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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)
3.02am GMT
03:02
SA landholders to get 10% royalty stream to open access to land for gas, unconventional or not
Actually, one more thing
I have to bring you more details regarding the royalties for landholders who let gas companies onto develop the resources.
The SA Government is providing $24m for a second round of funding to encourage companies to extract more gas and create more jobs.
This new round will open immediately. The government has committed to give South Australia first dibs on the SA gas.
A new royalties Return Scheme will provide 10 per cent of royalties to landowners whose property overlies a petroleum field which is brought into production.
2.58am GMT
02:58
One more point from Jay Weatherill pushing back against questions that it was the high proportion of renewables that has caused blackouts.
He was asked whether there was a problem with wind generation that has affected the SA market?
There has not been a blackout or disruption to that because of renewable energy. It is not a moot point. It is the accurate point. If you can find me the example where there has been an event that hasn’t been caused by an act of nature ripping out powerlines or doing something else, I am happy to concede the point.
I will now segue to a summary as we have not sighted a single federal minister on this SA energy plan.
2.52am GMT
02:52
Head of gas company AGL:
Strong reform package from @TKoutsantonisMP & @JayWeatherill - recognises role of gas in transition to #renewables & increases reliability
Updated
at 2.52am GMT
2.48am GMT
02:48
The Greens have also criticised Jay Weatherill for chasing gas and not solar thermal at Port Augusta.
Adam Bandt and South Australia, Sarah Hanson-Young welcomed support for battery storage and new rules and powers to provide greater security. But they said embracing more gas power will lock in higher prices and risks creating a state-owned white elephant.
Jay Weatherill has caved into the Turnbull renewables scare campaign by shifting to gas instead of building solar thermal in Port Augusta.
We should have a government-owned solar thermal plant. Instead of a generator dependent on expensive gas, which risks being a white elephant like the South Australian and Victorian desalination plants.
2.37am GMT
02:37
In other news, Mining industry 1, National party 0.
#BREAKING WA Nationals leader Brendon Grylls has conceded defeat in the seat of Pilbara. Labor’s Kevin Michel looks likely to win. #wapol
2.31am GMT
02:31
The Australian Conservation Foundation has welcomed SA’s battery storage investment but panned the gas-fired power station plans, saying the state government would be left with stranded assets.
The ACF says the plan highlights the need for a national energy plan from the federal government, echoing the Climate Institute, echoing the Australian Energy Council.
ACF CEO Kelly O’Shanassy:
The South Australian plan is the result of a desperate situation where the Turnbull government has provided no leadership or direction. The prime minister is incapacitated by an ideological argument over renewable energy and fossil fuels,”
Battery storage, pumped hydro, solar thermal are all available to provide the sort of reliability needed. And they can be combined with much greater energy efficiency and demand management to secure a clean, flexible system.
2.23am GMT2.23am GMT
02:2302:23
Prediction:South Australia's battery storage will have a longer life than One Nation.@gabriellechanPrediction:South Australia's battery storage will have a longer life than One Nation.@gabriellechan
2.19am GMT2.19am GMT
02:1902:19
Without a national plan, states could cause more probs, says Climate InstituteWithout a national plan, states could cause more probs, says Climate Institute
Olivia Kember, head of policy at the Climate Institute has echoed the Australian Energy Council’s comments on the need for a national approach.Olivia Kember, head of policy at the Climate Institute has echoed the Australian Energy Council’s comments on the need for a national approach.
The acute problems in our energy system demand rapid responses, but without a nationally consistent plan there’s a risk that state actions could cause more problems in later years.The acute problems in our energy system demand rapid responses, but without a nationally consistent plan there’s a risk that state actions could cause more problems in later years.
Given the decades-long failure for national energy bodies to cope with the changes underway in the electricity market, it’s understandable that SA is stepping into the vacuum to solve its immediate problems, but it’s not the best way to run an energy system.Given the decades-long failure for national energy bodies to cope with the changes underway in the electricity market, it’s understandable that SA is stepping into the vacuum to solve its immediate problems, but it’s not the best way to run an energy system.
These triage responses to energy crises will keep occurring until we develop a nationally consistent, long-term strategy for our energy system that addresses energy security, affordability and the need to reach net zero emissions before 2050.These triage responses to energy crises will keep occurring until we develop a nationally consistent, long-term strategy for our energy system that addresses energy security, affordability and the need to reach net zero emissions before 2050.
2.14am GMT2.14am GMT
02:1402:14
@gabriellechan This is bigger than just SA & the NEM; a govt is subjugating an established (if failing) market. The floodgates are breached.@gabriellechan This is bigger than just SA & the NEM; a govt is subjugating an established (if failing) market. The floodgates are breached.
