South Australian Premier Mike Rann has announced plans to set carbon emissions limits for new electricity production in South Australia so strict, it would effectively prevent the future construction of new coal-fired power plants in the State.
Presently, 34% of South Australia’s electricity is generated by coal-fired power. Gas accounts for almost half, with 18% of the State’s electricity coming from wind power generation. South Australia is aiming for 33% of its electricity to come from renewable energy sources by 2020
“South Australia is host to half of Australia’s wind power and last month we passed through the threshold of 1,000 MW of installed wind energy capacity”, said Mr. Rann. “This outcome has been driven by South Australia aggressively capitalising on the Commonwealth Government’s expanded 20 per cent by 2020 Renewable Energy Target.”
South Australia has only two coal fired power stations, both of which use brown coal – one of the most carbon emissions intensive fuels. Both plants source their fuel from dwindling resources at Leigh Creek, meaning that the plants may need to convert to natural gas in the future.
Mr. Rann has planned consultations next year with industry and interest groups relating to setting a maximum carbon content for electricity generated from any new plant in South Australia, with the starting point for discussions being a limit of 0.7 tonnes of carbon dioxide emissions per megawatt hour
“The limit will be introduced as a transitional measure pending the introduction of a national carbon policy”, said Mr. Rann; who also flagged the approach may have implications for initiatives such as off-grid diesel and syngas projects where power generation can form part of a larger process. The Government intends to provide sufficient flexibility in its legislation to be able to address unintended outcomes.
