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House of Assembly - Fifty-Fourth Parliament, First Session (54-1)
2018-10-16 Daily Xml
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Electricity Interconnector

Mrs POWER (Elder) (14:47): My question is to the Minister for Energy and Mining. Will the minister please update the house on the progress of the South Australia/New South Wales interconnector?

The Hon. D.C. VAN HOLST PELLEKAAN (Stuart—Minister for Energy and Mining) (14:47): Thank you member for Elder. The member for Elder relentlessly campaigned on behalf of her constituents, families and small businesses, looking for cheaper electricity—cheaper and more reliable electricity than they were delivered under the previous government. Mr Speaker, you and this house would know—

Dr Close interjecting:

The SPEAKER: The member for Port Adelaide!

The Hon. D.C. VAN HOLST PELLEKAAN: —that delivering an interconnector between South Australia and New South Wales was a key plank of our energy policy, and we are delivering that. With regard to updating the house—

The Hon. A. Piccolo interjecting:

The SPEAKER: The member for Light is warned.

The Hon. A. Piccolo: I am trying to enlighten the matter, Mr Speaker.

The SPEAKER: You can do that in your community newsletter. The minister has the call.

The Hon. D.C. VAN HOLST PELLEKAAN: With regard to delivering on that interconnector, we have been extraordinarily well supported by experts in the field. ElectraNet's draft RIT-T report has shown that what we announced we would do before the election is very positive. They have been able to enunciate quite clearly benefits to South Australian and New South Wales electricity consumers.

The Australian Energy Market Operator has done similarly in its Integrated System Plan (ISP). We now have a third report, a report commissioned by the state government. We asked PwC and Jacobs to jointly look at this issue so that we may be able to make an even more informed contribution to the RIT-T process. That report has also said that this interconnector will deliver benefits to South Australian and New South Wales electricity consumers.

As this house knows, we have committed up to $14 million to bring forward some of the early works on this interconnector—things like route planning, environmental clearances and engagement with landholders—because we want to bring the work forward, work that normally would not be commenced until after the final go-ahead from the AER as a regulated asset. We are going to invest to get that work done sooner so that the project can be finished sooner. That work will, of course, be repaid to the South Australian taxpayer upon announcement by the AER that this will be a regulated asset.

We have already taken that proactive step, but this report we have had commissioned for us says that there are actually some other things that could be done and that this project might actually be even better for South Australians than we thought. This would involve building the interconnector to Buronga, near Mildura, and connecting it to around Red Cliffs, 20 kilometres south in Victoria, allowing some import and export with New South Wales. What that would do is it would actually connect the three states. It could be even better. Then, the second leg to Wagga would realise the full benefits.

It has shown an option that may deliver benefits faster, with an opportunity to energise a first phase of the interconnector by 2021. We are working very hard not only to deliver on our election commitments, to do the things that we said we would do, but more importantly, perhaps, to deliver cheaper, more reliable electricity for South Australians.

This is a key component of our plan. We are getting on and delivering it. The only commentators who don't approve of this plan are those opposite. Of course, they did approve of this plan not very long ago, but as soon as we announced it they decided they didn't approve of it. In answer to the member's question, there is another development in this program. We are determined to get this right for all South Australians.

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