House of Assembly Fifty-Fifth Parliament Parliament, First Session (55-1) 55 1 Parliament of South Australia House of Assembly published Question Time Electricity Generation Electricity Generation Ms HUTCHESSON House of Assembly Waite Electricity Generation Ms HUTCHESSON (Waite) (14:23): My question is to the Minister for Energy and Mining. What is the benefit of state-owned backup generation, and are there any alternative views? The Hon. A. KOUTSANTONIS House of Assembly West Torrens Minister for Infrastructure and Transport Minister for Energy and Mining Electricity Generation The Hon. A. KOUTSANTONIS (West Torrens—Minister for Infrastructure and Transport, Minister for Energy and Mining) (14:23): I thank the member for her question. I can inform the house that, yes, there are many benefits to backup generation. The national energy market is failing. South Australian constituents are afraid of rolling blackouts that are going to occur and they fear they may be left in darkness. The current fear that they have is entirely avoidable. You could argue that the current challenges are unprecedented, but we have seen a stressed network before. Indeed, on 24 January 2019, an operating incident occurred in the NEM. Demand for electricity in Victoria and South Australia was higher due to record temperatures in both regions and thermal generation capacity was heavily restricted in both regions. This caused load shedding in Victoria, but South Australia was protected. How, you might ask? How was South Australia protected? On 24 January 2019, South Australia still had sovereign generation capability. We had the control of 250 megawatts of generation—South Australian horsepower that could turn on and protect South Australians from blackouts, put in place by the previous Labor government. On that day, those generators ran at full capacity and ensured that South Australia was spared from rolling blackouts. The Victorian government could not do the same for their constituents. Despite the generators showing their worth, members opposite thought it would be a good idea to sell them and not only did they sell them but they leased them for 25 years. Times of stress are not unprecedented. Our plan was to ensure the security of South Australia's energy during such times. The Liberals' plan was to make a quick buck. How did it go? I can tell you that the turnkey cost of those generators was $226.7 million—brand-new generators. Not a bad price to ensure energy stability and security of supply in South Australia. What did members opposite then sell them for? They sold them for nearly $10 million less. The former Marshall government described— An honourable member interjecting: The Hon. A. KOUTSANTONIS House of Assembly The Hon. A. KOUTSANTONIS: Like ETSA is a lease? Like that lease? Members interjecting: The Speaker House of Assembly The SPEAKER: Order! Member for Morphett! The Hon. A. KOUTSANTONIS House of Assembly The Hon. A. KOUTSANTONIS: The former Marshall government described Labor's original plan to restrict the use of the generators to emergency backup as a shocking waste of taxpayers' money. The former government told us these units would no longer be considered in an emergency; it would be available in the grid to be used. How is that working out? Nearly half of these generators are mothballed—not operational and not available to the grid. Members opposite signed a contract for emergency backup and they assured this house that we would still have those generators available for backup, but of course they are not during winter periods. They didn't foresee that there might be issues in winter. So, once again: they sold ETSA— Mr Patterson interjecting: The Speaker House of Assembly The SPEAKER: Member for Morphett! The Hon. A. KOUTSANTONIS House of Assembly The Hon. A. KOUTSANTONIS: —lost an election, got back in and then sold our generators again. Mr Patterson interjecting: The Speaker House of Assembly The SPEAKER: The member for Morphett is warned. The Hon. A. KOUTSANTONIS House of Assembly The Hon. A. KOUTSANTONIS: If we had these generators at our disposal, we could guarantee supply for our constituents and guarantee stability for our businesses. Members opposite are part of the guilty party who sold these generators. The Hon. J.A.W. GARDNER House of Assembly The Hon. J.A.W. GARDNER: Point of order. The Speaker House of Assembly The SPEAKER: I understand the point of order has been withdrawn, but I do observe that the member for Morphett is now on two warnings.