PARLIAMENT OF SOUTH AUSTRALIA

House of Assembly

HANSARD
Tuesday 20 May 2014


AUSTRALIAN RENEWABLE ENERGY AGENCY

The Hon. S.W. KEY ( Ashford ) ( 14:58 ): My question is directed to the Minister for Energy.

The Hon. I.F. Evans interjecting:

The SPEAKER: The member for Davenport is warned a first time.

The Hon. S.W. KEY: Minister, as announced in the federal budget, what does abolishing the
Australian Renewable Energy Agency mean for current and future renewable energy projects in
South Australia?

The Hon. A. KOUTSANTONIS ( West TorrensTreasurer, Minister for Finance, Minister for State
Development, Minister for Mineral Resources and Energy, Minister for Small Business, Minister for
Automotive Transformation) (14:59): ARENA, otherwise known as the Australian Renewable Energy
Agency, was established on 1 July 2012 as an independent agency to improve the competitiveness of
renewable energy technologies and to increase the supply of renewable energy in Australianoble
aims, Mr Speaker.

At the beginning, ARENA enjoyed bipartisan supporteven in this parliament ARENA enjoyed
bipartisan supportdesigned to increase the supply of renewable energy in Australia and to make it
more affordable for ordinary Australians. Mr Speaker, South Australia (as you would be well aware)
is a leader in clean technologies. We are an investment-friendly destination for renewables because
of our diverse set of world-class renewable energy resources and, of course, our world-class
streamlined approval processes.

Sadly, the federal Liberal National government, headed by Prime Minister Abbott, has announced
the axing of ARENA in the most recent federal budget. With the global hunt for renewable energy
well and truly on, the Prime Minister is telling potential investors to look elsewhere for support for
innovation in renewable energy. South Australia currently has 16 projects receiving ARENA financial
assistance that are either wholly or partially based within South Australia and cover bioenergy,
geothermal, ocean, and solar technologies.

As at 5 May 2014, total financial assistance provided by ARENA to these projects amounts to
approximately $152 million, which includes a feasibility study for the solar thermal plant at Port
Augusta. However, any future financial assistance for the renewables project is now lost. That
includes Alinta's solar thermal power station at Port Augusta. That axing means we will miss out on
millions of dollars of investment and highly skilled jobs here in South Australia because of Mr
Abbott's cuts.

This is a backward step and, at a time when we need innovative industries, it is senseless. Yet, it is
another broken promise from a long list by the Abbott governmentthe same government that
promised the Australian people an additional million solar rooftops by 2020. The most recent budget
contains no funding to make this happen.

Unfortunately, the scrapping of ARENA means that it is likely that the investment in the cleaner
energy sector won't happen in Australia and certainly won't happen in Port Augusta. It will make
that investment go to other countries with a more stable, much more welcoming environment for
renewable energy. I hope members opposite who have been championing the cause of the solar
thermal plant at Port Augusta might actually fire up and perhaps send a letterwe wait for the
letter

Ms REDMOND: Point of order Mr Speaker.

The SPEAKER: Yes, the member for Heysen.

Ms REDMOND: I think that the minister has run a little off the question and has begun to debate the
issue.

The SPEAKER: I think he is taunting the member for Stuart, and I would ask him to stop.

Mr van Holst Pellekaan: It won't work sir.

An honourable member: From that answer, he's not that good.

The Hon. A. KOUTSANTONIS: Sir, in my experience, never pick on the tallest man in the room. I
always pick on the shortest man in the room. It's much easier to win, sir, but the reality is Rowan
Ramsey, the federal member for Grey, has seen his community disadvantaged by decisions he is
going to vote for, and I would ask members opposite to lobby the commonwealth government to
reverse this decision.

[ENDS]