2.13am GMT2.13am GMT
02:1302:13
Matt Hatter has joined us for this special blog.Matt Hatter has joined us for this special blog.
@gabriellechan 🔋Hi🔋 Shorter Jay Wetherill: #politicslive pic.twitter.com/BxlO24nJEg@gabriellechan 🔋Hi🔋 Shorter Jay Wetherill: #politicslive pic.twitter.com/BxlO24nJEg
2.12am GMT2.12am GMT
02:1202:12
Lock the Gate, the organisation against “unsafe mining”, is not happy with the plan to pay landholders a revenue stream to access conventional and unconventional gas.Lock the Gate, the organisation against “unsafe mining”, is not happy with the plan to pay landholders a revenue stream to access conventional and unconventional gas.
With 48 communities that have declared themselves Gasfield Free in the Limestone Coast, I'm not sure this will get you anywhere Jay https://t.co/yzMdbDlIvaWith 48 communities that have declared themselves Gasfield Free in the Limestone Coast, I'm not sure this will get you anywhere Jay https://t.co/yzMdbDlIva
But this is also being entertained by the federal government, particularly by Nationals leader Barnaby Joyce who often says the way to solve land access issues is to speak to farmers’ wallets.But this is also being entertained by the federal government, particularly by Nationals leader Barnaby Joyce who often says the way to solve land access issues is to speak to farmers’ wallets.
2.03am GMT2.03am GMT
02:0302:03
Australian Energy Council: Our kingdom for an energy planAustralian Energy Council: Our kingdom for an energy plan
Lastly Matthew Warren of the AEC says, whatever the attributes of the SA plan, hopefully it will kickstart the federal government. In other words, rise off your derriere, Malcolm.Lastly Matthew Warren of the AEC says, whatever the attributes of the SA plan, hopefully it will kickstart the federal government. In other words, rise off your derriere, Malcolm.
Will this kickstart the federal government’s response?Will this kickstart the federal government’s response?
We are all hopeful. We have been asking and the chorus of voices across the economy is agreeing. We need a national plan. We need both major parties to get together and we need certainty. It is no good if we keep running [at] elections and having different plans introduced by different governments. We need this.We are all hopeful. We have been asking and the chorus of voices across the economy is agreeing. We need a national plan. We need both major parties to get together and we need certainty. It is no good if we keep running [at] elections and having different plans introduced by different governments. We need this.
UpdatedUpdated
at 2.12am GMTat 2.12am GMT
1.58am GMT1.58am GMT
01:5801:58
Energy expert: new SA energy powers may conflict with market regulatorEnergy expert: new SA energy powers may conflict with market regulator
Matthew Warren of the Australian Energy Council is also wondering how the new beefed-up ministerial powers will work with the Australian Energy Market Regulator.Matthew Warren of the Australian Energy Council is also wondering how the new beefed-up ministerial powers will work with the Australian Energy Market Regulator.
Warren gets the battery. That is a tick.Warren gets the battery. That is a tick.
He gets the gas contracts. That is a tick.He gets the gas contracts. That is a tick.
But SA probably can’t build a large power station before next summer - more likely the summer after that 2018-19. (I think Weatherill did say it would be a stretch.)But SA probably can’t build a large power station before next summer - more likely the summer after that 2018-19. (I think Weatherill did say it would be a stretch.)
Anything they can do to provide greater firmness to the South Australian grid is welcome. We are concerned about how you would apply two different drivers of the car.Anything they can do to provide greater firmness to the South Australian grid is welcome. We are concerned about how you would apply two different drivers of the car.
If you have the state government intervening and running the grid sometimes and the market operator running the grid. It is like two people driving the car at the same time and we don’t know how that will work.If you have the state government intervening and running the grid sometimes and the market operator running the grid. It is like two people driving the car at the same time and we don’t know how that will work.
UpdatedUpdated
at 2.13am GMTat 2.13am GMT
1.50am GMT1.50am GMT
01:5001:50
The first project to be funded out of SA’s $150m fund will be a grid-connected battery.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. SA says it will be the largest in Australia to provide 100 megawatt-hours of storage.
Not sure if this is the Billionaire’s Battery Pack or not.Not sure if this is the Billionaire’s Battery Pack or not.
Updated
at 2.51am GMT
1.45am GMT1.45am GMT
01:4501:45
Matthew Warren of the Australian Energy Council, representing 21 major electricity and natural gas businesses, says the plan gets the “core reform” right.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.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 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.