PM’s $1bn deal to power up energy delivery
Scott Morrison has done a deal to secure the South Australian energy grid, deliver more reliable supply and unlock gas reserves to drive down prices.
Scott Morrison has done a $1.08bn deal to secure the South Australian energy grid, deliver more reliable supply and unlock gas reserves to drive down prices and help the nation achieve its climate targets.
The deal — in which the federal government will contribute $660m and SA $422m — includes a new gas target for the state to secure an extra 50 petajoules a year by the end of 2023, with the aim of increasing this to 80 petajoules a year by the end of the decade.
The federal government will also put $400m in investment into new technologies, including carbon capture and storage, electric vehicles, hydrogen and other emissions reduction projects in SA to help Australia meet commitments under the Paris Accord.
Up to $100m will be provided in joint support for an energy interconnector between the power grids of SA and NSW while the federal government will also provide up to $110m in concessional finance for solar thermal and other storage projects.
Speaking in Clare, north of Adelaide, with Premier Steven Marshall, the Prime Minister said the measures would reduce prices and create jobs while combating climate change. “This means getting more gas into the market to support the increase in renewable solar and wind power coming into the electricity system.
“One works with the other to deliver lower cost, lower emissions and reliable power,” he said.
“This deal also makes sure that Australia gets ahead and stays ahead in the new energy economy by supporting the next wave of technologies, with a $400m commitment for investing in key areas that have the potential to deliver new industries and opportunities for South Australians.
“This agreement will support investment and more jobs in SA and will be a key driver of our economic recovery from COVID-19.”
Mr Marshall said the agreement backed in the SA to NSW interconnector and would “secure the South Australian grid, increase renewable energy, and bring down bills for consumers in SA by around $100”.
“This agreement also co-ordinates our efforts to deliver a hydrogen export industry in South Australia, deliver carbon capture and storage to reduce emissions, deliver the infrastructure needed for electric cars, and generate new revenue for farmers from carbon reductions,” he said.
“Put simply — this agreement is going to lower power bills for South Australians and create jobs in the fast-growing renewables industry.”
Federal Energy Minister Angus Taylor said the focus on gas would “help South Australia meet its own gas needs and assist efforts to prevent forecast shortfalls in the broader east coast gas market from 2023.”
The deal is also aimed at helping the state achieve its net-100 per cent renewables goal by 2030 and to become an exporter of renewables and gas.
A key focus of the deal is to achieve lower cost gas production in the Cooper Basin and secure a “step-change in gas production” in the Otway Basin.
Both governments will share National Greenhouse Accounts data and work together to improve reliability while driving down power prices and emissions.
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