Power Infrastructure

Mr VAN HOLST PELLEKAAN (Stuart) (15:05): Supplementary for the Minister for Mineral Resources and Energy: how long does the minister expect the diesel generators to be needed to operate to avoid more blackouts in South Australia?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (15:06): AEMO put out some indicative shortfalls over this coming summer. They are estimating that south-eastern Australia including the Victorian market will be short. We expect to offer our diesel or hybrid generators in lieu of load shedding to meet that shortfall that the market can't supply. I think the fact that the government is having to intervene in this way shows a fundamental market failure.

Even with the price signals that are in place, the market is not responding and the government needs to act. In fact, I think the commonwealth government have admitted it as well by investing in Snowy Hydro. In fact, the only investment in generation that is occurring outside renewables is between the commonwealth government and their Snowy scheme and the South Australian government. Hopefully, by the time the procurement is completed, we will get through this summer and it will be the one summer we need the generators for, but if we need them for longer the government will assess those options then.