Antinuclear

Last week’s meeting of energy ministers fumbled their first chance to do so, leaving business hamstrung. Nowhere is that as painfully clear than in South Australia.

The state has led the country in tapping into rich, renewable resources but when it comes to accessing the benefits business is still missing out. The problem? South Australia must operate within a larger national system that’s designed for a different age.

The wholesale electricity price spikes seen in July, claims of gas market manipulation and barriers preventing the rapid shift to 100 per cent renewable electricity have highlighted the many systematic flaws. At the heart of all this, though, sits an outdated grid that is based on last century’s centralised generation model.

This obsolete system has served us well but is now holding back the state and business community.

The sand is rapidly shifting under the traditional energy market’s feet driven by households and businesses that are no longer just consumers of energy but also producers, particularly through domestic solar panels

Local companies, especially high energy users such as manufacturers and heavy industry, are unfairly paying the price.

It is not enough for our government leaders to all agree that there is a problem because those high energy businesses will continue to foot the bill until they put their minds to a solution.

We desperately need a smart, adaptive grid that provides the 21st century energy needs of the nation. It must enable Australian businesses and households to reap the benefit of the billions of dollars being invested in the global shift to a low carbon economy.

It’s what makes the outcomes from last week’s energy ministers’ meeting so disappointing.

Our politicians largely failed to seize upon three simple actions needed to support the next generation of business, spur investment and create new jobs:

Firstly, incentives must be created to accelerate investment in a complementary mix of renewable energy and battery storage.

A wider mix of renewable sources and storage options are needed to level out supply and eliminate wholesale energy price spikes.

Top priorities should be building a solar thermal plant at Port Augusta, fast-tracking the uptake of energy storage like battery adoption and a demonstration pumped hydro project and supporting business to install rooftop solar so they can take control of their bills.

Secondly, our energy ministers must restart the national rollout of electricity smart meters informed by the lessons from the Victorian experiment as a smart, responsive national energy grid must be built on a foundation of solid data.

Thirdly, an interconnector between SA and NSW must be built because it’s impossible for SA to become the national energy exporter it should be until this happens.

Some good did come out of the meeting.

A review of the business case for a second interconnector between SA and Victoria has been fast tracked, but it’s not nearly enough.

South Australia has been calling for a second interconnector since 1998. The lack of a second interconnector is costing the state’s businesses millions and what is needed is direct infrastructure investment, not another business case.

South Australia has a bright energy future. The potential is there to provide industry with some of the world’s most affordable and clean energy, create thousands of jobs and become the nation’s renewable energy super power – exporting electrons around the country.

Decisive action by the country’s energy ministers is critical to making this a reality.

Tom Quinn is Executive Director of the Future Business Council