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SA to spend $500m on Australia's largest battery storage and gas-fired power plant – politics live SA to spend $500m on Australia's largest battery storage and gas-fired power plant – politics live
(35 minutes later)
1.50am GMT
01:50
The first project to be funded out of SA’s $150m fund will be a grid-connected battery.
SA says it will be the largest in Australia to provide 100 megawatts of storage.
Not sure if this is the Billionaire’s Battery Pack or not.
1.45am GMT
01:45
Matthew Warren of the Australian Energy Council, representing 21 major electricity and natural gas businesses, says the plan gets the “core reform” right.
So it has moved away from trying to build more interconnectors to get power for New South Wales. It realised it needs [power] in South Australia first and foremost. The way they are doing it is expensive and we hope that would be overtaken by good policy and good investment, but at least they have gone down the right path.
1.40am GMT
01:40
New SA ministerial powers as a 'last-resort measure'
I mentioned early, the SA government is beefing up its powers to direct power companies in high demand times.
It includes the ability to direct generators to operate and direct the Australian Energy Market Operator to control flow on the interconnector. From the SA government release:
This will ensure every available option is activated to maintain the state’s electricity supply in an emergency situation or when market forces fail.
Drafting of new legislation will begin immediately. The minister’s power will be used as a last-resort measure if the national market does not act in South Australia’s best interests.
Updated
at 1.48am GMT
1.37am GMT
01:37
1.35am GMT
01:35
The budget for the SA plan breaks down like this:
The new gas-fired power plant = $360m
SA Renewable Technology Fund = $150m with $75m in grants and $75m in loans
Plan for Accelerating Exploration (Pace) grants to incentivise new gas production = $24m.
1.33am GMT
01:33
The government is tendering 75% of its electricity needs over the next 10 years to try to encourage construction of a new privately owned generator in the state.
Weatherill says he has shortlisted three potential bidders each of which have committed to building new power generators but he does not say what sort of generation.
He says their tender will be concluded quickly.
1.28am GMT
01:28
Weatherill says they looked closely at renationalising parts of the grid but it was too expensive and slow.
He says his first priority is to get new generators to South Australia to address the energy issues.
The second objective is to get “temporary support” for SA networks which could be using hybrid generators and gas.
Updated
at 1.36am GMT
1.25am GMT
01:25
Jay Weatherill says the landholder incentives make sense because the state has to unlock supply. He says gas is the transition fuel to renewables.
So we are dealing with the demand side in this package and the supply side. It makes a lot of intuitive sense.
1.22am GMT
01:22
Weatherill: landowners to get incentives for access for fracking and conventional gas
Asked whether the landowner incentives are for fracking and drilling, Weatherill confirms they will be.
It is not just about fracking, but unlocking reserves. There are conventional players in the south-east locked up. There are unconventional reserves locked up. What I am trying to do with this scheme is say to people you can show the benefits.
What we have got is a framework so you can actually have land that is used for multiple purposes. It can be brought for farming or cattle-intensive or sheep-intensive. Exactly, it can be all forms of activity on that land and to that agricultural resource, a revenue stream from [gas].
Updated
at 1.36am GMT
1.17am GMT1.17am GMT
01:1701:17
Jay Weatherill: if Malcolm Turnbull recovered his memory, our plan would fit with hisJay Weatherill: if Malcolm Turnbull recovered his memory, our plan would fit with his
The premier pulls no punches.The premier pulls no punches.
All I know is that there is no future in coal and the only future is a price on carbon that sends the right investment signals so we can get clean energy generation. We are not seeing that at a national level. That is why SA is taking steps at a state level to implement those measures. Every step that we are taking is still consistent with a return to national cooperation.All I know is that there is no future in coal and the only future is a price on carbon that sends the right investment signals so we can get clean energy generation. We are not seeing that at a national level. That is why SA is taking steps at a state level to implement those measures. Every step that we are taking is still consistent with a return to national cooperation.
