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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-06-03 Daily Xml
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RENEWABLE ENERGY

The Hon. J.A. DARLEY (15:54): I rise today to speak about renewable energy and possible renewable energy projects for South Australia. In 2001 the federal government introduced a mandatory renewable energy target program, which outlined a target of 12,500 gigawatt hours by 2010, with a further target of increasing renewable energy to 45,000 gigawatt hours by 2020. This is in addition to any emissions trading scheme that may be introduced and implemented. In order to achieve these targets, approximately 10,000 megawatt hours of renewable wind energy installations are required by 2020 across Australia.

South Australia has some of the best sites in the world for renewable energy. Hot rocks exploration company Geodynamics is developing a geothermal site at Innamincka, which has the hottest geothermal rocks in the world at 250° Celsius. In addition, South Australia has some of the best potential sites in the country for wind farms. Already nine wind farms have been built across the state at sites such as Lake Bonney, Wattle Point and Snowtown.

Currently, South Australia has 56 per cent of Australia's wind power and 90 per cent of the country's geothermal investment. However, this amounts to less than 1,000 megawatt hours of renewable energy, which is less than 10 per cent of what is needed across the country to meet renewable energy targets. It is not inconceivable that South Australia could have the potential to supply a substantial amount, if not all, of the 10,000 megawatt hours that is needed to meet the 2020 renewable wind energy target.

In order to achieve this, any further developments will need to ensure the availability of infrastructure by way of electrical transmission lines between the source of the power generated and the existing network. For example, between Innamincka and Olympic Dam there is a requirement for approximately 400 to 500 kilometres of infrastructure. On the West Coast there is a requirement for approximately 300 kilometres of infrastructure. A side benefit of development of the infrastructure and wind generation capacity would increase the potential for further mining ventures in the area, as well as providing electricity for the West Coast.

I understand that the cost of transmission infrastructure could be approximately $1 million per kilometre. All existing wind farms in the state are currently located near existing transmission infrastructure which, I understand, is near capacity. Again, any further developments will need to consider the proximity of effective transmission networks and the feasibility of providing these links.

Under the national electricity rules, a proponent that is a developer of electrical capacity is required to pay all the connection costs to the electricity grid; that is, the transmission line that connects the generator to the network. If other proponents subsequently commit within three years, a rebate or refund to the original proponent may be payable.

Due to the high cost of providing transmission and infrastructure, there is a built-in disincentive to be the first proponent into the system. Proponents will initially wait until another proponent provides the initial basic infrastructure costs. It would appear that, in order to attract proponents of electricity generation, the government may need to give consideration to initially funding the transmission infrastructure and recovering these costs over the life of the project.

I am encouraged to see that the state government has tentatively proposed allocating $20 million towards the renewable energy industry in the upcoming budget and I hope that the issues raised today will be taken into account.

Time expired.

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