{"id":20038,"date":"2018-03-19T09:46:24","date_gmt":"2018-03-18T23:16:24","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=20038"},"modified":"2018-03-20T19:58:49","modified_gmt":"2018-03-20T09:28:49","slug":"sa-election-renewable-energy","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/sa-election-renewable-energy\/","title":{"rendered":"What Does The Liberal Win Mean For Clean Energy in SA?"},"content":{"rendered":"<div id=\"attachment_20110\" style=\"width: 1610px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-20110\" class=\"wp-image-20110 size-full\" src=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/03\/sa-result.jpg\" alt=\"marshall and weatherill - renewable energy in SA\" width=\"1600\" height=\"800\" srcset=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/03\/sa-result.jpg 1600w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/03\/sa-result-300x150.jpg 300w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/03\/sa-result-768x384.jpg 768w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/03\/sa-result-1024x512.jpg 1024w\" sizes=\"(max-width: 1600px) 100vw, 1600px\" \/><p id=\"caption-attachment-20110\" class=\"wp-caption-text\">Labor&#8217;s Jay Weatherill is out. The Liberal&#8217;s Steven Marshall is in. What does this mean for the future of renewable energy in South Australia?<\/p><\/div>\n<p>The South Australian Liberals have won the election.\u00a0 The results seemed clear on Saturday night and are looking very definite now on Monday morning.\u00a0 They have a small but clear majority allowing them to govern in their own right.\u00a0 Now that the power is theirs, will solar and wind continue to expand in South Australia or will Premier Marshall peel off his face to reveal he is Mecha-Abbott underneath and set about destroying the renewable energy industry in South Australia?<!--more--><\/p>\n<div class=\"youtube-wrapper\"><iframe title=\"He-Man - &quot;I Have The Power!&quot;\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/NHZF1Dy13to?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<p>The good news is the SA Liberals are not the same as the Federal Coalition and so, fingers crossed, we shouldn&#8217;t see the same renewable bashing behavior we saw under Abbott and which has continued with Turnbull.\u00a0 It simply won&#8217;t benefit the state or the SA Liberals to attack renewables.\u00a0 It will not cause coal to become environmentally friendly or make nuclear power pay for itself.\u00a0 This doesn&#8217;t mean they won&#8217;t bash renewables. \u00a0But hopefully self interest will keep them from doing anything too stupid.<\/p>\n<p>So what will SA Liberals do?\u00a0 Well, I find what people say they will do is a pretty good predictor of future behavior, both in real life and politics.\u00a0 This means the state is likely to end up with:<\/p>\n<ul>\n<li>An interconnector with NSW that will cost at least half a billion dollars all up.<\/li>\n<li>$100 million in home battery subsidies at around $2,500 a home.<\/li>\n<li>$50 million in grid battery subsides.<\/li>\n<\/ul>\n<p>The good news is there has been no mention of a return to coal power, but they do say they are going to expand natural gas production in the state.\u00a0 I have no idea how much money they are planning to sink into this, but Australia already produces far more natural gas than it consumes, so any extra production is just going to be exported overseas.\u00a0 Hopefully the Liberals will realize it doesn&#8217;t make any sense to spend Australian money to subsidize the cost of natural gas in Japan.<\/p>\n<h2>The SA Liberals Are Not The Federal Coalition<\/h2>\n<p>The Federal Coalition is dominated by members of Parliament from the three most populous states &#8212; NSW, Victoria, and Queensland.\u00a0 Each of those states mines and burns a lot of coal.\u00a0 Australia is the largest exporter of coal in the world.\u00a0 Indonesia had us beat for a long time, but we appear to have pulled ahead<sup class='endnote'><a href='https:\/\/www.solarquotes.com.au\/blog\/sa-election-renewable-energy\/#en-20038-1' id='enref-20038-1' onclick='return hhEndnotes_show(20038)'>1<\/a><\/sup>.\u00a0 At the moment Australian coal exports are a $30 billion industry.\u00a0 But in a few months it could be a $15 billion industry.\u00a0 It&#8217;s not the most stable of commodities.<\/p>\n<p>But South Australia has no coal industry.\u00a0 Low quality coal used to be mined at Leigh Creek but that was closed down, along with coal generation in the state, <a href=\"https:\/\/www.solarquotes.com.au\/blog\/coal-power-eliminated-south-australia-help-rooftop-solar\/\">two years ago<\/a>.\u00a0 This means there are no coal companies to appease and no coal jobs to protect.\u00a0 While there are natural gas producers, they get paid the same if gas is sold here or overseas, so they should be mostly indifferent about expanding renewable energy cutting gas consumption in Australia.\u00a0 When Turnbull&#8217;s <a href=\"https:\/\/www.solarquotes.com.au\/blog\/turnbull-gas-prices\/\">interference in domestic gas markets<\/a> starts to bite they may actually have an incentive to promote renewables to decrease domestic gas consumption, as they will be able to make more money selling it overseas.\u00a0 However, gas generators won&#8217;t be quite so sanguine.<\/p>\n<p>Of course, just because there is no there&#8217;s no strong incentive for fossil fuel producers to warp policy doesn&#8217;t mean the SA Liberals won&#8217;t get in the way of renewable development.