SA energy company falls into administration
A South Australian company that signed a $1.5 billion energy deal with the state government in 2020 has appointed administrators today, InDaily can reveal.
South Australian renewable energy company Zen Energy has sold its infrastructure assets and appointed administrators, with employees being informed around midday today.
The company was a major supplier of renewable energy across the state, with solar farms in Tailem Bend and Renmark and the Waterloo wind farm in the Mid North.
In 2020, Zen Energy renewed its contract with the South Australian government to supply electricity to the state until 2035.
The state government has now transitioned to AGL to supply electricity to SA government facilities and essential services.
The Across Government Electricity Retail Agreement with Zen Energy to supply 100 per cent renewable electricity to SA Government operations was worth an estimated $1.53 billion.
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A state government spokesperson said the government was “aware that Zen Energy has ceased its retail of electricity and entered voluntary administration”.
“Electricity supply to SA government facilities and essential services provided under the Across Government Energy Retail Agreement has not been interrupted,” the spokesperson said.
“Electricity supply to public authorities previously buying electricity from ZEN Energy, has now transitioned to AGL as South Australia’s default electricity retailer (supplier) of last resort (RoLR), under established regulatory arrangements.
“The SA Government has commenced a procurement process to seek a new across-government electricity supplier to ensure best value for taxpayers.”
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McGrathNicol Restructuring partners Rob Smith and Jason Preston were appointed as joint administrators of Zen Energy and its related entities today.
The administrators will undertake an assessment of Zen’s business, and work closely with employees, regulators, customers and other stakeholders.
“We are urgently engaging with key stakeholders to determine the most appropriate strategy for the business which will deliver the best possible outcome for all stakeholders,” Smith said
The company had experienced successive years without making a profit, with financial losses of $51.9 million in the 2023-2024 financial year and a $133.6 million loss in the 2025 financial year.
Zen Energy had also recently appointed new chair Mark Butcher in May, following the resignation of co-founder Ross Garnaut from the role in February.
Under its energy agreement with the state government, Zen Energy committed to the construction, commissioning and operation of two new electricity generation and storage projects, including a 280MW solar farm at Cultana near Whyalla by 2022 and a 100MW utility battery at Playford near Port Augusta by 2023.
Due to third-party financing issues, Zen Energy was unable to complete its contracted commitments.
The company has several major renewable energy projects across Victoria, New South Wales, WA and Queensland, including battery storage facilities and pumped hydro storage.
The Zen Energy board announced that the sale of Zen’s infrastructure asset business, comprising a growing portfolio of renewable generation and storage assets, was also completed.
According to Zen Energy, the retail business was impacted by continued wholesale electricity volatility that undermined the viability of a going concern sale despite significant support from a range of stakeholders, including the state government and SA Power Networks.
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