Renewable Energy Initiatives

The Hon. T.T. NGO (14:45): My question is to the Minister for Sustainability, Environment and Conservation. Will the minister update the chamber on the innovative renewable energy initiatives being undertaken in regional South Australia?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation) (14:45): I would like to thank the honourable member for his very important question. As honourable members would know, I have spoken about the importance of state action on climate change on many occasions in this chamber, and I will continue to do so, because this government will not put its head in the sand about climate change issues like other governments around the country have been doing.

Indeed, we are very proud to be leading the nation in combating climate change and attempting to mitigate its impacts. It just makes good sense. From an environmental point of view the evidence and the science are clear: we must act now. From an economic perspective, South Australia is proof of the enormous economic potential that exists in strengthening and growing our renewable energy sector.

In August the Premier released this government's 10 economic priorities. The first priority clearly sets a target of unlocking the full potential of South Australia's resources, energy and renewable energy. This priority was chosen because we have seen the renewable industry sector grow and create jobs in our state. We have seen how this industry can flourish to the benefit of our environment as well as our economy. South Australia is rich in renewable energy resources such as wind and solar, and this government has worked hard in partnership with industry and the community to grow the renewable energy industry in this state and become a national leader in green industries.

We have set ourselves a target of 33 per cent renewable electricity by 2020, and it is very possible that we will reach this target in the coming year. I understand that some people have made extrapolations from earlier data which suggest that we have already reached the target, but we will not get the hard facts to confirm that for a few weeks yet.

Under this Labor government the installed capacity of renewable energy has grown from 0.8 per cent in 2002 to 31.7 per cent. The economic benefits are undeniable. The state's existing 15 wind farms have resulted in 842 direct jobs, I am advised, and over 2,500 jobs in total during the construction phase, many of which are in regional South Australia. In October 2013 the state government committed to an investment target of $10 billion in low carbon generation by 2025 in recognition of the economic development potential of this industry.

I recently travelled to some rural centres to visit great examples of innovative work being done in this area. On 10 September, I think, I travelled to Port Augusta and had the great pleasure of visiting Sundrop Farms, located at the top of the gulf north of Goyder's Line. This is the world's first commercial greenhouse showcasing sustainable horticulture using solar thermal technology, here in this state. It uses innovative technology to grow produce using primarily renewable resources, including sea water and sunlight.

Instead of being water and energy intensive, Sundrop Farms uses the sun's energy to desalinate sea water to produce freshwater irrigation. It produces electricity to power, heat and cool its greenhouse, and uses sea water to ventilate and sterilise the air in the greenhouse, making it possible to grow crops without chemical pesticides. The salt and nutrients won through the desalination process are reused as fertiliser or sold for other agricultural purposes.

Sundrop Farms has been funded by the state government to build a solar thermal parabolic trough array to use in its experimental greenhouse. In October 2011 Sundrop was awarded $345,000 funding by Renewables SA, and the pilot project was commissioned in February 2012. In August 2013 Sundrop Farms and the Clean Energy Finance Corporation announced an agreement for the CEFC to co-finance Sundrop Farms' 20-hectare expansion project at $40 million in contracted value.

They now have development approval to expand this greenhouse fivefold, using a solar thermal input, which will employ approximately 200 locals. It will be one of the biggest employers in Port Augusta. While I was in Port Augusta I also met with the community reps of the REpower Port Augusta campaign. As many of you will know, this campaign is fighting to turn the old coal plant into a renewable energy plant, and they have the very strong support of the member for Stuart in this regard.

This government is proud to be partnering with the Australian Renewable Energy Agency (ARENA) and Alinta Energy to co-fund a $2.3 million feasibility study on the viability of this plan. I was quite impressed by the strong community support and action for the REpower Port Augusta campaign, and I look forward to the completion of the study later in 2016.

