SACOME Annual Report 2016-17
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POLICY – PRIORITY THEMES<br />
State Energy Plan<br />
The SA Government released the ‘Our Energy<br />
Plan’ in March 20<strong>17</strong>.<br />
Components of the plan aligned with <strong>SACOME</strong><br />
recommendations to the Finkel Review into the<br />
future security of the NEM, to improve security of<br />
the electricity system.<br />
This included the additional powers to direct the<br />
market under certain circumstances and market<br />
mechanisms to enhance energy security.<br />
Moratorium is inconsistent with the strong<br />
regulatory system, safety record and scientific<br />
facts of gas exploration, development technology<br />
and practices in SA.<br />
<strong>SACOME</strong> supported the State Government’s<br />
announcement of Plan for Accelerating<br />
Exploration (PACE) funding to develop new gas<br />
resources to supply the local energy market.<br />
Climate Change<br />
Government initiatives to address climate<br />
change are characterised by a complex array<br />
of policy instruments at the federal level, and<br />
complicated by state and territory policies that<br />
have created distortions in electricity markets,<br />
leading to negative outcomes for price, reliability<br />
and security.<br />
<strong>SACOME</strong>’s submission to the Federal<br />
Government’s review of climate change policies<br />
emphasised the need for policies to be guided<br />
by the following key principles:<br />
o Market based<br />
o Trade competitive<br />
o Simple and efficient<br />
o Effective in reducing emissions<br />
o Technology neutral<br />
o Broad based<br />
o Complement energy policies<br />
A national framework is critical to ensure policies<br />
at all levels of government are assessed against a<br />
criterion that ensures competitive price, security<br />
and reliability, in addressing agreed national<br />
emissions reduction.<br />
Infrastructure<br />
<strong>SACOME</strong>’s priority is to identify the capacity<br />
needs of freight, ports, electricity, water and<br />
gas, to understand the required infrastructure<br />
development to secure the future of SA’s<br />
resources sector. Access routes to global markets<br />
that are affordable and efficient are essential<br />
for SA resource projects to be competitive in a<br />
globalised market.<br />
There is a critical need to address bottlenecks to<br />
open the north and west of the state - boosting<br />
productivity throughout the economy.<br />
Sealing the Strzelecki ($450m), improved<br />
freight corridor at Port Augusta ($235m), and<br />
transmission upgrading (up to $550m) to<br />
support new resources development on the<br />
Eyre Peninsula are top of the list of priority<br />
infrastructure needs for the industry.<br />
<strong>SACOME</strong> continues to advocate for investment<br />
in business case development to deliver shovel<br />
ready projects and leverage industry infrastructure<br />
requirements to support the wider SA economy and<br />
community.<br />
<strong>SACOME</strong> will continue to support government<br />
initiatives and policies that deliver secure and<br />
competitively priced electricity.<br />
Access to gas<br />
<strong>SACOME</strong> opposes any moratorium on gas<br />
exploration or development in the state. Gas is a<br />
crucial part of the energy mix and to implement<br />
moratoria on known resources of gas is likely to<br />
lead to higher energy prices in SA.<br />
12<br />
South Australian Chamber of Mines and Energy<br />
<strong>Annual</strong> <strong>Report</strong> 20<strong>17</strong> 13