\u00a0 After all, the Federal Coalition&#8217;s opposition to renewable energy doesn&#8217;t make a lot of sense either.\u00a0 They had enough political power to arrange for coal interests to be paid to close down mines and power stations but instead chose to oppose renewables instead.\u00a0 I think that sometimes people just like to fight.<\/p>\n<div id=\"attachment_20101\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-20101\" class=\"wp-image-20101 size-full\" src=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/03\/abbottzilla.jpg\" alt=\"Is Steven Marshall Mecha-Abbott?\" width=\"600\" height=\"351\" srcset=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/03\/abbottzilla.jpg 600w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/03\/abbottzilla-300x176.jpg 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><p id=\"caption-attachment-20101\" class=\"wp-caption-text\">Mecha-Abbott looks a little like this, except not quite so pretty.<\/p><\/div>\n<p>The SA Liberals will have no strong reason to support fossil fuels and lots of reasons to support renewables.\u00a0 Trying to hold back renewable development is likely to maintain high electricity prices and reduce investment in the state.\u00a0 So unless we are very unlucky, this should be a pro-renewable Liberal state government.<\/p>\n<h2>The NSW Interconnector<\/h2>\n<p>The SA Liberals appear determined to build an interconnector with NSW.\u00a0 This is likely to cost at least half a billion dollars with the expense shared between the two states.\u00a0 The new interconnector would allow South Australia to import mostly coal generated electricity from NSW and export mostly renewable generated electricity to NSW.\u00a0 This will slightly lower the cost of electricity in both states but won&#8217;t be cheap to build.\u00a0 The Liberals say it&#8217;s worth it and they must be very confident of this because they are spending $150 million dollars to subsidise battery storage, which will reduce the need for and the profitability of the interconnector.<\/p>\n<h2>$150 Million In Battery Subsidies<\/h2>\n<p>The SA Liberals are planning to spend $100 million subsidizing <a href=\"https:\/\/www.solarquotes.com.au\/battery-storage\/comparison-table\/\">home batteries<\/a>.\u00a0 They say the average subsidy will be around $2,500, so this is enough for 40,000 homes or around 6% of households.\u00a0 If the average battery size is 10 kilowatt-hours that will subsidize the installation of 400 megawatt-hours of storage.\u00a0 In addition to this they are planning to spend $50 million to subsidize large scale grid battery storage.<\/p>\n<p>I don&#8217;t know why they are doing this.\u00a0 Well, actually I do know why.\u00a0 They thought it would help them win the election.\u00a0 But the more energy storage there is in the state the less need there is for a new interconnector.\u00a0 It will also make the interconnector less profitable, which will make NSW less interested in sharing the cost of building one.\u00a0 NSW&#8217;s goal is to buy electricity cheap from SA when renewable production is high and sell it when SA prices are high.\u00a0 But energy storage will help even out these highs and lows and so NSW might decide the interconnector is not worth the cost.\u00a0 On the other hand, if battery costs continue to rapidly fall then SA Liberal&#8217;s subsidies may have little effect on the total amount of battery storage that is eventually installed.<\/p>\n<h2>Batteries Don&#8217;t Currently Provide An Environmental Benefit<\/h2>\n<p>At the moment batteries <a href=\"https:\/\/www.solarquotes.com.au\/blog\/does-battery-storage-help-or-hurt-the-environment\/\">don&#8217;t reduce<\/a> greenhouse gas emissions.\u00a0 While in the future they may help do this, right now they generally only increase emissions.\u00a0 But we do know what does decrease emissions &#8212; wind and <a href=\"https:\/\/www.solarquotes.com.au\/solar101.html\">solar power<\/a>.\u00a0 It makes no sense to subsidize battery storage which is currently an environmental negative, while allowing subsidies for renewable power to phase out.\u00a0 Market forces alone are likely to result in Australia installing a large amount of battery storage without the need for subsidies and I recommend the Liberals give market forces a go.\u00a0 (Who knows?\u00a0 They might even end up liking them.)<\/p>\n<h2>Virtual Power Plant<\/h2>\n<p>South Australia is trialing a <a href=\"https:\/\/www.solarquotes.com.au\/blog\/sa-virtual-power-plant\/\">virtual power plant<\/a>.\u00a0 The plan is for 50,000+ homes to have solar panels and batteries installed at no cost to the occupants while providing them with lower electricity bills.\u00a0 I have no idea if the Liberals want to let this go ahead<sup class='endnote'><a href='https:\/\/www.solarquotes.com.au\/blog\/sa-election-renewable-energy\/#en-20038-2' id='enref-20038-2' onclick='return hhEndnotes_show(20038)'>2<\/a><\/sup>, but they have no reason not to as it will be funded almost entirely by private investors.<\/p>\n<p>If the Liberals value private individual battery ownership, they may want to make it easy for people who own their own battery system become part of a virtual power plant and get paid for supporting the grid.