Investec Studies Market Conditions for Major South Australian Peaking Power Plant

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Researched by Industrial Info Resources Australia (Perth, Australia)--Investec Bank (Australia) Limited (Perth, Australia) is developing the 1,000-megawatt (MW) Cherokee Gas-Fired Power Station to meet South Australia's peak-period electricity demand over the next five to 10 years. The power station will be built in Mannum, which is 65 kilometres (km) southeast of Adelaide.

The Cherokee Power Station will be built as a peaking station in four stages, with a capacity of 250 MW in each stage. At each stage, the power plant will feature a 250-MW turbine to produce the electricity. Upon the completion of the final stage, Cherokee will be capable of meeting up to 25% of the state's peak demand. The project will have an estimated cost of $750 million and will create 400 jobs, making it a major infrastructure project with an enormous benefit to the state.

The first stage of the project was scheduled to be brought online in 2013; however, it was delayed due to low electricity demand in South Australia. Investec is still investigating and assessing the market situations to decide the appropriate time to begin construction. If things go accordingly, Investec will begin construction on Stage I of the project by end of next year. Completion will see the commencement of Stage II.

Investec (Bank) Australia Limited also is developing two solar photovoltaic (PV) projects in Geraldton and Kalgoorlie, Western Australia, with a combined value of $600 million.

The 50-MW Chapman Solar Farm, which will be built 10 kilometres east of Geraldton, Western Australia, is an advanced project with a total investment value of $180 million. Investec has secured all development approvals for the project and is now racing to complete the final commercial agreements, with construction expected to begin early next year.

With an estimated 12 to 14 months until completion, the Chapman Solar Farm is expected to begin operations by May 2015. The power will be transmitted from the Cherokee Power Station through 10 kilometers of transmission line that will run from the Chapman site and connect to the Geraldton substation.

The Mungari PV solar power station is another project that was proposed in 2012 by the same company. It will be built in the Mungari Industrial Estate, located in the Shire of Coolgardie, 23 kilometers west of Kalgoorlie-Boulder. When the development application is approved, Investec will proceed with the remaining approval process to build the solar project, which will become the biggest solar power station in Australia and one of the largest in the world.

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