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SA signs deal to push gas production over ample renewables

April 19, 2021

PV Magazine:

In a $1 billion-plus so-called State Energy and Emissions Reduction Deal between the Commonwealth Government (contributing $660 million) and the South Australian Government (contributing $422 million), announced on the weekend, Prime Minister Scott Morrison and Energy Minister Angus Taylor blew a very loud trumpet for gas extraction, “to help increase the supply of reliable and affordable gas to users in South Australia and the broader east coast market”. But a number of urgently needed, renewable-energy-boosting projects also got a leg up.

The parties to the deal agreed on $100 million of joint support for Project EnergyConnect, a superhighway of new electricity transmission infrastructure connecting South Australia and New South Wales, with a diversion into Victoria, which promises to unlock gigawatts of planned renewable energy projects in its path, and help stabilise the tail end of the National Electricity Market, facilitating bi-directional energy flows as needed.

Tim Buckley, Director of Energy Finance Studies at the Institute for Energy Economics and Financial Analysis (IEEFA) in Australia and South Asia, commented last week that, “Conventional or ‘natural’ gas use in Australia’s National Electricity Market has fallen 59% in the last five years due to massive overpricing and supply concerns, while renewable energy has grown strongly.” 

[Natalie Filatoff]

More: SA’s $1.08 billion deal with the Feds to produce more gas!

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