Energy Action Critical
The South Australian Chamber of Mines and Energy (SACOME) welcomes the measures announced today by the South Australian Government aimed at reducing electricity prices.
SACOME Chief Executive, Jason Kuchel said “The proposed $24 million to incentivise gas production is welcome, particularly in an environment of increasing production costs and low oil prices that have negatively impacted gas exploration and production.”
“This constructive policy is aimed at increasing gas production and encouraging innovation to reduce gas production costs. Lower cost and more plentiful gas will directly benefit all gas users and indirectly benefit all electricity users.”
Electricity generation powered by gas is a relatively low emission, rapid response, baseload power option, and crucial to fill the gaps from intermittent wind and solar electricity generation.
“We look forward to discussing the detail of this critical incentive with the State Government.” Mr Kuchel said.
A recent analysis by Credit Suisse highlighted that the Eastern Australia gas market, which supplies South Australia, will face significant supply shortfalls between 2019 and 2020. With the Victorian government’s decision to ban gas production likely to place further stress on supply in coming years, this strategic decision by the State government has come at the right time.
“Now is also the time for the Federal Government to commit to sealing the Strzelecki Track,” Mr Kuchel added.
“Both the State Government and industry have long lobbied to improve this critical route into the Cooper Basin as an obvious way to reduce gas prices permanently whilst helping the agricultural, tourism and freight industries,” he said.
The State government’s measure to increase competition in the electricity market through a tender of 75% of its electricity needs and the progression of regulatory tests for a SA-NSW interconnector has potential to add much needed competition into the South Australian electricity market.
These announcements are welcome; however there is no doubt we still have a problem in the short term and other measures must be considered urgently.” said Mr Kuchel.
“For our members, electricity system security, reliability, and competitive wholesale prices are critical to ensure their businesses are globally competitive. Changes to energy market rules and regulations has the potential to ensure we meet global emissions targets while remaining globally competitive.”
The South Australian Chamber of Mines and Energy (SACOME) welcomes the measures announced today by the South Australian Government aimed at reducing electricity prices.
SACOME Chief Executive, Jason Kuchel said “The proposed $24 million to incentivise gas production is welcome, particularly in an environment of increasing production costs and low oil prices that have negatively impacted gas exploration and production.”
“This constructive policy is aimed at increasing gas production and encouraging innovation to reduce gas production costs. Lower cost and more plentiful gas will directly benefit all gas users and indirectly benefit all electricity users.”
Electricity generation powered by gas is a relatively low emission, rapid response, baseload power option, and crucial to fill the gaps from intermittent wind and solar electricity generation.
“We look forward to discussing the detail of this critical incentive with the State Government.” Mr Kuchel said.
A recent analysis by Credit Suisse highlighted that the Eastern Australia gas market, which supplies South Australia, will face significant supply shortfalls between 2019 and 2020. With the Victorian government’s decision to ban gas production likely to place further stress on supply in coming years, this strategic decision by the State government has come at the right time.
“Now is also the time for the Federal Government to commit to sealing the Strzelecki Track,” Mr Kuchel added.
“Both the State Government and industry have long lobbied to improve this critical route into the Cooper Basin as an obvious way to reduce gas prices permanently whilst helping the agricultural, tourism and freight industries,” he said.
The State government’s measure to increase competition in the electricity market through a tender of 75% of its electricity needs and the progression of regulatory tests for a SA-NSW interconnector has potential to add much needed competition into the South Australian electricity market.
These announcements are welcome; however there is no doubt we still have a problem in the short term and other measures must be considered urgently.” said Mr Kuchel.
“For our members, electricity system security, reliability, and competitive wholesale prices are critical to ensure their businesses are globally competitive. Changes to energy market rules and regulations has the potential to ensure we meet global emissions targets while remaining globally competitive.”