Energy Productivity Program

The Hon. J.M. RANKINE (Wright) (14:52): My question is to the Minister for Mineral Resources and Energy. Minister, can you update the house on the state government's Energy Productivity Program and the uptake from local businesses since the scheme was introduced as well as a status report on the energy plan?

An honourable member interjecting:

The SPEAKER: Yes, the minister has the call now.

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:52): Oil on troubled waters, sir. On 13 December 2016, we announced the Energy Productivity Program, which provides $31 million over two years to help large South Australian businesses manage their electricity costs. Businesses eligible for a share in this funding are those who consume over 160 megawatt hours of energy every year.

The program consists of two parts: the audit grant program, which provides $7.5 million to cover 75 per cent of the cost of energy audits for up to 500 businesses; then there's stage 2, which is the implementation grant program, which provides funding to implement energy audit recommendations that has two streams targeting differently sized projects. I can advise that we have already received 394 applications for the energy productivity audit grant program so far. Of these, 261 applications have been approved and 19 applications for the implementation grant program have been received.

Applications for the audit grant program close on 31 May 2017. Stream 1 of the implementation grant program will provide $15 million to implement at least six major energy-saving opportunities, with grants of up to $2.5 million on a one-to-two funding basis, with the government contributing one dollar for every two dollars that the business contributes. Stream 2 of the implementation grant program will provide $8.5 million to implement audit recommendations to help at least 110 businesses with $75,000 grants on a one-to-one funding basis. Applications for both of these close on 31 March 2018.

I would also like to provide the house with an update on the government's energy plan, which continues to gain momentum. With respect to us building Australia's largest battery, I can announce that we have now short-listed potential candidates. Technical specifications and draft contract terms have also been finalised. In relation to the 250 megawatt gas-fired power plant, we have also finalised technical specifications, draft contract terms and supporting documentation for the invitation to supply, which were released to short-listed applicants this week. The state government supply contracts announced last year are being developed with the contract terms currently being advised.

With respect to the increased ministerial powers of direction, the Emergency Management (Electricity Supply Emergencies) Amendment Act 2017 was gazetted on 26 April 2017, and I thank the opposition for their support. We have also begun to prepare draft guidelines for the government's renewable technology fund. In addition, we have held discussions with the Australian Renewable Energy Agency and the Clean Energy Finance Corporation to discuss their recently announced investment priorities. The consultation period for feedback on draft regulations for the state government's energy security target opened last week and stakeholders are encouraged to provide their views by 26 May.

With regard to the government procuring temporary generation for the upcoming summer, whilst construction on other aspects of the plan progress, I can reveal that SA Power Networks has short-listed potential suppliers of this service. We are working closely with SAPN and receiving updates on a regular basis. We have also spoken with the EPA to discuss licensing and additional requirements around the installation of generation.

I look forward to continuing to update the parliament on the state government's energy plan to make us less reliant on interstate imports and more self-reliant in South Australia on our own generation using gas, sun, wind and all our resources that are available.