Renewables, Solar, Wind
South Australia has secured federal financial backing, solidifying its position as the world’s first non-hydro grid to achieve 100% net renewable energy.
Federal Funding Underpins Renewable Energy Transformation
The Renewable Energy Transformation Agreement guarantees federal support for a minimum of one gigawatt of new wind and solar generation capacity, along with 400 MW (1,600 MWh) of storage. This ensures the state meets its ambitious 2027 target of 100% net renewables.
Already a global leader, South Australia boasts a wind and solar share of approximately 70% over the past year. The addition of new capacity, coupled with the Project Energy Connect transmission link from NSW, propels the state to become the first globally to reach 100% net renewables primarily through wind and solar.
Net Renewables: A Milestone Achievement
While not constantly powered by wind and solar, the annual amount of generated and stored renewable energy will equal annual consumption. Excess power will be exported, imports will balance demand, and existing gas plants will address any supply gaps.
Achieving this milestone is significant for both South Australia and renewable energy advocates, especially as some continue to question the feasibility of powering modern economies with renewables and storage.
Bipartisan Support for Renewable Goals
The 100% net renewables target was initially set by the state’s Liberal government, and the Labor government subsequently accelerated the timeline from 2030 to 2027.
State energy minister Tom Koutsantonis welcomed the agreement, emphasizing the state’s commitment to collaborating with the Commonwealth to establish a secure grid, supporting the power needs of households and businesses.
Expanding Renewable Capacity and Storage
South Australia hasn’t added new wind or solar projects for two years, but the 412 MW Goyder South wind farm is about to connect. Several battery projects are also under construction or awaiting commissioning.
The world’s first green hydrogen power plant is being built in Whyalla, accompanied by a 250 MW electrolyser and storage facilities. The state is also receiving substantial inquiries from industries seeking zero-emissions and cost-effective green energy.
Federal Capacity Investment Scheme and Bilateral Agreements
Federal energy and climate minister Chris Bowen highlighted that South Australia is the first state to secure funding under the Capacity Investment Scheme (CIS), designed to contract 32GW of renewable generation and storage nationwide.
Bowen emphasized that increased renewable energy in the grid lowers energy bills due to its affordability. The bilateral agreements aim to address barriers in delivering renewable projects and replace aging infrastructure.
Reliable Renewables Plan vs. Nuclear Proposal
The government’s Reliable Renewables Plan is supported by experts for delivering clean, affordable, and reliable energy, contrasting with an uncosted and unexplained anti-renewables nuclear proposal.
As part of the agreement, South Australia will establish its own grid reliability mechanism and benchmark, replacing the national framework. The state will identify and deliver projects maintaining reliability to that standard.
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