AGL to supply renewable energy to power Adelaide's $1.8 billion dealination plan

09 Sep 2009

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The $1.8 billion renewable enregy-based desalination plant being set up in Adelaide will coast the South Australian government $75 million a year, according to the opposition party.

Opposition leader Isobel Redmond said the 20-year contract with power provider AGL Energy Ltd will see a total outflow of around $1.5 billion over the contract period.

She added that it demonstrated the government's inability to manage things on behalf of the people of the state in a better way.

Prime minister Mike Rann, on the other hand, said using renewable energy from existing generators would help limit greenhouse gas emissions.

He said the desalination plants are highly energy intensive and the state wanted to be certain that the plant at Adelaide would be hundred per cent powered by green energy.

According to Greens MP Mark Parnell, new renewable sources should be built rather than sourcing energy from existing market and for every new source of demand there should be a new source of supply.

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