South Australia: $550m Battery Storage and Gas Plant Plan
Source: The Guardian 14/3/2017
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.
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.
The new gas-fired power plant is budgeted to cost $360m, $150m will be committed to the SA Renewable Technology Fund - broken up into $75m in grants and $75m in loans - and new Plan for Accelerating Exploration (Pace) grants to incentivise new gas production are worth $24 million.
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