Energy and Emissions Reduction Agreement

Mr MALINAUSKAS (Croydon—Leader of the Opposition) (14:32): My question is to the Premier. What is the total dollar value of the new energy deal announced in a memorandum of understanding by the Premier and the Prime Minister on 18 April 2021?

The Hon. D.C. VAN HOLST PELLEKAAN (Stuart—Minister for Energy and Mining) (14:32): That memorandum of understanding was just over a billion dollars and, from memory, it was around $420 million from the state and about $660 million of federal value, bringing together some existing programs and some new programs. It is a terrific opportunity for South Australia, I have to say.

One of the greatest benefits of that MOU was aligning terrific opportunities from the federal government in their obviously nationwide approach to energy and aligning some of those programs specifically with South Australia so that together we can develop more than either of us could alone.

The Hon. C.L. Wingard interjecting:

The SPEAKER: The Minister for Infrastructure and Transport is called to order.

The Hon. D.C. VAN HOLST PELLEKAAN: Another terrific opportunity was to be able to attract far more than our population share would normally have attracted into our state through this memorandum of understanding. The federal government has some existing programs out there that are available to run across the entire country. Normally, each state and territory would aim for their population share of most of these federal programs. Each state and territory aspires to achieve a lot more than the population share, and certainly in this case we managed to do that.

Our energy policies are clear for all to see. We are very focused on continuing to get further reductions in the cost of electricity, continuing to reduce emissions through the generation of electricity and continuing to improve the reliability of our grid. We are, this calendar year, running on approximately 60 per cent renewable energy, 40 per cent gas. AEMO independently estimates that by 2025 that will have changed to approximately 78 per cent renewable energy in South Australia, so 22 per cent gas.

One of the terrific features of this memorandum of understanding is that, while South Australia continues to use less gas for our electricity generation, and while we progress towards net 100 per cent renewable energy electricity generation in South Australia by 2030, we will continue to produce gas in South Australia. The Cooper Basin and the Otway Basin are very important gas production precincts in South Australia.

As we use less gas in South Australia, that will free up our production of gas to support the Eastern States. While we know the Eastern States, and looking particularly with regard to Victoria and New South Wales, are transitioning away from coal towards gas and towards renewable energy, we are actually ahead of them transitioning away from gas towards renewable energy. The gas that we free up in South Australia, the gas that we produce that creates jobs and contributes enormously to our economy, that freed up gas as we use less of it will go to the Eastern States and support the Eastern States in decarbonising their energy system as well.

So, while they are behind us in that decarbonisation, we can still support ourselves and support those Eastern States—just one example of very constructive dovetailing of federal and state energy policies through this MOU.