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Legislative Council - Fifty-Third Parliament, Second Session (53-2)
2017-03-28 Daily Xml
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Paris Climate Change Agreement

The Hon. T.T. NGO (14:56): I have a question for the Minister for Climate Change. Can the minister tell the house about the role that batteries and new technologies will play in helping Australia meet our commitment to the Paris agreement?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Climate Change) (14:56): I thank the honourable member for his most important question. The clear advice is for the Australian government to meet the obligations that they have signed up to in terms of the Paris Agreement, and that is to limit global warming to 2º or less, preferably.

The electricity sector must decarbonise by the middle of the century. That point has been made in this place several times in recent months. This means that we need to find ways of putting more renewable energy into the Australian grid, not less, which is what the Liberals' ambition is, of course. Their ambition, their energy policy, is still encapsulated in a picture of a lump of coal being passed around the front bench of federal parliament.

We need to improve ways in which we can store energy that's produced in a renewable fashion. This is why the South Australian government has stepped up; we are not shying away from the challenge. We know that the federal government hasn't got a plan at all. We have seen this white-knuckle panic from the federal government in recent weeks, suddenly realising, goodness me, that they haven't got a plan, and so they have come up with some thought bubbles in recent days.

We, of course, will continue in our way of helping the federal government wherever we can. We know, as the experts have told us, that the only way the federal government can actually meet the commitment that it signed up to in Paris is to decarbonise electricity generation in this country, and it is South Australia that is leading the way and showing the way that can be done.

As I said, as others have come up with thought bubbles, we are responding and we are, at the same time, putting downward pressure on electricity prices whilst securing more clean energy for this state.

The Hon. D.W. Ridgway: I haven't noticed that on my bill.

The Hon. I.K. HUNTER: There's plenty of evidence to show that, in fact, the penetration of renewables has been driving down the wholesale price of electricity for a long time. The Hon. David Ridgway raised the point, 'What are the margins the retail providers are making?'

The Hon. D.W. RIDGWAY: I didn't raise that question. Point of order, Mr President: I did not raise any issue about retailers.

The PRESIDENT: Let me acknowledge you on your feet. Point of order, the Hon. Mr Ridgway.

The Hon. D.W. RIDGWAY: I did not raise any issues about retailers. I asked: show me on my bill where prices have gone down?

The Hon. I.K. HUNTER: The Hon. Mr Ridgway might not understand what his question actually meant, Mr President, because his bill is sent to him by retailers. So, if renewables are indeed driving down the wholesale cost of electricity and yet he is not seeing it on his bill, then the Hon. Mr Ridgway must surely understand there is a problem with the retail margin.

Our Premier has announced a comprehensive energy plan, a comprehensive energy plan which actually has a real cogent plan in it, unlike the plan that the Hon. Mr Lucas carries around with him continuously, painted in black, entitled '1836—back to the future'.

Our Premier has announced a comprehensive energy plan that will give our state control—our state—again of our energy future. A key part of the plan is a new $150 million renewable technology fund. The fund will see the southern hemisphere's largest battery installed right here in South Australia to store renewable energy and add significant stability to our grid. This announcement complements Carbon Neutral Adelaide, South Australia's 50 per cent renewable energy target and our commitment to zero net emissions by 2050, which I have discussed in this place over the last year or two.

These policies—bold, strong and consistent—are the reason we have seen a proliferation of investment in South Australian companies helping to pave the way to a low carbon economy. Tindo, Australia's only solar panel manufacturer, is based in Mawson Lakes, I am advised, creating local jobs in the advanced manufacturing sector. ZEN Energy, I am advised, established in South Australia in 2004, is selling battery storage to households and commercial operations from their Tonsley headquarters, and they have already employed, I am advised, about 40 people there, with more growth on the horizon. Then we have, of course, Sundrop Farms, which grows premium produce in an arid climate using a state-of-the-art greenhouse facility, using salt water, sea water and solar thermal energy to produce electricity, desalinate water and to warm the greenhouse.

The government's energy plan will see further investment in renewable energy, advanced manufacturing and future technologies. So, while we have been very busy implementing this once-in-a-generation investment in our state's future, what have those opposite been doing? Have they been jumping to their feet congratulating the government on our activity whilst the federal government has been doing absolutely nothing? No. Have they stayed silent? No, they haven't done that either.

What they have done is said, 'We don't want to actually have an energy plan. We're going to outsource it to the feds. We're going to outsource responsibility for electricity in this state to the federal government to make determinations in South Australia's best interests.' We have seen how well that has worked for us, having the federal government, led by Prime Minister Malcolm Turnbull, indicating an interest in South Australia or indeed the National Electricity Market and how well that works in the interests of South Australians. That's the plan that the Liberals have: abdicate responsibility for a major sector—

Members interjecting:

The PRESIDENT: Order! Allow the minister to finish his answer.

The Hon. I.K. HUNTER: —and to deliver a public good. Whilst the Liberals, we know, hate renewable energy (they love coal), it is worth taking note, I think, of what experts and the community are saying about Premier Weatherill's energy plan. Credit rating agency, Moody's, said:

…this plan—if executed as outlined—has a high likelihood of improving the state's energy security and reliability over time.

David Green, a partner at Lyon Group, said:

…the announcements by the government today have been very positive for our full pipeline of projects, so we've looked to have a significant number of projects in South Australia, particularly because of the quality of the solar resource there but also because of the benefit that batteries will bring to the market, and so from Lyon's perspective we've been pursuing a pipeline of projects, which is very significant for South Australia.

Mr Kane Thornton from the Clean Energy Council said:

The South Australian government has today outlined a strong and detailed strategy to create a 21st-century power system that is more resilient and affordable, while making greater use of renewable energy and storage.

