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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2017-03-28 Daily Xml
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Ministerial Statement

State Energy Plan

The Hon. J.W. WEATHERILL (Cheltenham—Premier) (14:06): I seek leave to make a ministerial statement.

Leave granted.

The Hon. J.W. WEATHERILL: On Tuesday 14 March, I announced a plan for South Australia to take charge of its own energy future. It is a plan that protects people. It is a plan that is about sourcing, generating and using more South Australian power in South Australia and we are putting that plan into action.

Today, we are opening expressions of interest from companies seeking to build South Australia's state-owned gas-fired power station. With a capacity of up to 250 megawatts, it will mean South Australians will have their own stand-by power available for emergencies and will operate at all times to provide system stability. The expression of interest is open from today and will run until Tuesday 11 April.

Another key element of the plan is to build Australia's largest battery here in South Australia. This large-scale battery will store renewable energy from the wind and sun, adding further stability to our network. It is the first project in our new $150 million renewable technology fund. An expression of interest to build Australia's largest battery was opened on Wednesday 15 March and will close this Friday, 31 March. I look forward to updating the house on the results of this process; however, I can say that it has already had more than 200 downloads on the EOI documentation, with interest from Australia, North America, Europe and Asia.

The state government is also using its bulk-buying power to attract new electricity generation to increase competition and put downward pressure on prices. This procurement has been split into two parts: 25 per cent of our contract to secure energy from dispatchable renewable sources for up to a 20-year term and 75 per cent to attract a new competitor into the market. We have had strong interest in these contracts and aim to have them finalised by the middle of the year.

The state government is also offering incentives to source more gas for use in South Australia. On Friday 17 March, we announced a further $24 million in PACE grants to help accelerate gas exploration. These grants will create around 100 jobs for South Australians. That same day, we also announced an offer of a petroleum exploration licence in the Otway Basin, offering 10 per cent royalties to landowners to help unlock the gate.

Our new energy security target will increase South Australia's energy self-reliance by requiring more locally generated, cleaner, secure energy to be used here in South Australia. This will come into effect on 1 July this year and we will soon have more details about its operation.

Lastly, today we have introduced legislation into this parliament—

Ms CHAPMAN: Point of order: the Premier has spoken on this bill. The bill is before the parliament and he has already spoken on it. It is out of order for him to speak further and to do anything in relation to the contents of that bill. He ought to know better.

The SPEAKER: It would be entirely out of order if the Premier were canvassing the merits of the bill, which is still in its second reading before the house, but the Premier may refer to the bill's existence.

The Hon. J.W. WEATHERILL: Thank you. Today, we have introduced legislation into this parliament to give the energy minister powers of direction over the market so that South Australia's interests come first.

Mr Marshall: The Premier is completely ignoring your ruling.

The SPEAKER: May I listen to just a little bit more of the Premier before I am asked to rule on whether he has breached the convention. Premier.

The Hon. J.W. WEATHERILL: Thank you.

Ms Chapman interjecting:

The Hon. J.W. WEATHERILL: No, I won't be doing that; I have listened very carefully to the Speaker. South Australia will become more self-reliant for its power supply, as we take charge to source, generate and control more of our power right here in South Australia. Our work on delivering this plan has now begun.

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