The South Australian Government will privatise operation of two emergency back-up power stations built by its Labor predecessor, declaring the turbines will deliver little benefit for a cost of more than $600 million over their 25-year life.

Key points: A report into two emergency power stations in SA is damning of a decision to buy them outright

A report into two emergency power stations in SA is damning of a decision to buy them outright The generators were purchased under Labor to prevent summer load-shedding

The generators were purchased under Labor to prevent summer load-shedding The new Government has announced it will privatise the running of the generators

Attorney-General Vickie Chapman has tabled a report in Parliament by lawyer Mark Livesey, QC, who was commissioned by the new Government to investigate the power station deal.

After the state endured load-shedding blackouts in early 2017, the former government announced it would lease nine aero-derivative turbines from APR Energy to use to secure the state's power supply.

Prior to summer, the turbines were temporarily installed at Lonsdale in Adelaide's south and the former Holden factory in the city's north prior to run on diesel fuel.

But they were not called upon to prevent blackouts.

The deal for the turbines included an option to purchase them outright at the end of an initial two-year lease period.

But in November, then Premier Jay Weatherill opted to exercise the purchase option early, announcing the two temporary power stations would eventually be reconfigured on a permanent site and switched to gas to provide a permanent taxpayer-owned backup power station.

Mr Livesey's report found little justification for that decision.

"It is not easy to determine how the logistics associated with planning for the relocation of the turbines would have suffered if delayed until after the state election," the report said.

"The evidence in favour of the case for a permanent, emergency electrical generation facility is sparse indeed.

"None of the procurement materials or expert reports made available to me cite expert advice on the need for a permanent plant."

Despite their high price, the turbines were not needed over summer. ( Supplied: SA Government )

Mr Livesey said his investigation was unable to access key cabinet submissions, because permission was not granted by Opposition Leader Peter Malinauskas.

"Apart from one spreadsheet supplied to me in connection with my investigation, I have seen no comprehensive or contemporaneous independent financial analysis of the long-term implications of exercising the option when it was announced in August 2017, or when it was exercised in November 2017," he said.

"Naturally, that analysis may be contained in documents that I have not seen."

Energy Minister Dan van Holst Pellekaan said the Livesey report showed the previous government had slugged taxpayers for generators that would likely lie dormant.

"It is a sobering read, and a damning indictment on the previous Labor Government's decision-making, highlighting serious concerns with their procurement process," Mr van Holst Pellekaan said.

"It exposes how, seemingly without any expert advice, Labor rushed into owning permanent generators at huge expense without any evidence of them being needed in the long term."

Mr Malinauskas said the power plant was providing certainty to South Australian households.

"This is the most significant privatisation of South Australian energy assets since the Liberal Party privatised ETSA," he said.

"The Liberals are simply addicted to privatisation.

"Privatising ETSA was a disaster for South Australian households. The Liberals haven't learned a thing."

Turbines privatised, but not sold

The Government has stopped short of an option presented in the Livesey Report of selling the generators, instead opting for a tender process for a company to operate the nine generators for a 25-year period.

Mr van Holst Pellekaan said the Government has determined that some emergency generation may be required in the SA market until Autumn 2020.

"The most recent forecasts by the Australian Energy Market Operator (AEMO) in its Energy Statement of Opportunities confirms that there is a declining need for the temporary generators over the coming summers," he said.

The Energy Minister said under the tender arrangement, the private operator of the turbines would be able to sell electricity into the market, rather than operating them solely in emergencies.

"Some of our older generators will be retiring from the market over coming years," he said.

"These older and less flexible generators are struggling in a market dominated by renewable energy.

"This course of action is appropriate in that context.

"By retaining strict controls whilst allowing the units to enter the market, instead of lying idle for decades at enormous expense, these generators can help deliver what all South Australians are seeking — more affordable and reliable power."

The tender process is due to start next month, with completion of negotiations expected by next April.