The range of measures announced by Premier Jay Weatherill demonstrates that renewable energy and energy storage can contribute toward a more resilient and secure energy system.

Ms Amanda McKenzie from the Climate Council said:

Smart, clean, renewable energy coupled with storage technology is the future of Australia's energy system. Renewables and storage technologies means zero emissions, affordable power and electricity that's available every hour of every day.

Mr Andrew Stock, also of that council, has added:

This announcement means there will also be significant local economic opportunities available, opening up the market for a number of Australian-based battery storage companies. It's a huge opportunity for innovation here in Australia, including manufacturing, delivery and operations.

So, a number of people have said, 'This is a good plan. This is a plan that's going to deliver jobs for the future; economic uplift for the state.' In contrast to our thought-out and measured response, we have seen the federal government fail again to take responsibility for the National Electricity Market. A federal Liberal government that lurches from thought bubble to thought bubble. We have had Malcolm 'King Coal' Turnbull saying that he wouldn't support taxpayer funds being used to bail out Hazelwood in Victoria, but that is exactly what he and Steven Marshall, the member for—

The Hon. R.L. BROKENSHIRE: Point of order, Mr President.

The PRESIDENT: Point of order, the Hon. Mr Brokenshire.

The Hon. R.L. BROKENSHIRE: I trust that a minister of the Crown would honour protocols and the Prime Minister that we should all respect is the Hon. Prime Minister, Malcolm Turnbull, and Mr Marshall is the Leader of the Opposition. Why are they breaking protocols, sir? They need to be pulled to order.

The PRESIDENT: Order! Minister, please use the correct titles.

The Hon. I.K. HUNTER: Thank you, Mr President. If the honourable member had not interrupted me, I was just about to say Mr Steven Marshall, member—I think that is where I stopped and he jumped to his feet—for Dunstan. That is exactly what those two were demanding that we do in South Australia with Alinta. Whilst the honourable Prime Minister has ruled this out in Victoria, he and his opposition leader in South Australia have said, 'No, no, this is what the South Australian government should be doing, bailing out a private energy company.' Once again, Mr Malcolm Turnbull and Mr Josh Frydenberg have one rule for the Eastern States and one for South Australia.

Members interjecting:

The PRESIDENT: Order!

The Hon. J.S.L. DAWKINS: Point of order. The minister seems to want to make a habit of eight-minute plus answers, and it does take away questions from the rest of the chamber. I ask you to bring him to a conclusion.

The PRESIDENT: Honourable minister, can you come to a conclusion, please?

The Hon. I.K. HUNTER: I would have been finished a lot longer ago without the interjections, of course, but I will try to speed up my delivery. As always, the Prime Minister has been heavily backed in by Steven Marshall, the Leader of the Opposition and the member for Dunstan. When the community was calling for leadership, Steven Marshall, the member for Dunstan, was afraid to defend South Australia. That was not his first instinct.

His first instinct was to get on the phone to the Prime Minister and say, 'What can I say?' or to get on the phone to the member for Sturt and say, 'What can I say?' Where was he when the federal Liberals were trashing any semblance of national energy policy? Nowhere; he was missing in action. Then the feds cut the renewable energy target. They tried to abolish the Clean Energy Finance Corporation. They slashed funding to the Australian Renewable Energy Agency.

Members interjecting:

The PRESIDENT: Order!

The Hon. I.K. HUNTER: They abolished an effective and efficient national market-based mechanism that was reducing carbon emissions and it is exactly what all of industry is now calling for to be reinstated in terms of an emissions intensity scheme. All these initiatives were part of a comprehensive federal policy that would have seen new investment in energy assets, and they trashed them—the federal Liberal Party trashed them.

Then what did we see: lo and behold, private industry withdrawal, because there was no security for them, no security for investment. They can't risk their capital in an environment where they don't know what the federal government, from day to day, will be advocating in terms of energy policy. How can any private fund manager or any private company invest their shareholders' capital when they don't know what the energy market policy arising from the federal government will be from day to day?

The whole way through in this lurch from thought bubble to thought bubble, the member for Dunstan, Mr Steven Marshall, and the South Australian Liberal Party have been on the phone trying to find out what their running orders are from the member for Sturt. 'What can we say on radio?' Their first instinct is not to stand up for South Australia, not to jump to their feet and say, 'This is in South Australia's interest.' No, indeed, they go to the member for Sturt and the Prime Minister and say, 'What are we allowed to say?'

They were told, 'Don't make any decisions. Don't go out and stand up for your community. Why don't you hand over all decision-making powers to the federal government.' That's exactly what the Liberal policy is: let's abdicate all responsibility and let the feds—

Members interjecting:

The PRESIDENT: Order! Will you come to a conclusion?

The Hon. K.J. Maher interjecting:

The PRESIDENT: The honourable Leader of the Government, please desist.

The Hon. I.K. HUNTER: We know how well that works. We have seen that the federal Liberal government just doesn't care about South Australia's energy security. This is why we are taking charge. As a state, we are taking charge of our energy future. South Australians will be backing this government, as they are right now, because we have a plan in place to deliver energy security and to drive down costs in the longer term, which the Liberals have no interest in.

Once again, on many issues, we have the community, we have the trade unions, we have the business sector and we have the energy companies backing the government's plan, and we have the Liberals out there saying, 'No, no, let's wait. Let's wait for another review to be done and let's ask Canberra what we are allowed to do and say.' This state government will be standing up for South Australians. We will run our own energy policy in South Australia, because we cannot rely on the federal government to stand up for South Australians' interests.

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