Labor Government Announces Major Renewable Energy Tender in South Australia
The South Australian Labor government has entered caretaker mode in anticipation of the state election on March 21, but not before committing to a significant competitive tender for new solar, wind, and storage projects should they secure re-election.
In a statement released to Renew Economy on Friday, the Malinauskas government disclosed that it has opened over 11,000 km of land—roughly twice the area of Kangaroo Island—for renewable energy initiatives under the Hydrogen and Renewable Energy Act.
Inviting Global Investment
The government has outlined plans to welcome renewable energy investors from across the globe to propose projects capable of supplying power to more than half a million homes in South Australia. Energy Minister Tom Koutsantonis noted that the tender process would commence promptly at the end of March, contingent upon the election outcome, with the energy department managing the oversight and interaction with potential investors.
The tender call will be open for 13 weeks, allowing applicants to apply for renewable energy feasibility licences within the specified areas. This extended timeline is intended to give stakeholders sufficient time to prepare their proposals and consult with native title holders regarding agreements.
South Australia’s Renewable Leadership
Details regarding the specific size or technology mix of the projects that a re-elected Labor government would pursue remain vague, with Renew Economy seeking further clarification. South Australia continues to lead both nationally and internationally in wind and solar energy usage, achieving nearly 75 per cent penetration over the past year and aiming for 100 per cent net renewables by 2027.
The term “net” renewables signifies that the state will export excess energy to neighbouring territories when required, while also being open to importing power during peak demand times. Large-scale batteries are set to play a significant role, potentially meeting up to 40 per cent of the state’s demand during evening peak hours.
Political Landscape and Challenges
Historically, the ambitious transition towards renewables has enjoyed support from both sides of parliament. However, this election cycle appears to be tipping that bipartisanship into uncertain territory, as the state Liberal opposition is increasingly mirroring the federal stance on essential climate and energy policies.
Notably, the new leader of the SA Liberals, Ashton Hurn, has indicated that the party might retract the state’s 100 per cent net renewables goal, which was originally established under the Marshall Liberal government back in 2019. In contrast, SA Labor is promoting the state’s impressive renewable energy achievements, vowing to stimulate a new wave of investments vital for achieving the 2027 target.
“This milestone cannot be overstated,” commented Energy Minister Koutsantonis. “This moment represents a crucial juncture in the economic history of our state, potentially paving the way for sustained growth for many years to come.”
He further stated, “We are leveraging our pioneering regulatory framework to establish the groundwork for a clean energy boom in regional South Australia, powering homes, industries, and construction, while fostering sustainable economic activities for decades ahead. We have consistently believed that all South Australians should benefit from the energy transition, and this represents another substantial step forward in that journey.”
Ensuring Responsible Development
The areas designated for tendering under the Hydrogen and Renewable Energy Act are set to follow a coordinated and competitive approach, aiming to provide clarity to investors, landowners, and local communities. Selected regions for further investigation and potential investment include an estimated 5,200 km² expanse on the Upper Eyre Peninsula in the Gawler Ranges East, alongside approximately 6,500 km² in the Upper Spencer Gulf, particularly around Whyalla West.
The Department of Energy indicates that the chosen release areas were identified following extensive consultations with pastoralists, Native Title groups, and regional communities, as well as engagement with other governmental agencies to guarantee that social, economic, and environmental factors were thoroughly evaluated.
Koutsantonis emphasised, “This achievement is the result of dedicated efforts in consultation, research, and negotiation, ensuring that renewable energy potentials are maximised while protecting South Australia’s cherished natural landscapes and social infrastructure.”
