The South Australian State Budget fully funds the State Government’s $550 million energy plan.
Implementation of the plan, titled South Australian power for South Australians, is progressing, with a number of measures reaching key milestone in recent weeks.
Importantly, the new grid-scale battery and temporary generation outlined in the plan are on track to be in place by summer 2017, which Australian Energy Market Operator (AEMO) indicated in a recent report will dramatically improve system security in South Australia.
Treasurer, Tom Koutsantonis, said, “This is a significant investment we had to make in the interest of South Australian households and businesses.
“Every expert and industry group in the country – including the Chief Scientist – has told the Federal Government what is required to fix the broken National Electricity Market, but Malcolm Turnbull has refused to listen.
“In February, the national operator ordered power be cut off to South Australian customers when they could have turned available generators on.
“We couldn’t wait any longer – this energy plan is about taking back control of our energy future. The plan is already working. In recent months, global companies have turned their attention to South Australia as they seek to construct our new generator and grid-scale battery.
“We’ve also seen AGL announce it will build a new generator at Torrens Island, and AEMO, in its latest report under new CEO Audrey Zibelman, has shown our energy plan will greatly improve the security of electricity supply in South Australia.”
Highlights from the Energy Plan that will be funded by the Budget include:
Australia’s largest battery
In total 90 Expressions of Interest were received from Australia and around the world. Submissions have been evaluated and shortlisted. The final stages of the procurement process are underway and we are on track to have the battery operating by 1 December 2017.
Local powers over the national market
The new powers are now in effect, meaning the Minister for Energy can take action during electricity supply emergencies to protect South Australia’s energy security.
State-owned gas power plant
In total 31 Expressions of Interest were received and the submissions have been shortlisted. More detailed responses from shortlisted proponents are now being evaluated.
New generation for more competition
The submissions received through the tender process have been shortlisted, and detailed offers from shortlisted proponents are now being evaluated.
South Australian gas incentives
Five applicants benefited from the first round of the program and are expected to generate $174 million in new investment in South Australia. Applications for the second $24 million round close in August 2017.
Energy Security Target
Consultation on the Draft Energy Security Target (EST) regulations closed on 26 May 2017. The EST will come into operation on 1 January 2018. This reflects feedback in the submission process, provides more preparation time for the introduction of the EST and will enable us to consider any changes in the national market as a result the release of the Finkel Review.