The South Australian Energy Plan released today has several positive elements to provide reliable and affordable power for business, including support for dispatchable renewable power and incentives for gas producers to serve the domestic market. The tender for the State Government’s energy needs will also help to incentivise competition to provide firm power for South Australian consumers, particularly business.
While it has taken two load shedding events since the 28 September 2016 blackout for concrete action, we support the State Government’s willingness to take ownership of the issues at hand. However, we have been a strong advocate for an independent process to analyse the most cost-effective options to transition the National Electricity Market to low carbon and we still fully support the national Finkel Review.
“The South Australian Business Chamber welcomes the State Government’s focus on reliable and affordable electricity after the significant impact unaffordable and unreliable power has had in this State, particularly over the past eighteen months,” Executive Director, Industry and Government Engagement, Anthony Penney said today.
“While the South Australian Business Chamber supports a temporary generation measure to provide immediate security, the State Government must undertake and consult on detailed modelling of all costs and benefits to build a $360 million gas fired generator, akin to the process that ElectraNet is current undergoing in its assessment of a new interconnector,” Mr Penney said.
“Support for a new renewable storage option, which could include solar-thermal or grid-scale batteries, will not only reduce carbon emissions, but as per today’s announcement should be predicated on providing firm power to industry to help with reducing prices.”
“Australia has been advancing as a nation for over 100 years and progressively moving towards harmonised markets. While South Australia has strong concerns about electricity reliability, the State Government needs to maintain support for the national Finkel Review process to come up with broadly consulted recommendations backed by international expertise.”
“There is no point in South Australia intervening in a national market and then expecting that national market to work in our favour when it suits us. This will only cause other States to follow a similar isolationist pathway and we should continue to push for cooperative outcomes with other States and Territories.”
“The South Australian Business Chamber knows that with a declining population, our successful businesses are increasingly focused on interstate trade and exports and we need to maintain alignment with our slogan, open for business.”
“Any market interventions by any level of Government need to be very carefully considered and consulted on with all key stakeholders,” Mr Penney said.
