Question Time

Renewable Energy Target

Mr MARSHALL (Dunstan—Leader of the Opposition) (14:03): My question is to the Premier. Is the Premier prepared to abandon his stated-based renewable energy target in favour of a more effective single, cohesive national renewable energy target, given evidence produced by the Grattan Institute and others which suggests that state-based renewable energy targets are driving up electricity prices and impacting security of supply?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:03): The South Australian renewable energy target has no mechanism behind it, which is what the opposition failed to mention in their question, and the Grattan Institute is talking about state-based renewable energy targets that have mechanisms alongside them like the proposed Victorian and Queensland renewable energy targets. What the state Labor government is calling for is a national energy intensity scheme as contemplated in direct action which was the policy the Abbott government introduced. It has a mechanism in place left by regulation.

The former environment minister, the Hon. Greg Hunt, had contemplated a baseline and credit scheme. We believe a baseline and credit scheme or an energy intensity scheme is the appropriate way to go. Our renewable energy target has no mechanism behind it and we are advocating for a—

Ms Chapman interjecting:

The SPEAKER: The deputy leader is called to order.

The Hon. A. KOUTSANTONIS: We are advocating for a national scheme. We have advocated it at the COAG. The Premier has made speeches about it. We have talked about it—

Mr Marshall interjecting:

The Hon. A. KOUTSANTONIS: The Grattan Institute argues against a national renewable energy target, as I understand it, with a mechanism—

Mr Marshall interjecting:

The SPEAKER: The Treasurer, uncharacteristically, is not being in the slightest provocative, yet the leader is interjecting.

Mr Marshall interjecting:

The SPEAKER: No, you're not, and you are called to order.

The Hon. A. KOUTSANTONIS: The renewable energy targets that are being highly criticised by some in the industry are the ones that have mechanisms alongside them. Our renewable energy target has no such mechanism. There are no state-based incentives for generation of renewable energy, which is what is being contemplated by the ACT—by the ACT Liberals as well, at the last election recently, where they were unsuccessful—and of course in Queensland and Victoria. This is what the debate is about, and this is what the Prime Minister is talking about. He doesn't want to see—

Mr van Holst Pellekaan interjecting:

The SPEAKER: The member for Stuart is called to order.

The Hon. A. KOUTSANTONIS: —state-based renewable energy targets with mechanisms. What we are arguing for is a national energy policy that takes into account climate. What we are arguing is that we need to deal with global warming. What we are arguing for is that the Prime Minister has brought together two portfolio areas, energy and climate. He has also signed the Paris agreement, which commits this country to making some very serious targets and decarbonising our electricity production. Our state-based renewable energy target has no mechanism. The only incentivising scheme behind our renewable energy target is commonwealth subsidies. That is the only one.

Mr van Holst Pellekaan interjecting:

The SPEAKER: The member for Stuart is warned.

The Hon. A. KOUTSANTONIS: Again, if the opposition is saying we should use a development act to stop developments, it is an absurd proposition to put to the people of the state. We want a national scheme. Right now, there is a vacuum, and the reason states like Victoria and Queensland are talking about state-based renewable energy targets with mechanisms in place is because there is an absence of leadership at the federal level. Why? Because, quite rightly, like most political parties, they are having a debate internally about it. There is no secret to this. The Prime Minister in 2009—

Ms Chapman interjecting:

The SPEAKER: The deputy leader is warned.

The Hon. A. KOUTSANTONIS: —advocated for an energy intensity scheme much like we have advocated for now, but of course he lost his leadership on that basis. Former prime minister Abbott was successful in a leadership challenge by one vote, defeating him on those renewable policies. So, there is now a 2017 review in place by the commonwealth where they are going to contemplate all of this. Importantly, commonwealth energy minister Josh Frydenberg did not rule out, when directly asked, whether he would support an energy intensity scheme. The work that Dr Finkel was conducting will be very important in leading this work towards a way in which we can decarbonise our electricity market.