SA power: Opposition questions electricity funding 'reserves'
Updated
The South Australian Opposition has called on the State Government to reveal exactly how it will pay for its $550 million plan to secure the state's power supply.
The Government plans to have a grid-sized battery with a capacity of up to 150MW in operation by next summer, while the planned construction of a $360 million, 250MW gas-fired power plant is at least 18 months away.
It is also in discussions with SA Power Networks about sourcing 200MW of back-up power through diesel-generators to help keep the lights on next summer.
What's happening with power?
- The government will build, own and operate a new $360 million, 250-megawatt gas-fired power plant
- Australia's largest battery will be built before next summer, by the private sector, and be funded from a $150 million renewable technology fund
- SA's energy minister will have the power to order a generator to be switched on if more supply is needed (a power held by the AEMO)
- A doubling of an already announced scheme to incentivise new gas supply for local generation
- Land owners to receive 10% of state royalties generated from gas wells on their properties
- There's a plan to supply "coal-rich" states with power generated in SA
Premier Jay Weatherill has previously said the cost of the back-up generators was included in its $550 million intervention of the electricity market, which the Government said it would pay for out of budget surpluses.
But Deputy Opposition Leader Vickie Chapman said she wanted more detail about where the Government would source more than half a billion dollars.
"To simply say we will fund these costs in forward surpluses is a nonsense because we all know they are fake surpluses funded by the sale of assets," she said.
She also questioned whether the full cost of the diesel back-up generators had been factored in.
"Tasmania's experience is a $50 million per season cost to operate diesel generators," Ms Chapman said.
"With add-on costs, that's up to $64 million."
Treasurer Tom Koutsantonis said the temporary generators were also included in the overall cost of the plan, which the Government planned to pay from its "reserves".
"That's why there will be no new taxes, no increase in taxes to pay for this, no increase in any levy to pay for this," he said.
"This is all coming out of the Government reserves that we put away for a rainy day."
Topics: electricity-energy-and-utilities, solar-energy, alternative-energy, government-and-politics, states-and-territories, programs-and-initiatives, environment, adelaide-5000, sa
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