If Malcolm Turnbull tomorrow recovered his memory and decided to go for an emissions-intensity scheme, we would be ready to cooperate with him and our scheme would fit perfectly into those arrangements.If Malcolm Turnbull tomorrow recovered his memory and decided to go for an emissions-intensity scheme, we would be ready to cooperate with him and our scheme would fit perfectly into those arrangements.
1.16am GMT1.16am GMT
01:1601:16
Weatherill: only the Oz, the coal lobby and Tony Abbott think coal is the futureWeatherill: only the Oz, the coal lobby and Tony Abbott think coal is the future
Jay Weatherill takes issue that his state government should have changed their energy policies away from renewables when Tony Abbott came to office.Jay Weatherill takes issue that his state government should have changed their energy policies away from renewables when Tony Abbott came to office.
He was wrong, though. Nobody agrees with him … it is only the Australian newspaper, the coal lobby and basically Tony Abbott that still think that coal is the future. There is an international and national and an Australian consensus around there needing to be a price on carbon and it is pretty obvious why you need a price on carbon.He was wrong, though. Nobody agrees with him … it is only the Australian newspaper, the coal lobby and basically Tony Abbott that still think that coal is the future. There is an international and national and an Australian consensus around there needing to be a price on carbon and it is pretty obvious why you need a price on carbon.
UpdatedUpdated
at 1.17am GMTat 1.17am GMT
1.10am GMT1.10am GMT
01:1001:10
Hey Elon, hey Mike, look over here! Open for businessHey Elon, hey Mike, look over here! Open for business
Jay Weatherill surfs the Tweet Tango, dropping in on Malcolm Turnbull.Jay Weatherill surfs the Tweet Tango, dropping in on Malcolm Turnbull.
We will create the jobs and opportunities that come here to SA and to meet that need but it sends a message to the nation and the world that we are open for business of this support for generally. All of the start-ups and entrepreneurs looking for a place to come, that is interested in new ideas, with a government that is prepared to back them in, they will come to SA first.We will create the jobs and opportunities that come here to SA and to meet that need but it sends a message to the nation and the world that we are open for business of this support for generally. All of the start-ups and entrepreneurs looking for a place to come, that is interested in new ideas, with a government that is prepared to back them in, they will come to SA first.
1.08am GMT
01:08
Weatherill is asked if it is a plan to shore up his political future. If I get it right for South Australia, I get it right for our government, says he.
To the extent that strong assertive government dealing with big issue sand getting them right is good politics, of course, the two things follow. It is more profound than politics.
This is a crisis which has emerged in the national electricity market. People expect the SA Government to step up and take control and we are doing that today with this plan. This now provides a foundation for us to create a clean energy future and the jobs of the future. We have been seeing a lot of international excitement about SA’s investment in renewable technology.
1.06am GMT
01:06
Weatherill thumbs nose at fed rhetoric, recommits to 50% renewable energy target
There is so much detail to this press conference so I will continue to highlight the key points and then I promise to double back and pick up more points.
Q: How does the energy security target fit in with the state-based Renewable Energy Target? Does that mean the Renewable Energy Target will be reduced?
No. We are recommitting ourselves to a 50% Renewable Energy Target. We are close to achieving that. We will wait for the latest analysis on where we are with that. The energy security target is a different arrangement which is about essentially incentivising SA power for South Australians on our side of the border. It could mean there will be more secure supply in SA which will allow us to play with our intermittent resources to create a stable system.
1.03am GMT
01:03
For a full story from Max Opray who was in the briefing, here it is:
The South Australian government has announced it will intervene in the national energy market in a $550m plan that seeks to tame the state’s turbulent power supply and prices.
Launching the plan, Premier Jay Weatherill said it is “clear the national energy market is failing the nation, as well as South Australia.
“And this is pretty extraordinary given we are a country that has an abundance of solar, wind and gas resources. For a country of that sort to be facing an energy crisis is a disgrace.”
The six point plan, entitled South Australian Power for South Australians, will be paid for out of recent state government surpluses. It encompasses:
Building of the largest grid-connected battery in Australia to store energy, funded by a new Renewable Technology Fund
Construction of a government-owned 250MW gas-fired power plant to provide emergency back-up power and system stability services for South Australians
Introduction of new ministerial powers to direct the market to operate in the interests of South Australians
Incentivisation of increased gas production to ensure more of the state’s gas is sourced and used in South Australia
Creation of an Energy Security Target to require a proportion of power used within South Australia is generated within the state.
