State Energy Plan

Mr HUGHES (Giles) (14:50): My question is to the Minister for Mineral Resources and Energy. Can the minister outline the industry response to the $150 million renewable technology fund and the largest battery built in Australia recently announced as part of the government's comprehensive energy plan?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:50): I thank the member for the question, recognising the relevance and need for renewable energy technologies in an ever-emerging industry. Since announcing our energy plan earlier this month, we have received an encouraging response from renewable and emerging energy technology firms locally, nationally and internationally.

In fact, many organisations have publicly declared their support for the government's energy plan, including the South Australian Chamber of Mines and Energy, BHP, the Australian Conservation Foundation, Lyon Solar Group, the Australian Petroleum Production and Exploration Association and the Deputy Leader of the Opposition. I want to thank all those organisations and individuals for their support.

Our renewable technology fund and the large-scale battery components of the plan have garnered what I think are unprecedented amounts of interest and shown a willingness and preparedness of companies to make significant commitments and investments into South Australia. As I said, the potential for investment and job opportunities generated by the government's energy plan have attracted a variety of companies which boost an impressive number of innovative technologies and capabilities.

One of the companies we visited over the past few days was Australia's only solar panel manufacturer, an Adelaide-based company, Tindo Solar. Last week, the Premier and I had the pleasure of touring this local business, which is globally competitive and prides itself on the quality of their world-class products. I also note it was recently purchased by another South Australian firm, and of course they have taken full advantage of the government's tax reforms and stamp duty concessions that are in place.

They pay nothing for the IP in terms of stamp duty, nothing in terms of plant and equipment and, of course, they are paying less for their stamp duty. They employ around 25 people, with plans to expand staff numbers and facilities at Mawson Lakes as they move to increase production to 24 hours a day. They are very supportive of the government's renewable technology fund and have also expressed an interest in partnering with a New Zealand company to bid for a grid-scale battery.

The procurement process for securing a large battery of up to 100 megawatts in South Australia is already well underway. Applications are closing this Friday. The expression of interest form has been downloaded more than 200 times by a plethora of countries, and we expect that to translate into a strong reply rate by the end of the week. Prospective providers will need to ensure that the project is made available to government in certain circumstances or would otherwise be available to participate in energy training and ancillary services in the National Electricity Market. To facilitate this, the South Australian government will provide a guaranteed minimum return to the project, with liability offsets by other market revenues.

The government recognises and understands the need for large-scale storage solutions in an ever-emerging industry as well as the need for immediate dispatchablity when required. Storage is the key to the puzzle in unlocking renewable energy and making it scheduled and dispatchable. It is very important that we do all we can to incentivise this type of energy because storage is going to be the answer, whether it is hydrogen, whether it's battery, whether it's pumped hydro.

Utilising those low-cost energy forms to try to make sure that we can store an abundant amount of renewable energy that we have in this state will make South Australia a powerhouse and return us to the vision that Mr Playford had when we had cheaper power to try to grow our economy rather than, of course, selling the assets to the private sector.