Renewable Energy

Mr HUGHES (Giles) (15:35): I rise to express my concerns that the renewable energy industry in our state is facing an uncertain future. Australia has made enormous strides in the renewable energy sector. According to a recent report by PricewaterhouseCoopers, Australia has become the world's unexpected champion in cutting emissions for a second year running. Australia managed a 7.2 per cent cut in the amount of carbon dioxide emissions per dollar of economic activity in 2013. This is compared with a global cut of 1.2 per cent according to the PricewaterhouseCoopers low carbon economy index.

Here in South Australia we have led the charge nationally in our expansion of the production of renewable energy. We have seen our renewable energy sector flourish to the benefit of our environment and our economy. The state government has set itself a target of achieving 33 per cent renewable electricity by 2020, and it is possible that we will reach this target in the coming year.

It is worth noting that the installed capacity of renewable energy has grown from 0.8 per cent in 2002 to 31.7 per cent, a great achievement by South Australia. The economic benefits have been enormous right across the state, but particularly in regional South Australia. Within my electorate of Giles and the areas bordering my electorate, there are a great many innovative initiatives that are creating jobs for local communities, creating a cleaner healthier environment and contributing to making South Australia a world leader in green industries.

One example is Sundrop Farms located at the top of Spencer Gulf, well north of Goyder's line. This is the world's first commercial Sundrop Farm. The farm has developed technology to grow high-quality produce using the sun's energy to desalinate sea water to produce fresh water for irrigation. In October 2011, Sundrop Farms was awarded $345,000 from the South Australian government to demonstrate the use of solar energy in horticulture. The project employs unique hybridisation, allowing the use of heat captured by solar thermal technology for three interlinked purposes.

In the first, the highest temperatures are used for power generation to meet the electricity needs of the greenhouse. The waste heat from the power generation is used to drive a thermal desalination process to provide water, and the remaining heat is used to warm the greenhouse. Sundrop Farms is an example of sustainable future horticulture. This is an industry that has potential not only to create jobs but also to grow food in areas where it is needed.

Much of the success of Sundrop Farms in South Australia can be traced back to government policies that encourage and incentify such enterprises. For example, the Clean Energy Finance Corporation (a corporation, I should point out, that the federal government wants to eliminate) is now cofinancing Sundrop Farms' 20-hectare expansion project, which will use solar thermal technology to desalinate sea water to provide irrigation and to heat and cool the greenhouses. Sundrop Farms has development approval to expand this greenhouse to a 20-hectare site and is receiving case management support through the Department of State Development.

I could go on at length about the importance of the wind energy industry in South Australia, the jobs created in regional South Australia and the manufacturing opportunities that are being developed in communities such as mine in Whyalla.

All of this is at risk because of the attack at a federal level on the renewable energy target and the disgraceful manner in which the federal government has deliberately created uncertainty when it comes to investment in renewable energy industries. This will cost South Australia very dearly, both in terms of investment dollars (in the billions), in terms of jobs and in doing the right thing by the environment. The opposition needs to work—

Time expired.

The Hon. T.R. KENYON: Deputy Speaker, I draw your attention to the state of the house.

A quorum having been formed: