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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2024-08-29 Daily Xml
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Question Time

Energy Security

The Hon. V.A. TARZIA (Hartley—Leader of the Opposition) (14:05): My question is to the Premier. Can the Premier guarantee that he will keep the lights on this summer? With your leave, sir, and that of the house, I will explain.

Leave granted.

The Hon. V.A. TARZIA:The Australian reports today that AEMO has warned that, quote:

Households face an ongoing multi-year risk of power shortages in…South Australia from this summer…

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Infrastructure and Transport, Minister for Energy and Mining) (14:05): It's the same warning that AEMO gave last summer and there were no blackouts, and it's the same warning they give almost every summer. What it is, sir, is a statement—

Members interjecting:

The Hon. A. KOUTSANTONIS: Sorry?

Members interjecting:

The Hon. A. KOUTSANTONIS: That's right.

The SPEAKER: Members on my left, including the leader, will listen in silence. It's been less than 45 seconds and the noise levels are already unruly. We had a couple kicked out yesterday in the first six minutes. Let's do better today. The minister.

The Hon. A. KOUTSANTONIS: The reliability standards that we have in this state are being met. They are being met, and AEMO do not say that there is any shortfall to our reliability standard, which is that unserved energy should not exceed a maximum of .002 per cent of total demand in a year; that is, a larger event, as described above, not for more than every five years. The idea that South Australia is going to suffer blackouts because of a policy of this government is just wrong.

Members interjecting:

The Hon. A. KOUTSANTONIS: And no level of interjection opposite can change that. However, Mr Speaker—

Members interjecting:

The SPEAKER: Everyone got the first general warning, so your next one is going to be your second warning. For you, it will be the third.

The Hon. A. KOUTSANTONIS: Privately owned generators like Torrens Island B1 gas-fired generators are 200 megawatts; that's gone for mothballing. Then, there are two other units: 75 megawatts at Port Lincoln and 63 megawatts at Snuggery. That's roughly just over 300 megawatts, and they have been displaced. Do you know what displaced them, sir? They were displaced because the state had 277 megawatts of generation that was not in the market, that was there as backup reserve. And guess who privatised them? The guilty party, sir, the guilty party. With every action there is an equal and opposite reaction. You can't privatise generators into the commercial market and expect that there not be a reaction. The generators that we bought for system security were not participating in the market. They were sitting there in case of an emergency. The Liberals sold them. Then the private sector responded.

Mr BATTY: Point of order.

The SPEAKER: Member for Bragg, the Leader of Opposition Business.

Members interjecting:

The SPEAKER: The Leader of Opposition Business will be heard in silence.

Mr BATTY: The minister is making it too easy for the new guy. This is a very obvious breach of standing order 98. The minister is debating. He should return to the substance of the question.

The SPEAKER: The Minister for Energy, if you could keep things on topic that would be appreciated.

The Hon. A. KOUTSANTONIS: Under the reliability standards the ESOO does not expect any reliability gaps. Under the reliability standards the 2024 ESOO does not expect any reliability gaps in South Australia before 2033-34. AEMO is tendering for off-market reserves in Victoria, New South Wales and South Australia this summer to manage potential low-reserve conditions. The ESOO is not a forecast of outages from lack of supply; it is a signal to the market.

These were the same concerns raised by the opposition 12 months ago about last summer. That didn't eventuate. They keep on doing this each and every year. Each and every year, they keep on doing this. The unfortunate aspect for members opposite is that, in the absence of an alternative policy, come up with one.

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