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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)
1.17am GMT
01:17
Jay Weatherill: if Malcolm Turnbull recovered his memory, our plan would fit with his
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.
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 GMT
01:16
Weatherill: 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.
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.
Updated
at 1.17am GMT
1.10am GMT
01:10
Hey Elon, hey Mike, look over here! Open for business
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.
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 GMT12.42am GMT
00:4200:42
Jay Weatherill says he will replace Victorian coal with gasJay Weatherill says he will replace Victorian coal with gas
This is the SA plan.This is the SA plan.
The nation’s largest battery storage.The nation’s largest battery storage.
A state owned gas-powered plant. A state-owned gas-powered plant.
Energy minister having local powers over energy market.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.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.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. 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.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.
12.37am GMT
00:37
Jay Weatherill: national electricity market chose to blackout state
The SA premier is speaking now:
We have a national electricity market which is failing not only SA but failing the nation. This extraordinary state of affairs,where our abundant solar, wind and gas resources leads this nation into an energy crisis. If there was anymore powerful indication of a broken national electricity market, it was the events of February 8. On that occasion, we had a private national electricity market that chose to black-out South Australians rather than turn on a power station. This is a totally unacceptable state of affairs. That is why SA needs to step up and take control of its energy future. They expect me to stand up and make sure that SA is self reliant, SA relying less on the eastern States for its energy security. That is what SA’s plan for energy is all about.
12.35am GMT
00:35
ABC report: SA to build battery storage and government owned gas fired power plant
Early reports in the first minutes after the briefing.
As part of a $500m package:
Building battery storage,
A new SA government-owned gas-fired power plant,
New significant ministerial powers.
12.30am GMT
00:30
Ross Garnaut: In the world of Trump, nothing is real until you tweet
The other energy story that continues to grab attention is the Billionaire Tweet Tango, between Tesla co-founder Elon Musk, Atlassian co-founder Mike Cannon-Brookes and Malcolm Turnbull to find battery storage solutions for South Australia.
The SA government’s policy will most certainly reference storage solutions, given the problem is not producing enough energy but storing it for high-demand times.
The Tweet Tango has put a few local noses out of joint, namely Ross Garnaut, Zen Energy chair, noted economist, Hawke adviser and author of the original climate change report.
Garnaut remarked on the way policy development is done these days to my colleague Melissa Davey.
Malcolm Turnbull should encourage Australia’s battery energy storage industry now he has “taken interest in the tweets of an American billionaire”, Zen Energy chairman Ross Garnaut says.
Garnaut was referring to Elon Musk, the billionaire co-founder of electric car giant Tesla, who tweeted that Tesla could solve the power shortage issue causing price spikes and blackouts in South Australia within 100 days by installing 100-300 megawatt hours of battery storage.
Turnbull subsequently tweeted that he had phoned Musk and enjoyed a “great, in-depth” conversation.
But Australian companies had been working on large battery projects for years, Garnaut said, including one by Zen Energy in the upper gulf of South Australia which it had discussed with the market.
The core of the project would be to supply baseload renewable power to large energy users, initially in South Australia and then more broadly, Garnaut said.
“In this Trump era, we have a world where nothing is real until an American billionaire tweets about it,” Garnaut said.
“What we’re working on is having it ready for summer, the time of greatest stress on the grid and that’s when you really need to bring all your grid to stability.
“Zen Energy has funded it all so far, and there has been a lot of technical work and economic modelling done to see what is required in the market. We have a lot of close relations with energy providers and communities as part of the development work. When it comes to investment in the large equipment, we have the support of external investors.”
UpdatedUpdated
at 12.33am GMT at 12.49am GMT
12.20am GMT
00:20
The Financial Review reports SA could use long-term power contracts:
The measures to tackle SA’s deterioration in energy supply security sharpen attention on the large volumes of gas being sucked north from South Australia and Victoria by the three Queensland LNG export projects built for a combined cost of $80bn that are still ramping up to full production.
The South Australian government is also set to use a new long-term power contract for 75% of its own agencies’ electricity needs as a driver of more competition in electricity supply in the state, and is also likely to bring in more incentives to accelerate the extraction of gas out of the ground by companies.
Updated
at 12.30am GMT
12.09am GMT
00:09
Bill Shorten: an electricity market should work for customers, not large private companies
Bill Shorten also commented on the concentration of big players in the energy markets and its effect on competition.
