"SACOME members require a balanced approach to energy policy reform which is technology neutral and provides affordable, reliable, secure and sustainable energy.”
Access to affordable, secure and reliable sources of energy are vital for the South Australian resources sector to prosper.
The South Australian and national energy markets are undergoing a period of significant change, affecting the reliability of energy deliverables across Australia.
South Australia has the highest penetration of renewable generation in Australia (42.2%) and experiences increased volatility and higher wholesale and retail electricity prices. The retirement of baseload generation in South Australia due to changing market conditions has prompted a reduction of synchronous generation traditionally responsible for frequency control and inertial services critical to the stability and reliability of the network.
South Australia faces a unique challenge in bringing greater reliability of supply to the State market and addressing the price shocks that occur when renewable generation is insufficient.
Gas is a critical component of South Australia’s energy sector and delays or restrictions to developments will negatively impact gas consumers. Gas and electricity generation are inextricably linked with gas-fired generation comprising 50% of the State’s electricity production. A reliable, affordable supply of gas underpins reliable, affordable electricity generation.
A cohesive national energy policy is fundamental to ensuring the reliable, affordable supply of energy to all users. SACOME seeks greater collaboration between the Commonwealth and the States to develop and implement policy settings that facilitate the supply of affordable, reliable energy.
Policies such as the National Energy Guarantee and Finkel Review recommendations demonstrate a welcome shift toward national coordination of energy policy. SACOME submits that such policies should be technology neutral and that climate policy targets operating under such frameworks should operate in line with international policies incorporating market-based mechanisms.