Feds Ink $1bn Energy Deal With South Australia
The Federal Government has struck an energy deal with South Australia worth more than $1 billion. The $1.08 billion deal is designed to provide cheaper and more reliable energy to South Australians and the increased use of gas.
The deal appears certain to draw fire from the Greens and other critics of Canberra’s renewable energy credentials.
The deal will hopefully also kick-start work on a new interconnector between South Australia and New South Wales, and provide funding for emissions-reduction projects, including hydrogen.
The Commonwealth will contribute $660 million, while South Australia will stump up $422 million with investments in technologies aimed at reducing emissions, including hydrogen and carbon capture-and-storage.
The Federal Government has also committed $50 million to the electricity interconnector, while $110 million will be allocated to concessional finance for energy storage projects, including the use of solar thermal technology.
South Australia’s Minister for Energy and Mining, Dan van Holst, said that the joint commitment to develop hydrogen hubs in South Australia is a strong sign to global partners in Asia and Europe that South Australia can lead the nation in this new industry.
Premier Steven Marshall said that it would also deliver the infrastructure needed for electric cars and generate new revenue for farmers from carbon reductions.
The Federal Government has come under attack for pushing ahead with its plan to increase the amount of gas in Australia’s energy system.