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SA to spend $500m on Australia's largest battery storage and gas-fired power plant – as it happened SA to spend $500m on Australia's largest battery storage and gas-fired power plant – as it happened
(35 minutes later)
3.24am GMT3.24am GMT
03:2403:24
What you need to know about the SA energy planWhat you need to know about the SA energy plan
The main points of Jay Weatherill’s energy plan. The main points of Jay Weatherill’s energy plan:
Building of the largest grid-connected battery in Australia to store energy, funded by a new renewable technology fund 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 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 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 Incentivisation of increased gas production to ensure more of the state’s gas is sourced and used in South Australia.
10% royalty stream for landholders for access to conventional and non conventional gas reserves, 10% royalty stream for landholders for access to conventional and non conventional gas reserves.
Creation of an energy security target to require a proportion of power used within South Australia is generated within the state.Creation of an energy security target to require a proportion of power used within South Australia is generated within the state.
The reaction:The reaction:
Australian Energy Council says at its core, it is a good plan but now the federal government needs to have a national plan. Matthew Warren also foresees a few problems over the ministerial power to intervene with the Australian Energy Market Operator. The Australian Energy Council says at its core, it is a good plan but now the federal government needs to have a national plan. Matthew Warren also foresees a few problems over the ministerial power to intervene with the Australian Energy Market Operator.
Greens groups and the Greens party is disappointed at the plan’s reliance on gas but they like the battery storage and grants for renewables. Greens members Adam Bandt and Sarah Hanson Young were hoping for assistance for solar thermal in Port Augusta to transition a coal town to solar. Greens groups and the Greens party are disappointed at the plan’s reliance on gas but they like the battery storage and grants for renewables. Greens members Adam Bandt and Sarah Hanson Young were hoping for assistance for solar thermal in Port Augusta to transition a coal town to solar.
Remember the federal government spent the summer and the blackouts giving the SA government a bollocking on their high renewable energy target of 50%? Weatherill recommitted to that target today and said his plan would fit with the objectives of the chief scientist Alan Finkel who originally favoured an emissions intensity scheme (carbon price). The premier also favours an EIS. Remember the federal government spent the summer responding to the blackouts giving the SA government a bollocking on their high renewable energy target of 50%? Weatherill recommitted to that target today and said his plan would fit with the objectives of the chief scientist, Alan Finkel, who originally favoured an emissions intensity scheme (carbon price). The premier also favours an EIS.
Weatherill said: “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.” Weatherill said: “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.”
No federal Coalition ministers have been sighted on this plan.No federal Coalition ministers have been sighted on this plan.
Thanks for your company.Thanks for your company.
See you back here next week for the parliamentary sitting.See you back here next week for the parliamentary sitting.
Good afternoon.Good afternoon.
Updated
at 3.44am GMT
3.08am GMT3.08am GMT
03:0803:08
And on the SA Energy Security Target, South Australian energy retailers will have to get electricity from cleaner generators that produce their electricity using South Australia’s natural resources. And on the SA energy security target, South Australian energy retailers will have to get electricity from cleaner generators that produce their electricity using South Australia’s natural resources.
Retailers will be compelled to source a percentage of energy from local generators rather than from Victorian coal through the interconnector.Retailers will be compelled to source a percentage of energy from local generators rather than from Victorian coal through the interconnector.
Updated
at 3.42am GMT
3.02am GMT3.02am GMT
03:0203:02
SA landholders to get 10% royalty stream to open access to land for gas, unconventional or notSA landholders to get 10% royalty stream to open access to land for gas, unconventional or not
Actually, one more thingActually, one more thing
I have to bring you more details regarding the royalties for landholders who let gas companies onto develop the resources. I have to bring you more details regarding the royalties for landholders who let gas companies on to 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. 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.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. A new royalties return scheme will provide 10% of royalties to landowners whose property overlies a petroleum field which is brought into production.
Updated
at 3.41am GMT
2.58am GMT2.58am GMT
02:5802:58
One more point from Jay Weatherill pushing back against questions that it was the high proportion of renewables that has caused blackouts.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?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.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.I will now segue to a summary as we have not sighted a single federal minister on this SA energy plan.
2.52am GMT2.52am GMT
02:5202:52
Head of gas company AGL:Head of gas company AGL:
Strong reform package from @TKoutsantonisMP & @JayWeatherill - recognises role of gas in transition to #renewables & increases reliabilityStrong reform package from @TKoutsantonisMP & @JayWeatherill - recognises role of gas in transition to #renewables & increases reliability
UpdatedUpdated
at 2.52am GMTat 2.52am GMT
2.48am GMT2.48am GMT
02:4802:48
The Greens have also criticised Jay Weatherill for chasing gas and not solar thermal at Port Augusta.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. Adam Bandt and South Australia senator Sarah Hanson-Young welcomed support for battery storage and new rules and powers to provide greater security. But they said embracing more gas power would lock in higher prices and risk 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.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.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.
Updated
at 3.40am GMT
2.37am GMT2.37am GMT
02:3702:37
In other news, Mining industry 1, National party 0.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#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 GMT2.31am GMT
02:3102:31
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 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.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: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,”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.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 megawatt-hours 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.
UpdatedUpdated
at 2.51am GMTat 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.