$750m power station to meet summer demand

Adelaide Advertiser
Friday 26/11/2010 Page: 8

A GAS-FIRED electricity power station will be built near Mannum to help meet peak demand over summer months. The State Government today will approve construction of the Cherokee Power Station at Tepko. The $750 million project would create 400 jobs, Industry and Trade Minister Tom Koutsantonis said.

"This is a major infrastructure project with enormous benefit not just for the Mid Murray, but for the whole state", he said yesterday. "South Australia's electrical loads are increasing in line with the state's economic growth and prosperity. "Cherokee Power Station will deliver a cleaner source of power to cater for the increased demands this will place on the electricity grid, which is currently reliant on coal".

The power station will be built by the Tungkillo Power Company, a wholly owned subsidiary of asset management company Investec Bank. Tepko was chosen as the site so power could be fed into the Tungkillo sub-station and the existing Tungkillo-Tailem Bend electricity transmission line. Energy Minister Patrick Conlon said the power station would reach a maximum generating capacity of 1000MWs by 2021.

"Cherokee Power Station will be a peaking station - which means it will kick in at times of peak demand", he said. "On the completion of its final stage, the facility will be capable of meeting up to 25% of the state's peak demand "The first stage of the project will create 250MW of generating capacity at an estimated cost of $200 million and is scheduled to come on line in 2013".

Investec Bank's head of project and infrastructure investment Mark Schneider said the company had found South Australia "an ideal place in which to invest". "We have undertaken extensive consultation and negotiation with landholders surrounding the proposed development site", Mr Schneider said yesterday. "We are confident the local community is right behind the (power) project".