Our Energy Plan

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:13): I seek leave to make a further ministerial statement.

Leave granted.

The Hon. A. KOUTSANTONIS: I wish to update house on the state government's energy plan, which has seen a number of important milestones achieved over the past few weeks. The state government's comprehensive energy plan was announced on 14 March and implementation is now well and truly underway, aimed at delivering a cleaner, more reliable and cheaper energy network for South Australians.

On 7 July, we announced that Tesla, in conjunction with Neoen, would build the world's largest lithium ion battery here in South Australia. Preparatory works at the battery construction site near Jamestown in the state's Mid North have begun, and a significant number of local jobs will be generated during this phase. The 100-megawatt battery will provide stability and security services for the electricity network and will also be available to provide emergency backup power for short periods if a shortfall is predicted.

The deal, which puts our state at the forefront of global energy storage technology, could also trigger other investments by Neoen and Tesla into South Australia's wider economy, with details to be announced in the future.

With respect to the temporary generation for this summer, I am pleased to inform the house that, instead of procuring temporary generators, the government has agreed to purchase nine new General Electric TM 2500 aeroderivative turbines, providing up to 276 megawatts of generation to the grid when required. This long-term backup energy power plant will be temporarily installed ahead of summer at Holden's Elizabeth site and at the desalination plant in the south.

Our new power station will initially be operating on diesel at the temporary locations and will emit 25 per cent less carbon dioxide per megawatt hour than the former Northern power station. Once in its permanent position, it will be connected to gas and be more efficient than the Torrens Island power station. The total cost for this consolidated option will be met within the allocated budget and within the overall $550 million energy plan budget.

We are also in the advanced stages of leveraging our purchasing power through our own electricity supply contracts to encourage a new generator into the market and increase competition. We will have another announcement on that very soon.

Mr van Holst Pellekaan: That was going to be February.

The Hon. A. KOUTSANTONIS: Like your own energy policy. Our Energy Productivity Audit Grant Program, designed to help small to medium businesses in South Australia, has also had an encouraging uptake. As of 31 March 2017, we have received 557 applications, with almost 500 of those now approved. As of today, nearly 50 applications have been received for the Energy Productivity Implementation Grant Program so that businesses can start implementing their energy efficiency measures and cut their power bills.

Our efforts to get more gas out of the ground continue to gain momentum. I can reveal today that we have had 15 applications from 11 different companies for round 2 of our $24 million PACE grant scheme. The grants will generate up to $174 million in new investment by oil and gas companies in local production projects. Determinations will be made in October of this year. I know that members are looking forward to those dates and those announcements, and I will continue to update the house and the parliament on the state government's plan to create a cleaner, more reliable and more affordable energy network as it progresses.