This is one of a couple of examples of the many impressive ventures in South Australia that are good for our environment and for our state’s economy. Much of the success can be put down to the Australian Renewable Energy Target, the RET program. This is a scheme administered by the Clean Energy Regulator. It sets the target that by 2020 at least 20 per cent—or I think the target was 41,000 gigawatt hours—of Australia’s electricity supply would come from renewable sources.

The RET consists of two main schemes, I am told: the large-scale renewable energy target, which creates a financial incentive for large renewable energy power stations, and the small-scale renewable energy scheme, which encourages owners to install small-scale renewable energy systems, for example, rooftop solar, solar water heaters, etc.

As we are seeing from our experience in South Australia, the RET has been highly successful to date. South Australia has attracted $5.5 billion of capital investment in renewable energy, with 40 per cent or around $2 billion of that being directed towards regional South Australia. The Clean Energy Council estimates that close to $3 billion of the total has been invested into wind farms in this state and, as a result, 1,473 megawatts of wind power has been generated, which represents about 41 per cent of the nation’s wind farm capacity.

This could all be put in jeopardy because of what is happening at the federal level. In keeping with its anti-environmental and anti-science stance, which has included decisions such as cutting funding to the CSIRO, slashing the Climate Council and abolishing the science ministry, the Abbott-led federal government has also undertaken a review of the RET. The resulting report was compiled by a panel led by Mr Dick Warburton. It modelled five options but conveniently recommends just two, and those two are to either abolish the RET scheme or significantly reduce it.

Following either of these two recommendations would jeopardise thousands of jobs and billions in investment in this state. It would also open us up to ridicule on the world stage at a time when countries such as the United States and China are ramping up their activity to combat climate change. Leaving aside the fact that this represents another broken promise in the long list of promises broken by the Abbott government in its first 12 months in office, this panel is clearly a political setup job.

The panel, which was hand-picked by the Prime Minister’s office, I understand, and as I said, chaired by Mr Warburton, a well-known and outspoken climate change sceptic, was set up to provide cover to the Abbott government to reduce or abolish the RET. It seems that they made up their mind about what they wanted to do before they even had the report in their hands. They appear to conveniently overlook their own findings that consumers will be better off under the current scheme from about 2020, and this government strongly opposes any move by the federal government to scale back the RET. I call on my colleagues in this chamber across the aisle, and certainly my colleagues in the state Liberal Party, to do the same and stand up for our state and stand up for what is clearly in the best interests of our economy and our regions.

We in the state government see renewable energy as an avenue for ensuring the economic stability and environmental prosperity of this state, and the RET is an important measure not only in reducing greenhouse gas emissions within the electricity-generating sector but also for establishing significant investment in our state. Any reduction to the RET will jeopardise the $13 billion of investments in the renewable energy sector, greatly affecting South Australia’s economic and investment opportunities. I am not sure that the state members of the Liberal Party will do that, but I ask them not just to take my word for it that this is important to the state. It is very clear that the situation is creating an enormous amount of anxiety—

The Hon. J.S.L. DAWKINS: Point of order. Mr President, given that the minister has been on his feet answering this question for over eight minutes, I ask you to direct him to bring his answer to a conclusion.

The PRESIDENT: The honourable minister, do you want to complete your question?

The Hon. I.K. HUNTER: Yes, I am in the throes of doing so, Mr President. We just see an example from the Liberals that they get embarrassed when we talk about the Renewable Energy Target. They are embarrassed because they have said absolutely nothing—nothing—to stand up to the Abbott government. They will not stand up for this state. We have seen it before with the River Murray; we are seeing again with renewable energy targets.

Renewable energy programs are out in the regions in Liberal electorates, and what do we hear? What do we hear from the Liberals, Mr President? Nothing; absolutely nothing. This mob is inveterately scared of standing up for our state. They won’t stand up for South Australia; they will not even stand up for the regions in this state. If I am invited, by a supplementary, I have another 10 minutes to talk about this scheme and the disgraceful state Liberal Party who will not stand up for the citizens of this state, or our economy.