SIMEC ZEN Energy, part of industrialist Sanjeev Gupta’s GFG Alliance, has struck a deal with the South Australia Government to provide 80 per cent of the state’s energy requirements. This will increase to 100 per cent in 2019 when new renewable power sources come online.
South Australia Premier Jay Weatherill said the deal would bring competition to the state’s energy market.
“It’s fantastic we were able to secure the electricity to supply our hospitals, schools and electrified rail for the next few years while supporting the growth of a new retail business that will bring some much-needed additional competition into the energy market,” Mr Weatherill said.
Sanjeev Gupta is reportedly in talks with other state leaders about bringing similar deals to both industrial and domestic users.
“I see [this] milestone as signalling the dawn of a new Australian industrial era, led by a revolution in energy prices; bringing down costs, achieving productivity gains and boosting long-term competitiveness for manufacturing and engineering businesses right across the country,” Mr Gupta said.
“SIMEC ZEN Energy [will] redefine the energy landscape of Australia, bringing down costs dramatically and making globally competitive energy a key advantage for Australian industry.”