State Govt owed money as creditors pull plug on SA energy company
An SA company founded by high-profile economist Ross Garnaut has been sent into liquidation as creditors try to claw back more than $1 billion owed.
Creditors of ZEN Energy decided at a meeting last Friday to send the well-known South Australian renewable energy business, co-founded by well-known economist and media identity Ross Garnaut, into liquidation.
Filings with the Australian Securities and Investments Commission show creditors resolved to wind up ZEN Energy and 11 associated companies on August 7.
It was unclear how this would impact state government coffers but a spokesperson confirmed to InDaily today that there would be a claim and “the state government is currently assessing across agencies the extent to which it is owed money by ZEN Energy”.
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 until 2035.
InDaily exclusively revealed that on the company’s collapse in early July, the state government transitioned to AGL to supply electricity to SA government facilities and essential services.
You might like
A recent administrators’ report showed the Adelaide company owed $1.1 billion to creditors as of June 30, 2026. But in the best-case scenario, administrators hope to be able to claw back only $45 million from the business’ assets, leaving a massive shortfall for all creditors.
SA Power Networks, which manages the state’s electricity infrastructure, took ZEN Energy to the Federal Court earlier this year over outstanding monies owed.
The company – owned by Cheung Kong Infrastructure Holdings Limited and Spark Infrastructure – claimed it was owed $15 million.
This spat was initially resolved through ZEN negotiating a payment plan with SAPN, which saw ZEN paying $2 million per week from the week ending May 29, 2026.
Stay informed, daily
SAPN withdrew its Federal Court claim after ZEN appointed administrators.
InDaily exclusively revealed that ZEN Energy appointed administrators on July 3, leading to 60 job losses. As priority creditors, administrators McGrathNicol previously estimated they would have their $8 million in entitlements paid in full if the business was liquidated.
ZEN Energy recently appointed new chair Mark Butcher in May, following the resignation of co-founder and green economist Ross Garnaut from the role in February.
Administrators recommended creditors vote in favour of winding the company up, as no buyer could be found for ZEN Energy through a sales process earlier in the year.
Having assessed the business and options available, the administrators said the estimated return to creditors would be a “nil return” in the “low scenario”.
While in the “high scenario, a return of up to 10 cents in the dollars is potentially available to secured creditors”, the report reads.
ZEN Energy was a major supplier of renewable energy across SA, with solar farms in Tailem Bend and Renmark.
The company had been loss-making for some time. Losses grew from $69 million in 2024 to $163 million in 2025. As of June 30, 2026, losses had skyrocketed to $322 million, the latest report reveals.
Preliminary McGrathNicol investigations found that the company became insolvent from at least February 27, 2026 – just over four months before administrators were appointed.
Administrators said company directors attributed the collapse to ZEN’s business model being exposed to “significant market risk through long-term and substantial positions in the energy market, with market conditions moving against these positions from FY24 to FY26”.
Want to see more stories from InDaily SA in your Google search results?
- Click here to set InDaily SA as a preferred source.
- Tick the box next to "InDaily SA". That's it.
