The South Australian (SA) State Government has announced measures to increase energy market competition, drive down costs for businesses and consumers and reduce carbon emissions.
The Government will launch a tender to procure 75 per cent of its long term electricity needs, aimed at introducing a new competitor into the energy market, increasing competition.
“The small number of energy suppliers in South Australia have too much power – if we increase competition, we will put the power back into the hands of consumers,” said SA Premier Jay Weatherill.
“Increasing competition in the energy market is the best way to drive down power prices for South Australian households and businesses.”
The Government will also commit $24million towards a program to incentivise companies to extract more gas and supply it to the local market.
This will increase the supply of gas into the energy market, with South Australian energy generators, industry and households having first offering.
An Emissions Intensity Scheme which trades credits between energy companies will be explored at a national level, with further modelling to be undertaken over the coming months.
APPEA Director South Australia/Northern Territory Matthew Doman said the $24 million incentive scheme was another example of the state government’s strong leadership on natural resource development.
“This is a good policy for South Australia that will help ensure a stable and reliable supply of natural gas to meet the energy needs of local businesses and households,” said Mr Doman.
“It’s encouraging to see a government delivering constructive policies, rather than destructive policies such as moratoriums and blanket bans being embraced elsewhere.
“This will only enhance South Australia’s reputation as an attractive and supportive destination for natural gas investment.”
Mr Doman beleives a reliable and affordable supply of natural gas was critical in helping South Australia transition to a cleaner energy future.
“Modelling released last week by the Climate Change Authority showed that under a range of policy scenarios, gas will need to play a bigger role in electricity generation if Australia is to achieve its emissions reduction targets.
“The fact remains that gas-fired generation is essential to reliable electricity supply – its rapid response technology is the natural complement to intermittent renewable energy.”