We need to make sure that the market for electricity prices is working as it should. Where you have too much concentration or in other words too few energy suppliers, too little competition in terms of the transmission businesses, then what we see is the private providers taking a larger share of profit and as a result industry and consumers paying more. So it is important that if we are to have a market for electricity generation in Australia, that it is working in the interests of the customers and not the large private companies who have a relatively high share of market control, which forces up prices.
Updated
at 12.30am GMT
12.04am GMT
00:04
AAP reports:
The lights went out at Adele’s Adelaide concert – but it wasn’t due to the state’s energy woes.
The UK star made fun of what she called a technical difficulty when her stage was plunged into darkness.
“So, we are having a technical difficulty. I’m not quite sure what it is,” she told concert goers according to footage released online.
It’s believed power was cut to the rotating stage at Adelaide Oval after a cord was accidentally unplugged.
But that didn’t stop the audience from having a few jokes at South Australia’s expense.
“What a welcome to her from the blackout state of Australia,” one person tweeted on Monday night.
⚡🎙️"Hello from the dark side... " Note: batteries not solution for all SA blackouts! https://t.co/lSznuUmEyF
Updated
at 12.31am GMT
12.02am GMT
00:02
Bill Shorten previews the SA energy plan, saying it will make sure “there is proper supplies of gas”.
I think Mr Turnbull needs to work with the South Australian government rather than attack them because Australian industry, Australian consumers, Australian gas suppliers need national certainty. The Grattan Insitute has said that the lack of national policy certainty in energy is the greatest factor driving up electricity prices at the moment. Jay Weatherill is acting.
11.58pm GMT
23:58
Shorten: good to see Turnbull talking renewable energy after he mocked it with lumps of coal
Bill Shorten is speaking now and has been asked about energy policy.
What we need is a recognition that there is a national energy crisis. What we see is a combination of factors, in particular we are seeing a lot of the gas, which is domestically produced in Australia being shipped off on overseas contracts.
I think it is important that we have a proper supply of gas to Australian business and Australian households. We have waited for Mr Turnbull to do something. To be fair, this week he is talking to some of the entrepreneurs about renewable energy battery storage, I welcome that. A couple of weeks ago in parliament he was mocking renewable energy and playing with lumps of coal in parliament as if it was some sort of show and tell time at primary school.
11.55pm GMT
23:55
A quick note, I forgot the 30-minute time difference. So the South Australian government will reveal details at 11.30am if you are in the eastern states or 9am WA time.
Updated
at 12.32am GMT
11.37pm GMT
23:37
Weatherill says people believe energy is essential and think government should run it
Good morning blogans,
#Politicslive is back for a guest appearance to talk energy policy as the South Australian government rolls out its much-vaunted plans to solve that state’s looming crisis.
As it happened, last night’s storms across central and northern New South Wales gave me a taste of South Australian life at twilight. The power went down, flickered and then went out after a lightning strike to our lines that made me drop the sauce bottle.
But the nation is facing more serious problems than my lightning strike. Australia is finally coming to the pointy end of the lack of energy planning over the past decade.
This week political debate has reached peak energy mode. Consider the list of events, reports and dire predictions in the past week.
While our colleague Max Opray is in the lock up in South Australia, the Adelaide Advertiser is reporting that the South Australian government has “closely considered” the option of new interconnectors between Adelaide and the eastern states and it has also been urged to buy its own power station.
The Advertiser’s Peter Jean reported last year that:
A new electricity interconnector between South Australia and the eastern states could be operational by 2021 and would cost between $500 million and $2.5 billion, power network operator ElectraNet says.
A government buying a new power station sounds like a radical solution but it should be noted that Weatherill and his energy minister Tom Koutsantonis have not ruled out any options - including a state based carbon price. Jean reports:
People believe that energy is such an essential service that they think the government should still be running it but, if they’re not, it has to be in charge,” he told The Advertiser.
That’s really what this is about, taking charge. The objective is obviously to make our power supply more reliable (and) to put downward pressure on prices, but the other element which is really critical is the jobs question.
It’s a really exciting opportunity to source, generate and control more of our power here in SA.
So stick with us as we trip the light fantastic and hopefully don’t throw out the fuse. The puns are endless really. I will take all suggestions, in the box (thread) below, on the Twits @gabriellechan and Facebook. We’re cooking with gas.
Updated
at 11.49pm GMT