The South Australian Government has decided to delay the start date of the Energy Security Target to 1 January 2018, while clarity is sought on the Federal Government’s response to the Finkel Review.
Energy Minister Tom Koutsantonis said State and Federal Governments have agreed at COAG to go away and consider the Finkel Review, and specifically the implications of a Clean Energy Target (CET).
“Industry is hopeful that the Federal Government can land on a coherent climate and energy policy the drives new investment in the National Electricity Market.”
Introducing the Energy Security Target in January 2018 will give industry the opportunity to better understand the implications of the Finkel Review and how the retailers and generators in the market will respond to the incentives provided through the EST.
A delayed start date was also requested in a number of submissions from industry during the consultation process to allow them further time to prepare.
The Energy Security Target was announced as part of the State Government’s $550 million energy plan in March. The target will boost energy security and increase local competition by requiring energy retailers to source more electricity from South Australian generators rather than through the interconnector to Victoria.
The Target, which was initially proposed to be introduced on 1 July 2017, will incentivise clean, dispatchable local electricity generation that also contributes to the security of the South Australia’s power system.