State Government calls for proposals for supply of electricity

24Oct

The South Australian Government has today issued a Request for Proposals for the supply of 100 per cent of its electricity needs.

“The Marshall Government’s priority is a contract that delivers lower cost electricity whilst improving competition in the South Australian energy market and reducing pollution,” said Minister for Energy and Mining Dan van Holst Pellekaan.

“The State Government’s electricity contract represents an opportunity to deliver more affordable, reliable and cleaner electricity in South Australia whilst securing the successful bidder’s long term future in this state.”

Available from the SA Government Tenders and Contracts website, the Request for Proposals (RFP) sets out the procurement process and procedure for submitting a response.

The State Government is a significant user of electricity consuming in aggregate about 500 Gigawatt hours each year.

Minister for Energy and Mining Dan van Holst Pellekaan said, “the State Government will ensure that we get the best deal possible for the taxpayers of South Australia, including delivering more affordable, reliable and cleaner electricity in South Australia.”

The RFP allows for proposals for retail contracts, the construction of a new generating plant or combinations that meet the state’s requirements.

The State’s procurement objectives are:

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

The RFP is the first stage of a two stage Procurement Process. Following the evaluation of RFP responses, shortlisted respondents will be invited to respond to a selective Request for Tender (RFT) in the first quarter of 2020.

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 Request for Proposals can be downloaded from the SA Government Tenders and Contracts website, by visiting: https://www.tenders.sa.gov.au/tender/view?id=110007