Renewable Energy Target

Mr HUGHES (Giles) (14:33): My question is to the Minister for Mineral Resources and Energy. Minister, can you explain to the house the operation of the state-based renewable energy target and its commonwealth equivalent?

Mr Wingard interjecting:

The SPEAKER: The member for Mitchell will withdraw for the remainder of question time under the sessional order.

The honourable member for Mitchell having withdrawn from the chamber:

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:33): I thank the member for his timely question and his continued support to seek initiatives to address the global challenge created for all governments by decarbonising to meet the challenges of climate change. There is no denying the threat of climate change—no denying it—and the proof we have is that our own Prime Minister from a conservative party has signed the Paris agreement to try to decarbonise our electricity grid.

Mr Tarzia interjecting:

The Hon. A. KOUTSANTONIS: I note the member for Hartley saying, 'That did a lot.' Well, the Prime Minister signed that Paris agreement on behalf of all of us and he did so with the very best intentions. You may want to attack him—we won't—for signing that Paris agreement. In 2014, this government set South Australia's renewable energy target at 50 per cent of power generation by 2025, subject to the commonwealth government retaining its renewable energy policy.

More than $7 billion has been invested in renewable energy projects in South Australia, with about 41 per cent of that in regional South Australia. That means investment in jobs, economic activity in South Australia, and our renewable energy sector now employs nearly 1,000 full-time equivalent jobs. The only financial incentives to invest in renewable energy in South Australia are the renewable energy certificates issued by the commonwealth to pay renewable power generators to operate—a commonwealth subsidy for renewable energy.

By 2020, these certificates aim to double the amount of large-scale renewable energy generated in South Australia. They want to double the amount of renewable energy in this country, so our state is an attractive destination for potential investors seeking to benefit from these certificates because of our topography, abundant sunshine, abundant wind resources and a pro-investment government.

Seventeen wind farms operate in South Australia, with a total capacity of more than 1,500 megawatts, all subsidised by the commonwealth Liberal-National government, so I understand that members opposite are confused when their masters in Canberra disagree with the very technology they are underwriting each and every day of the week. They underwrite the investment they are attacking, which is possibly why there is a confused state here amongst some potential policy being advocated that would put at risk billions of dollars of investment in South Australia to take advantage of those generous commonwealth government subsidies. What is the rationale for turning your back on renewables?

We learnt the other day that the Prime Minister ignored a private report given to him on advice saying that renewables were not responsible for the statewide blackout. The Clean Energy Council reported that 20 large renewable energy projects are either already under construction or will start this year in Australia. That's more than $5 billion in investment that is expected to deliver approximately 2,250 megawatts of new large-scale renewable energy in 2017—the most investment since the Snowy hydro scheme—and will create nearly 3,000 jobs. However, in our investment posturing as a state before an election, the opposition says to that investment, 'You're not welcome in South Australia. Take your filthy money somewhere else. Take those jobs and take that investment somewhere else.' That's your policy, not ours.