Green energy growth into SA market

Adelaide Advertiser
Thursday 15/10/2009 Page: 46

VICTORIAN-BASED energy company Diamond Energy has applied to enter the South Australian retail market in a national push to grow the company and capitalise on commercial "green-energy" sales. The company will build on its Victorian retailing licence by entering the SA, NSW and Queensland markets. Managing director Tony Sennitt said the company did not intend to have a local presence in the short-term. "As we build generation and retail capacity, we will manage it from Victoria, but when we get plant and sales projects going forward, we are looking at moving into the states," he said. "We have had the model running in Victoria for a couple of years, so it is just a matter of extending our market into the other states, the processes are already there."

The company will focus on selling power generated by its solar, wind and bio-mass projects to new commercial customers, but also will be battling a changing marketplace. "Since the Government made their 20% renewable energy target, we have seen a halving of the value of renewable energy certificates," he said. "In May, it was around $50 - now it's down to $25. "That's why we try to link through directly to customers."

Mr Sennitt would not disclose the company's revenue or customer base, but said he was confident the Essential Services Commission would approve the company's application. Diamond Energy entered the Victorian market in 2007. The company now takes part in several low-carbon projects across Australia through its joint venture with Lend Lease Ventures, a subsidiary of property developer Lend Lease Corporation. The commission is accepting submissions on Diamond Energy's application until November 6.