Solar thermal not viable: Alinta Energy

Alinta Energy says a solar thermal power generation plant in South Australia is commercially unviable.

The company has abandoned a feasibility study into replacing its coal-fired powered stations in Port Augusta with a solar thermal plant.

It says the project would only be feasible under improved energy market conditions and with more advanced solar thermal technology.

"Following further investigation into a range of alternate plant configurations and costing assumptions, Alinta Energy can conclude that constructing a 50 megawatt molten salt power tower located in Port Augusta is not commercially feasible at this time," chief executive Jeff Dimery said in a statement.

Alinta plans to close down its two Port Augusta power stations and the Leigh Creek coal mine in SA's north as early as March next year with the loss of about 400 jobs.

The Australian Youth Climate Coalition says it is disappointed Alinta has walked away from the idea of a solar thermal plant and has urged the state government to step in to make it happen.

"If the state government implemented a policy to buy power from a solar thermal plant, it would attract interest from companies who are serious," coalition spokesman Dan Spencer said.

"It's critical that the state government gets in the game to make this happen to spur new jobs."