The South Australian Government has delayed its energy security target (EST) until 2020.
The EST is a key element in the state government’s $500 million energy plan, announced in March.
The target would require energy retailers to source 36 per cent of the state’s energy from local, cleaner generators rather than from Victorian coal through the interconnector.
Energy Minister Tom Koutsantonis said there had been a number of changes in the national electricity market (NEM) since the EST was announced.
“The energy security target is designed to both put downward pressure on power prices and improve system strength,” he said.
“However, since we announced the EST a number of changes in the national electricity market have delivered system security outcomes similar to those the EST would seek to achieve.
“These include new gas generation capacity coming online, new system security requirements from AEMO and the implementation of 49 out of 50 Finkel recommendations.”
Mr Koutsantonis said by delaying the EST to 2020, a better outcome could be delivered to South Australians.
“Modelling from Frontier Economics also shows that an EST would have the greatest impact when introduced into a more competitive market,” he said.