US developer of concentrating solar power (CSP) plants Solarreserve LLC has signed a long-term 20 year Generation Project Agreement (GPA) to build a 150 MW solar thermal power station with 8 hours of energy storage near the town of Port Augusta, South Australia. According to GTM Research, the price is between AUD 7.5 and 7.8 cents per kWh (about $0.06). Construction of the AUD 650 million facility will begin in 2018 and is estimated to be completed in 2020.

The first of its kind in Australia, the »Aurora« solar energy project will utilize Solarreserve’s solar thermal technology with integrated molten salt energy storage. With a 1,100 MWh of energy storage capability, »Aurora« will be the largest project of its kind in the world, designed to meet the South Australian Government’s annual electricity consumption, says the company.

»Aurora« will deliver power into the National Electricity Market (NEM) at high value electricity periods, providing additional capacity, energy security and reliability services, as well as competition into the South Australian market. According to the company, a solar thermal power station operates like a conventional coal or gas power station, and many of the jobs require the same skill sets as conventional energy jobs – from its construction phase through to operations. Aurora will foster 4,000 direct, indirect and induced jobs during construction, 650 full time construction jobs for a duration of 30 months, 50 full-time, permanent jobs for operations and maintenance. Equipment and services will be purchased across South Australia, which will »support an entirely new industry and develop a supply chain which will be leveraged for other solar thermal projects in South Australia and the broader region.«