Energy Policy

Mr BROWN (Florey) (14:51): My question is to the Minister for Energy and Mining. Can the minister explain how the government is delivering on its energy policies, and are there any alternative views and approaches?

The SPEAKER: The old 'alternative views' question.

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Energy and Mining) (14:51): I thank the member for Florey for his question and his keen commitment to energy transition. It is attracting not just local attention but the attention of the world. We have transformed our renewable energy generation from 1 per cent—

Members interjecting:

The Hon. A. KOUTSANTONIS: I always love it when Tim intervenes—the one person we fear.

An honourable member interjecting:

The Hon. A. KOUTSANTONIS: It is—the front! We transformed our renewable energy generation from 1 per cent in 2007 to 75 per cent. We are committed to achieving 100 per cent net renewable generation by 2027, which I think is a target we are going to meet. We are committed to doing this, but we can't do it without the role of gas-fired turbines. Gas-fired turbines are going to be critical. It has been a consistent message from us as a government, when we were in opposition and as a previous government that gas is going to play a critical role in the transition.

There will be a breakthrough technology ultimately one day that will be able to store energy efficiently and dispatch that, but to overcome those shortfalls we are going to need gas in the short term. That is why today we announced a new $17.5 million gas initiative offering matched funding for innovative gas projects: up to $2.5 million dollars for eligible projects that increase gas supply and capacity. We want to encourage projects that enhance geological knowledge of areas of potential gas supplies close to our existing infrastructure and that drive the adoption of new technologies to lift productivity and improve the efficiency of gas production.

We are also looking at gas storage solutions, underground aquifers. Iona in Victoria is a very, very important national reserve of gas. South Australia has the potential to have even larger or more significant gas storage options. One that we are looking at is in the Katnook, which is probably a very good opportunity for us to store gas. This is something that these funds could help unlock. Of course, we also want to support infrastructure to unlock new gas supply to improve deliverability.

I have to say, it is an approach that is unique to South Australian Labor—probably because we are so far ahead of the curve on renewable energy that we understand the complexities of it. It is also in stark contrast to members opposite, who are opposed to new gas basins and gas extraction in those basins. It is a unique antibusiness view of members opposite to be so opposed to gas extraction, especially in the South-East. But I have to say that securing supply is critical. If we could have an oversupply of gas in this state you would see prices in retail electricity generation drop, but that will take time.

The Hon. V.A. Tarzia: When?

The Hon. A. KOUTSANTONIS: The Leader of the Opposition said, 'When?' If the ban on fracture stimulation in the South-East were lifted, the only way it would get any meaningful investment is for members opposite to say openly and publicly that they would support the lifting of that ban, because no-one can rely on one government. You need to have bipartisan support for this and, until the Liberal Party come out and tell us their views on fracture stimulation, no-one will in invest in South Australia, because what they fear is another opportunistic ban like there was in the last parliament by the former Liberal government that they all voted for bar one.