ourenergyplan

ENERGY SECURITY
TARGET

Goal: Create new investment in cleaner energy to increase competition, put downward pressure on prices and provide more energy system stability.

A new target will require energy retailers to get more electricity from cleaner generators that produce their electricity using South Australia’s abundant natural resources.

In a move to increase South Australia’s energy self-sufficiency, retailers will be compelled to source a percentage of energy from local generators rather than from Victorian coal through the interconnector.

The energy security target is modelled by Frontier Economics. Similar schemes have worked around the country to lower energy prices and stimulate exploration investment.

South Australia is rich in energy producing resources, including gas, solar, wind, biomass and graphite, which is used for batteries.

Analysis by Frontier Economics shows that new investment generated by the energy security target will create more competition and put downward pressure on prices.

South Australia has advocated for a national Emissions Intensity Scheme (EIS) to incentivise investment in cleaner generation. This scheme is not supported by the Federal Government, despite widespread industry and scientific support.

South Australia’s energy security target will transition to an EIS or Lower Emissions Target (LET) if or when national policy changes in the future.

LATEST NEWS - June 10, 2017
Start date of Energy Security Target revised


The State Government has decided to delay the start date of the Energy Security Target to 1 January 2018, while clarity is sought on the Federal Government’s response to the Finkel Review.

A delayed start date was also requested in a number of submissions from industry during the consultation process to allow them further time to prepare.


The Energy Security Target was announced as part of the State Government’s $550 million energy plan in March. The target will boost energy security and increase local competition by requiring energy retailers to source more electricity from South Australian generators rather than through the interconnector to Victoria.

The Target, which was initially proposed to be introduced on 1 July 2017, will incentivise clean, dispatchable local electricity generation that also contributes to the security of the South Australia’s power system.