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- Infigen will lease 120 megawatts gas turbine equipment (the SAGTs) from the South Australian Government for 25 years
- The agreement is in line with Infigen’s strategy to provide commercial and industrial customers with reliable and competitively priced clean energy
- The 25-year lease is expected to begin in May 2020 with annual lease payments of $5.02 million
Infigen has agreed to lease 120 megawatts of open cycle gas turbine equipment (the SAGTs) from the South Australian Government for 25 years.
The 25-year lease is expected to begin in May 2020 with annual lease payments of $5.02 million.
The capital expenditure associated with the relocation, civil works, gas and electricity connections and equipment installation is budgeted at $55 million.
Together with its 123-megawatt Smithfield OCGT facility in New South Wales and the 25-megawatt/52-megawatt-hour Lake Bonney Battery Energy Storage System, the SAGTs mark the delivery of Infigen’s firming platform. It also marks a renewable capacity growth of an additional 300 megawatts.
These assets allow Infigen to substantially increase firm electricity sales to commercial and industrial customers in the National Electricity Market (NEM).
“Infigen has operated renewable energy assets in South Australia since 2005. We are pleased to be partnering with the South Australian Government as we lead Australia’s transition to a clean energy future. Our strategy is focused on providing commercial and industrial customers with reliable and competitively priced clean energy,” Chairman Len Gill said.
Under the agreement, four independent aero-derivative units will be leased and are expected to be relocated to a site at Bolivar with a 66kV connection. This will allow Infigen to utilise substantial existing balance of plant and reducing overall capital costs. Once relocated, the units will be transitioned to gas fuel, lowering the short run marginal cost and lowering emissions intensity.
Managing Director and CEO Ross Rolfe state this marks another significant milestone for Infigen.
“Alongside the Smithfield OCGT and the SA Battery, the South Australian Gas Turbines lease marks another significant milestone in the strategic transformation of Infigen into an active energy market participant,” Ross said.
