The South Australian Government and the Australian Government have signed a $1.08 billion State Energy and Emissions Reduction Deal that will help deliver more gas to support South Australia’s renewable energy assets and alleviate a potential shortfall on the east coast.
Under the bilateral deal the Australian Government will contribute $660 million and South Australia $422 million to pursue initiatives that will create new jobs and help Australia meet our emissions reduction targets to address climate change.
The South Australian Government will pledge to unlock new gas reserves to support the increase in renewable solar and wind power coming into the electricity system and help with the potential east coast gas shortage. The increase in supply will help South Australia meet its own needs and assist in preventing shortfalls in the east coast gas market.
The agreement will contribute to South Australia achieving 100 per cent renewables by 2030 and becoming an exporter of renewables and gas to support the national electricity market and provide more jobs in SA’s energy sector.
Key components of the deal include:
- $400 million in Commonwealth funding for investment in emission reduction projects in South Australia including carbon capture and storage, electric vehicles and hydrogen
- Up to $100 million joint support for Project EnergyConnect to boost the flow of power between South Australia and New South Wales
- Up to $110 million in Australian Government concessional finance for solar thermal and other storage projects in South Australia
- South Australia to increase the supply of reliable and affordable gas to users in SA and the broader east coast gas market with targets for end of 2023 and by 2030
Read more about the Energy and Emissions Reduction Agreement with South Australia on the Prime Minister of Australia’s website (https://www.pm.gov.au/media/energy-and-emissions-reduction-agreement-south-australia).
18 April 2021