1.01am GMT
01:01
Jay Weatherill says the plan is to avoid blackouts but is careful not to promise never ever.
I can’t guarantee what happens with the weather. If a tree falls on a power line it will black-out a suburb. I can’t guarantee that won’t happen.
He does not say how the state plant will be run or managed.
12.59am GMT
00:59
Where to for the state-owned gas plant?
Some more hints.
Weatherill says the gas plant will be near existing large scale users, “so they are near large transition networks so that power can be put back into the network”.
Murray Bridge is possible but he says lots of regions would be interested in “big infrastructure projects”. Parts of Adelaide, parts of regional SA.
We will be guided by the experts.
He assures South Australian taxpayers they would not have to pay higher taxes for the plan.
They won’t have to pay additional taxes because through prudent management, theTreasurer has ensured there are surpluses across the forward estimates and that will mean that the expense for purchasing this new equipment will be met out of those surpluses.
12.54am GMT
00:54
Weatherill hoping for a new gas plant by summer but it would be a stretch
Jay Weatherill says his expert advice is that electricity prices will drop as a result of more competition.
Regarding the state-owned gas-fired plant, the premier says the state struggles with ageing plant because of lack of investment due to “market failure”.
We have got market failure here. The private sector is either not investing in new generation or not investing in maintaining existing generation. That is why governments need to step up.
He says he is hoping the new gas plant would be in place if possible, before summer.
That is a stretch. We might need temporary generation in the meantime where I would be contracting with SA Power Networks for that purpose. Where? There are a range of sites that the old ETSA had scoped out for potential new gas-fired generation. We will revisit those sites to see whether they are suitable but ultimately it will be a matter for the market approach.
12.50am GMT
00:50
Weatherill is asked, isn’t it a waste of money given we will have a federal policy soon which may blow your plans out?
The premier says he is not holding his breath for the feds.
All of the policies we’re proposing will be complementary to what we understand will be recommended by the chief scientist in the Finkel review. We have no confidence that those changes, at least the fundamental ones, will occur any time soon.
12.48am GMT
00:48
Jay Weatherill: We need to protect ourselves in absence of coherent national policy
Weatherill says gas was always part of the plan.
What has become apparent to us is, in December, when the Prime Minister walked away from an emissions intensity scheme, despite it being recommended by the chief scientist, when we had the extraordinary situation with Pelican Point in February not turning on but instead choosing to black out South Australians, the closure of Hazlewood, all of those factors have led us to the conclusion that we need to step up and take control of our own future, not rely upon anyone else.
We will advocate at a national level for change but we can’t wait for that change. SA is leading. We need to protect ourselves in the meantime before there is some coherent national energy policy emerge at that Federal level.
12.46am GMT
00:46
Weatherill rejects suggestions the government could have bought the Port Augusta coal-fired power station which is closing.
Weatherill said Port Augusta did not offer SA what the state needed.
The premier is asked whether the plan merely sandbags South Australia rather than fixes the system. (Not sure a state premier is in position to do this?)
This is entirely consistent and complementary to our plans to reform the national energy market. The emissions intensity scheme is consistent with the energy security target we have laid out here. We will continue to push at a national level for the emissions intensity scheme, it is entirely consistent.
Updated
at 12.49am GMT
12.42am GMT
00:42
Jay Weatherill says he will replace Victorian coal with gas
This is the SA plan.
The nation’s largest battery storage.
A state-owned gas-powered plant.
Energy minister having local powers over energy market.
A new generation plant using SA’s bulk purchase of energy from the SA government to bring on more competition.
SA gas incentives for exploration, incentives for landowners to make sure that that gas is unlocked.
An energy security target – essentially a state gas reservation.
At its heart, replacing Victorian coal with SA gas. Making sure that SA power is reserved for South Australians. This plan is about our energy future. It is about taking charge of our future.
Updated
at 12.49am GMT