In a landmark move for renewable energy, South Australia has secured federal funding through a Renewable Energy Transformation Agreement to become the first non-hydro grid globally to achieve 100% net renewable energy. The federal government has committed to underwriting at least 1 GW of new wind and solar capacity and an additional 400 MW (1,600 MWh) of battery storage, propelling the state toward its 2027 target.
Currently leading with a 70% share of renewable energy, South Australia plans to leverage new projects and the upcoming Project Energy Connect transmission link with New South Wales to further bolster its clean energy goals. This shift will allow the state to match its annual energy needs with the power generated and stored from renewables, exporting or importing power as needed and using gas plants for peak demand.
South Australia's renewable milestone highlights the evolving energy landscape as it aims to retire coal by 2032. This target was initially set by the previous Liberal government and accelerated from 2030 to 2027 by the current administration.
Federal Climate Minister Chris Bowen announced the deal at Port Augusta, formerly home to a coal plant and now a green energy hub, and highlighted the significance of South Australia's contribution to the federal Capacity Investment Scheme (CIS), which targets 32 GW of new renewable capacity across Australia by 2030. The state’s secured funding allows it to move forward with critical infrastructure and grid stability projects, supporting new renewable developments.
The expansion includes several wind and solar projects, with South Australia’s largest solar plant, the 412 MW Goyder South wind farm, set to connect to the grid. New battery storage installations at sites like Blyth, Hallett, and Clements Gap, among others, will further advance the state’s journey to 80% renewable energy over the next year, laying the groundwork for achieving the 100% net renewable milestone by 2027.
In addition, South Australia is developing the world’s first green hydrogen power plant at Whyalla, including a 250 MW electrolyzer and storage facility, the largest of its kind globally. Industry demand for low-cost, zero-emission energy is already high, with over 2 GW of load inquiries reported.
“South Australia has led the way in renewable energy innovation, and this agreement accelerates our commitment to a cleaner, more reliable power system,” stated State Energy Minister Tom Koutsantonis. "We’re focused on building a grid that supports South Australian households and businesses."
Minister Bowen emphasized the significance of the Renewable Energy Transformation Agreement: “This agreement provides the certainty and confidence developers have long sought, ensuring affordable and clean energy while supporting local communities and industry."
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