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.
Enter your details to subscribe to the mailing list of ourenergyplan.sa.gov.au
You will receive information on important energy policy initiatives and announcements.