\u00a0 This seems fair enough because at the moment virtual power plants have advantages private owners of home batteries do not, such as the ability to be paid wholesale electricity prices which can go over $14 per kilowatt-hour or be paid to charge batteries when there is an oversupply of electricity<sup class='endnote'><a href='https:\/\/www.solarquotes.com.au\/blog\/sa-election-renewable-energy\/#en-20038-3' id='enref-20038-3' onclick='return hhEndnotes_show(20038)'>3<\/a><\/sup>.<\/p>\n<h2>Fingers Crossed<\/h2>\n<p>The SA Liberals have stated they are fine with the expansion of renewable energy.\u00a0 I am going to assume they are telling the truth about this and Premier to be, Steven Marshall, isn&#8217;t currently calculating the scrap value of state&#8217;s wind farms.\u00a0 If the SA Liberals want low wholesale electricity prices for BHP<sup class='endnote'><a href='https:\/\/www.solarquotes.com.au\/blog\/sa-election-renewable-energy\/#en-20038-4' id='enref-20038-4' onclick='return hhEndnotes_show(20038)'>4<\/a><\/sup> and other industry in the state<sup class='endnote'><a href='https:\/\/www.solarquotes.com.au\/blog\/sa-election-renewable-energy\/#en-20038-5' id='enref-20038-5' onclick='return hhEndnotes_show(20038)'>5<\/a><\/sup>, then the quickest way to achieve that is by rapidly expanding renewable generation so it will put downward pressure on prices and limit the amount of time that gas generators set wholesale electricity prices.\u00a0 They can either help this process along or simply not stand in the way.\u00a0 But if they follow the line of the Federal Coalition and oppose renewables then everyone in the state is likely to pay more for electricity than they need to.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The South Australian Liberals have won the election.\u00a0 The results seemed clear on Saturday night and are looking very definite now on Monday morning.\u00a0 They have a small but clear majority allowing them to govern in their own right.\u00a0 Now that the power is theirs, will solar and wind continue to expand in South Australia [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":20110,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[54],"tags":[],"class_list":["post-20038","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-solar-policy","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What Does The Liberal Win Mean For Clean Energy in SA?<\/title>\n<meta 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The Liberal&#039;s Steven Marshall is in. What does this mean for the future of renewable energy in South Australia?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.solarquotes.com.au\/blog\/sa-election-renewable-energy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Does The Liberal Win Mean For Clean Energy in SA?\" \/>\n<meta property=\"og:description\" content=\"Labor&#039;s Jay Weatherill is out. The Liberal&#039;s Steven Marshall is in. What does this mean for the future of renewable energy in South Australia?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.solarquotes.com.au\/blog\/sa-election-renewable-energy\/\" \/>\n<meta property=\"og:site_name\" content=\"SolarQuotes Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/SolarQuotes\/\" \/>\n<meta property=\"article:published_time\" content=\"2018-03-18T23:16:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-03-20T09:28:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/03\/sa-result.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ronald Brakels\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@BrakelsRonald\" \/>\n<meta name=\"twitter:site\" content=\"@solar_quotes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.solarquotes.com.au\/blog\/sa-election-renewable-energy\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.solarquotes.com.au\/blog\/sa-election-renewable-energy\/\"},\"author\":{\"name\":\"Ronald Brakels\",\"@id\":\"https:\/\/www.solarquotes.com.au\/blog\/#\/schema\/person\/d0ce1779b3f5cb67cb4f146732af2fc7\"},\"headline\":\"What Does The Liberal Win Mean For Clean Energy in SA?\",\"datePublished\":\"2018-03-18T23:16:24+00:00\",\"dateModified\":\"2018-03-20T09:28:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.solarquotes.com.au\/blog\/sa-election-renewable-energy\/\"},\"wordCount\":1586,\"commentCount\":23,\"publisher\":{\"@id\":\"https:\/\/www.solarquotes.com.au\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.solarquotes.com.au\/blog\/sa-election-renewable-energy\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/03\/sa-result.jpg\",\"articleSection\":[\"Solar Policy\"],\"inLanguage\":\"en-AU\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.solarquotes.com.au\/blog\/sa-election-renewable-energy\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.solarquotes.com.au\/blog\/sa-election-renewable-energy\/\",\"url\":\"https:\/\/www.solarquotes.com.au\/blog\/sa-election-renewable-energy\/\",\"name\":\"What Does The Liberal Win Mean For Clean Energy in SA?\",\"isPartOf\":{\"@id\":\"https:\/\/www.solarquotes.com.au\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.solarquotes.com.au\/blog\/sa-election-renewable-energy\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.solarquotes.com.au\/blog\/sa-election-renewable-energy\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/03\/sa-result.jpg\",\"datePublished\":\"2018-03-18T23:16:24+00:00\",\"dateModified\":\"2018-03-20T09:28:49+00:00\",\"description\":\"Labor's Jay Weatherill is out. 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