South Australian Minister for Energy Pat Conlon turned the first sod on the $80 million project, located 25km north of the CBD on Torrens Island, at a ceremony yesterday morning.

Andrew Stock, Origin’s executive general manager major development projects, said the expansion would more than double output of the existing 95MW installation.

“The project would create about 40 to 50 jobs during construction and would further improve Origin’s position as an integrated retailer and generator of electricity,” he said.

“Many factors, including the addition of significant wind farms in South Australia and an increasing air conditioner load in the state has created the need for more peaking generation capacity.”

Minister Conlon said the expansion would power a further 75,000 South Australian homes.

“This is a major investment in the South Australian market and will further increase

our energy capacity,” he said.

In May, Origin awarded the equipment supply contract to GE Energy for the supply of a 120MW Frame 9E gas turbine generator set.

Two months later, the construction contract was awarded to Leighton Contractors.

The expansion is due for completion in the December 2008 quarter, in time to provide additional peak electricity capacity for summer.

“The power station will take advantage of open cycle gas turbine technology to provide clean burning peaking power and will help maintain the state’s comparatively low greenhouse gas emissions intensity,” Stock said.

The expanded facility will be supplied with natural gas through the SEA Gas Pipeline connecting Adelaide with the southeast Australian gas network, and will be sourced from Origin’s gas supply portfolio.