The South Australian Liberal Opposition has today released their most detailed policy to date ahead of the 2018 election in the “Liberal Energy Solution” which is supported by credible market modelling conducted by ACIL Allen Consulting.
The key elements of their plan to reduce wholesale prices and secure reliability for South Australian consumers includes $200 million for a new interconnection fund and $150 million towards battery storage, including at a household level.
As the South Australian Business Chamber has previously argued, the Opposition will not go ahead and build a new, permanent back-up generator, and instead going to a reverse auction for the same level of capacity.
“The South Australian Business Chamber has always maintained that South Australia must take a national approach to addressing the cost and reliability of energy and is why we endorsed the independent Finkel Review to weigh up the costs and benefits of addressing high electricity prices and diminishing reliability,” says the South Australian Business Chamber Executive Director Industry and Government Engagement, Anthony Penney.
“It is clear that a large portion of the Liberal Energy Solution is dependent upon collaboration with other states, territories and the Federal Government through COAG and we support the Opposition’s willingness to work at a national level.
“The Federal Government will be required to play a role in this collaborative approach and should accept all Finkel Review recommendations, including a Clean Energy Target to ensure adequate, clean, baseload gas-fired power is available for South Australia.
“While the Liberal policy relies on the Federal Government resolving a national emissions reduction policy, all states and territories must ultimately agree on the Clean Energy Target.
“No doubt the $100 million battery storage fund for households will assist the broader grid, but the South Australian Business Chamber would also like to see support for small businesses to install batteries to help them cope with high prices.”
Mr Penney said the South Australian Business Chamber has supported additional investigation of interconnector options, particularly as they relate to further developing South Australia’s renewable energy resources and providing back-up power from interstate, and we welcome the Liberal commitment to progress a local renewable energy zone with appropriate interconnection.
“The South Australian Business Chamber would liked to have seen more of a focus on the high cost of gas in the Liberal Energy Solution, including incentives to help businesses become more efficient in their usage,” he said.
“We welcome the release of today’s Liberal Energy Solution and look forward to engaging with our members and the Liberal Opposition to ensure it does the best with limited resources to address our current energy crisis.”
