A South Australian renewable energy company with contractual ties to the state government has entered voluntary administration.<\/p>\n
ZEN Energy was once an emerging player in the renewables transition, and has been involved with multiple solar farms and battery-powered storage projects, including in the Riverland and at Tailem Bend.<\/p>\n
In 2020, the company announced it had signed a decade-long contract to power state government sites.<\/p>\n
But in a statement today ZEN said while it had “been pursuing a restructuring and recapitalisation exercise” in recent months, the company’s viability had been impacted by “wholesale electricity volatility”.<\/p>\n
“The Board has placed the residual ZEN Group in voluntary administration,” ZEN said in a statement.<\/p>\n
“The retail business has continued to be impacted by continued wholesale electricity volatility, that has undermined the viability of a going concern sale, despite significant support from a range of stakeholders, including the SA Government, SA Power Networks and various regulators.”<\/p>\n
McGrathNicol has confirmed its appointment as administrator and said it was urgently assessing ZEN’s business.<\/p>\n
It said it would work closely with employees and customers.<\/p>\n
“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,” McGrathNicol partner Rob Smith said.<\/p>\n
Under the company’s agreement with the state government, ZEN had committed to “facilitate the construction, commissioning and operation” of a solar farm near Whyalla and a battery near Port Augusta, Attorney-General Kyam Maher told parliament in 2023.<\/p>\n
The government today said while it was aware that the company had “ceased its retail of electricity and entered voluntary administration”, electricity supply to its facilities and essential services under its agreement had “not been interrupted”.<\/p>\n
“Electricity supply to public authorities previously buying electricity from ZEN Energy, has now transitioned to AGL as South Australia’s default electricity retailer \u2026 under established regulatory arrangements,” a government spokesperson said.<\/p>\n
“The SA government has commenced a procurement process to seek a new across government electricity supplier to ensure best value for taxpayers.”<\/p>\n
In 2025, it was revealed a renewable energy precinct planned for outback Queensland would not go ahead after ZEN walked away from the initiative<\/a>.<\/p>\n