Federal Budget 2017: Port Augusta solar thermal plant gets major investment boost
A SOLAR thermal energy plant at Port Augusta was given a huge boost in the Federal Budget with a commitment of up to $110 million, while another announcement has big implications for Moomba.
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A SOLAR thermal energy plant at Port Augusta was given a huge boost in the Federal Budget with the government committing up to $110 million to the project, while Moomba has moved a step closer to becoming the centre of a national gas distribution hub.
The state’s gas producers could also benefit from policies designed to ease the nation’s gas crisis, with new exploration incentives and measures announced which appear to be directed at helping Santos unlock stranded gas assets in NSW.
The government has also set aside about $37 million over two years “to target investment in energy infrastructure in SA under a bilateral asset recycling agreement’’.
Lobby groups such as Repower Port Augusta are likely to be pleased with the government’s announcement that it would underpin the development of a solar thermal plant — which would go some way to easing the pain from job losses at the town’s now shuttered coal-fired power stations, formerly owned by Alinta Energy.
The investment would also help address SA’s energy crisis, with solar thermal plants able to store solar energy for later use.
“The government will make available up to $110 million for an equity investment, if required, to accelerate and secure delivery of a solar thermal project in Port Augusta, SA. This investment is designed to diversify energy generation and storage technologies and create new employment opportunities,’’ Budget documents state.
The government, as previously announced, is supporting a major expansion of the Snowy hydro scheme via a feasibility study looking at the best locations for an expansion.
It is also “looking at further hydro-electricity and pumped storage opportunities in Tasmania, SA and Queensland’’.
The southern Flinders Ranges has previously been touted as a possible site for the application of pumped hydro.
The Moomba project, a possible multibillion-dollar gas pipeline network connecting WA and the NT to the Moomba gas plant in SA’s Far North, has previously been flagged by the government.
A $5.2 million “national interest and cost-benefit analysis” would now be done to see if it is viable.
Meanwhile, the Budget copies a key plank of the SA Government’s plan to incentivise gas development.
The State Government has committed $48 million so far to assisting drilling for gas in the state, and the Federal Government now says it will do the same nationally, pouring $28.68 million into a new East Coast gas development program.
Federal Resources Minister Matt Canavan said the program would “target faster development of onshore gas fields to meet Australian demand, while also focusing on a fair return to landholders”.
While the government said the funding would be subject to the removal of regulatory restrictions, such as a current total ban on onshore exploration in Victoria and the NT, there could be benefits for companies exploring in SA if these are not able to be rectified.
Santos’s currently shelved Narrabri project could also benefit from a plan to examine the impact of coal seam gas and large coal mining development on water resources.
Other measures designed to reduce the cost of gas include $19.6 million over four years for the Gas Market Reform Group to better facilitate gas trading and more funding for the Australian Energy Market Operator and the ACCC to oversee the gas market and electricity retailers.