SACOME Annual Report 2016-17

POLICY – PRIORITY THEMES
State Energy Plan
The SA Government released the ‘Our Energy
Plan’ in March 2017.
Components of the plan aligned with SACOME
recommendations to the Finkel Review into the
future security of the NEM, to improve security of
the electricity system.
This included the additional powers to direct the
market under certain circumstances and market
mechanisms to enhance energy security.
Moratorium is inconsistent with the strong
regulatory system, safety record and scientific
facts of gas exploration, development technology
and practices in SA.
SACOME supported the State Government’s
announcement of Plan for Accelerating
Exploration (PACE) funding to develop new gas
resources to supply the local energy market.
Climate Change
Government initiatives to address climate
change are characterised by a complex array
of policy instruments at the federal level, and
complicated by state and territory policies that
have created distortions in electricity markets,
leading to negative outcomes for price, reliability
and security.
SACOME’s submission to the Federal
Government’s review of climate change policies
emphasised the need for policies to be guided
by the following key principles:
o Market based
o Trade competitive
o Simple and efficient
o Effective in reducing emissions
o Technology neutral
o Broad based
o Complement energy policies
A national framework is critical to ensure policies
at all levels of government are assessed against a
criterion that ensures competitive price, security
and reliability, in addressing agreed national
emissions reduction.
Infrastructure
SACOME’s priority is to identify the capacity
needs of freight, ports, electricity, water and
gas, to understand the required infrastructure
development to secure the future of SA’s
resources sector. Access routes to global markets
that are affordable and efficient are essential
for SA resource projects to be competitive in a
globalised market.
There is a critical need to address bottlenecks to
open the north and west of the state - boosting
productivity throughout the economy.
Sealing the Strzelecki ($450m), improved
freight corridor at Port Augusta ($235m), and
transmission upgrading (up to $550m) to
support new resources development on the
Eyre Peninsula are top of the list of priority
infrastructure needs for the industry.
SACOME continues to advocate for investment
in business case development to deliver shovel
ready projects and leverage industry infrastructure
requirements to support the wider SA economy and
community.
SACOME will continue to support government
initiatives and policies that deliver secure and
competitively priced electricity.
Access to gas
SACOME opposes any moratorium on gas
exploration or development in the state. Gas is a
crucial part of the energy mix and to implement
moratoria on known resources of gas is likely to
lead to higher energy prices in SA.
12
South Australian Chamber of Mines and Energy
Annual Report 2017 13