ElectraNet’s annual energy planning report forecasts record electricity demand for South Australia

Serious concerns have been raised over SA’s baseload power capacity as the state braces for “unimaginable” increases in electricity demand over the next decade.

ElectraNet chief executive officer Simon Emms has praised the state’s renewables focused energy grid but the company’s annual planning report warns more baseload generation is needed. Picture: Supplied by ElectraNet

Electricity demand is forecast to hit levels “unimaginable only a few years ago” in South Australia because of unprecedented proposed expansions in mining, desalination, data centres and green steel, triggering a warning much more baseload supply is needed.

Declaring SA’s energy transition is accelerating, high-voltage transmission operator ElectraNet warns more “firming capacity” is needed to meet demand peaks, ensuring there is “no supply shortfall” during periods of insufficient renewable generation.

ElectraNet’s latest Transmission Annual Planning Report, to be released on Tuesday, says large industrial loads are driving record levels of connection inquiries of more than 2500MW – SA’s total network capacity now is 9125MW and a forecast of an extra 1300MW will be needed by 2035.

The report shows this unprecedented connection interest – for both supply and demand – is from industries including mining, green steel, desalination, renewable energy projects and data centres.

But it warns underinvestment in high-voltage networks risks “putting a handbrake on the energy transition and the new economic activity it is creating”.

SA’s world-leading renewable energy embrace is bringing “significant and varying challenges to the network”, the report says, particularly variable energy flows from solar and wind.

“This needs to be managed appropriately to maintain a secure and reliable supply,” it says.

The ElectraNet report shows an unprecedented interest – for both the supply and demand of electricity in SA – coming from industries including mining, green steel, desalination, renewable projects and data centres. Picture: Ben Clark

ElectraNet chief executive officer Simon Emms said: “Industries are choosing to invest here because of the strength of our renewables and grid. Projects are scaling up faster. Expectations are higher. And our transmission network must rise to meet this moment.”

But the ElectraNet report criticises outdated Australian Energy Market Operator forecast methods for electricity demand, that inform which high-voltage transmission lines are built.

BHP and the state government are spearheading a major study into the Northern Water project, which involves a 260 megalitre-per-day desalination plant on Eyre Peninsula and a 600km pipeline to transport the water to the Far North.

This could start supplying water by 2028 to spur a potential tripling of BHP’s Olympic Dam copper smelter for a multibillion-dollar expansion.

Mr Malinauskas in May said “the global capital racing around at the moment looking to invest in data centres is eye-watering”, insisting there was “a lot of work happening within my government on data centres” that was yet to be revealed.

Originally published as ElectraNet’s annual energy planning report forecasts record electricity demand for South Australia