Renewable Energy and Clean Technology

The Hon. J.M. GAZZOLA (14:40): My question is to the Minister for Climate Change. Will the minister inform the chamber about how South Australia is positioned to take—

Members interjecting:

The PRESIDENT: Order! The Hon. Mr Gazzola has the floor.

The Hon. J.M. GAZZOLA: Will the minister inform the chamber about how—

The Hon. D.W. Ridgway interjecting:

The Hon. J.M. GAZZOLA: Did you say something?

The PRESIDENT: No, you are being rudely interjected by the Leader of the Opposition, so could you please ask your question?

The Hon. J.M. GAZZOLA: Will the minister inform the chamber about how South Australia is positioned to take advantage of the global transition to renewable energy and clean technology?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Climate Change) (14:40): I thank the honourable member for his most important question. Last week the Conservation Council and the ACTU released the Jobs in a Clean Energy Future report. The report found that cutting carbon emissions in line with the Paris climate goals could generate more than one million extra jobs by 2040. It showed that, for our state, this would mean an additional 68,000 jobs. The report, based on modelling by the National Institute of Economic and Industry Research, demonstrates how the right set of carbon reduction policies—

The Hon. K.J. Maher interjecting:

The PRESIDENT: Will the leader of the government please allow your colleague and fellow minister to complete his answer?

The Hon. I.K. HUNTER: The report, based on modelling by the National Institute of Economic Industry Research, demonstrates how the right set of carbon reduction policies would generate far more jobs than were lost in an economy. A landmark report by Ernst & Young and the Climate Council echoes these findings, I am advised. It found that a 50 per cent renewable energy target across Australia by 2030 will create almost 50 per cent more jobs in the sector than the current trajectory, or around 28,000 jobs nationally. Ernst & Young's state-of-the-art modelling finds that around 3,600 jobs will be created in our state from Australia adopting a 50 per cent renewable energy target by 2030 and that:

On a per capita basis, South Australia is likely to experience the greatest net growth in jobs…around four times the number of jobs per capita compared to Victoria.

This is quite an exciting opportunity for our state. We have already seen $7.1 billion invested in renewable energy projects. More than 40 per cent, or some $2.94 billion of this investment has been in regional South Australia, and globally there is a race on for renewable energy investment. This is an industry that employs almost eight million people around the world, I am advised, and is rapidly expanding. In 2015, $329 billion was invested globally in renewable energy. It was a record year for renewables last year.

In 2015, according to the International Energy Agency, renewables overtook coal-fired power generation and, for the first time, there was more renewable energy capacity added than any other source. Honourable members might do well to reflect on the following quote from the Financial Times reporting on these IEA findings:

About 500,000 solar panels were installed every day last year as a record-shattering surge in green electricity saw renewables overtake coal as the world's largest source of installed power capacity. Two wind turbines went up every hour in countries such as China, according to the International Energy Agency officials, who have sharply upgraded their forecasts of how fast renewable energy sources will keep growing. 'We are witnessing a transformation of global power markets led by renewables,' said Fatih Birol, Executive Director of the Global Energy Advisory Agency. Part of the growth was caused by falls in the cost of solar and onshore wind power that Mr Birol said would have been unthinkable only five years ago.

Average global generation costs for new onshore wind farms fell by an estimated 30 per cent between 2010 and 2015, while those for big solar panel plants fell by an even steeper two thirds, an IEA report published on Tuesday showed. The Paris-based agency thinks costs are likely to fall even further over the next five years, by 15 per cent on average for wind and by a quarter for solar power. It said an unprecedented 153 gigawatts of green electricity was installed last year, mostly wind and solar projects, which was more than the total power capacity of Canada. This was also more than the amount of conventional fossil fuel or nuclear power added in 2015, leading renewables to surpass coal's cumulative share of global power capacity, though not electricity generation.

You would think that those occupying the opposition benches would be doing a lot more to show support for an industry that is delivering jobs, investment and opportunity, particularly in regional South Australia, but that is perhaps too much to expect of them.

Yet, we have seen renewal energy embraced by both businesses and households. I recently spoke in this place about Yalumba, the iconic South Australian winery, installing a 1.4 megawatt solar system, the largest solar system installed in any winery in the country, for a short time at least. We also got it at Adelaide Airport, with a solar PV system totalling 1.28 megawatts. This includes 1.17 megawatts of solar PV on the rooftop of the short-term car park, which offsets the entire electricity consumption of the car park, making it Australia's largest solar car park, I am advised. Nearly one in three homes in SA have rooftop solar and we are installing solar panels on hundreds of Housing SA properties.

The rest of the world is looking to South Australia. They are seeing that a subnational government can be bold and put bold and ambitious climate change policies in place and create long-term jobs and investment opportunities. We have just down the road today 350 delegates at the Convention Centre coming directly to South Australia to see what we have been doing in terms of renewables and the three Rs. This is a UN Asia-Pacific convention—the first time this body has ever met outside a national capital, just down the road here, and they have come to Adelaide—

Members interjecting:

The PRESIDENT: Order!

The Hon. T.J. Stephens interjecting:

The PRESIDENT: Order! Minister.

The Hon. I.K. HUNTER: They have come to Adelaide because of our reputation and our leadership in these sectors. Our policy framework runs in stark contrast to the inconsistency shown by the federal government, which placed the entire renewable sector in limbo by first trying to remove the national RET altogether, before then opting for a significant cut.

The response from industry was swift, of course. Investment in the renewable industry sector fell about 90 per cent, I am advised, due to the uncertainty created by the Abbott/Turnbull government, soon to be the Abbott government again. We have the same uncertainty created here from those opposite and from the Leader of the Opposition, Steven Marshall, member for Dunstan. While South Australians were standing together in the face of the extreme weather events last month, we had these images of the Leader of the Opposition, Steven Marshall, member for Dunstan, on talkback radio and TV whining about renewable energy.

In a rare foray into public policy, Steven Marshall, Leader of the Opposition, member for Dunstan, attacked an industry that directly and indirectly employs thousands of South Australians. It was a chance for the Leader of the Opposition in the other place to stand up for South Australia when his federal colleagues were attacking our jobs, our industry and our investment. Instead of standing up for his state, instead of standing up for South Australia, he jumped on the bandwagon full of climate change deniers. It would be nice, for once, if the Leader of the Opposition—before the Hon. Mr Ridgway and the Hon. Mr Lucas and others relegate him to the back bench—took this opportunity to stand up for South Australia.

Renewable energy generation should not ever have been a political issue. Former Liberal leader, John Hewson, recently said that we must move beyond the short-term politics, learn the lessons of the South Australian crisis—

Members interjecting:

The PRESIDENT: Order!

The Hon. I.K. HUNTER: —initiate a redesign—

Members interjecting:

The PRESIDENT: Order!

The Hon. I.K. HUNTER: —of the National Electricity Market and, very importantly—

Members interjecting:

The PRESIDENT: Order! The minister has the floor.

The Hon. I.K. HUNTER: —agree on a national renewable energy target by 2030 that is consistent with our Paris commitments, those commitments that the federal government signed up to in Paris last December.

There is an opportunity to support a transition to clean energy, whilst creating local jobs for the South Australian community, creating the economic opportunities right here in South Australia that all the members of this place should be backing. I implore the opposition to put aside partisan politics and get on board with the renewable industries of the future that will create jobs in South Australia for South Australians.