including industry participation policy.

The State Government is returning to the market following the failure of SolarReserve to reach financial close after numerous extensions to its arrangement.

The South Australian Government is a significant user of electricity consuming in aggregate about 520 Gigawatt hours each year.

The total annual cost of electricity (including all network and other charges) currently exceeds $100 million per year.

The State Government has a retail electricity contract with SIMEC Energy Australia for the supply of electricity and retail services for all SA Government sites - including hospitals, schools and office buildings – until October 2020, with the provision to extend until 2021 if required.

The Market Notice can be downloaded from the SA Tenders and Contracts website