Following Prime Minster Turnbull's surprise Snowy Hydro announcement and the now-infamous Weatherill/Frydenberg press conference squabble, we thought you may be asking...how did we get here?
Here's how...
You’ve probably read (or at least heard of) the brouhaha surrounding South Australia’s energy market. So what’s all the hum about?
In the simplest terms it’s about our need to grow energy supply to keep up with rising demand in South Australia (and everywhere else). Here are the 10 things you need to know:
- After a summer of power outages, Tesla kicked a hornet’s nest by claiming they could solve the state’s energy crisis in 100 days by installing a 100MW battery.
- Atlassian founder Mike Cannon-Brookes amplified public interest by calling Tesla’s founder Elon Musk on the claim. Musk replied that he’d do it free if it took any longer.
- Freebies. Billionaires. A high-stakes gamble. Cue a predictable meltdown on Twitter.
- The heightened interest drew in Prime Minister Malcolm Turnbull, who apparently got on the phone to Musk about his offer.
- That spurred home-grown battery makers to also get involved - suggesting that Turnbull should do more to support local innovators.
But there are two broader points to this story as well. First, battery storage is just one possible solution for the future. And second, there’s a question about whether States or the Federal Government should be directing energy policy. Which explains what happened next:
- SA’s Premier announced a $550m energy investment plan which includes building the nation’s largest battery storage facility and setting up a $150m renewable energy fund.
- He also announced a new state-owned gas-fired power station that would make up for the upcoming closure of Victoria’s Hazelwood plant.
- The Federal Minister for Environment and Energy responded by calling the Premier’s proposal “nonsense” and saying it would disrupt the national electricity market.
- Prime Minister Malcolm Turnbull meanwhile had already called for a meeting with the CEOs of our mining giants to discuss the future of gas in Australia.
- And now various people have offered predictions about whether the SA plan will increase or decrease prices. Suffice to say there are plenty of voices on both sides.
The bottom line
Our energy supply does need to increase. And as Origin Energy’s CEO Frank Calabria said in a recent speech, renewables and gas can provide this increase while reducing carbon emissions. More importantly, our solutions and expertise can also be exported to other markets. Which is why renewables form an increasingly prominent part of Origin’s strategy. For example, Origin buys 100% of the energy produced at the Moree Solar Farm. On the flip side, saving energy is also just as important. Which is why Origin also provides Australians in-home battery storage units.
---
For multiple perspectives on the most important issues - inkl.com
