South Australia to build battery and gas plant

South Australia will build a battery to restore renewable energy and a gas-fired power plant to ensure energy security.

South Australian Energy Minister Tom Koutsantonis and Premier Jay Weatherill at the energy plan conference in Adelaide.

South Australian Energy Minister Tom Koutsantonis and Premier Jay Weatherill at the energy plan conference in Adelaide. Source: AAP

South Australia will build Australia's largest battery to store renewable energy and a new 250 megawatt gas-fired power plant under a six-point plan to secure the state's energy needs.

Other elements of the strategy include legislation to give the energy minister direct power to intervene in the electricity market and the establishment of a $150 million renewable energy fund to encourage new investment.

The government will also set an energy security target to enforce electricity retailers to use more locally-generated power.

"This is a plan that puts control of our energy system back in South Australian hands," Energy Minister Tom Koutsantonis said on Tuesday.

"For too long South Australian households and businesses have been at the mercy of private companies seeking to maximise their profits and a national operator that manages our grid from Melbourne and Sydney."

The minister said the plan would also create about 650 jobs, although it stopped short of guaranteeing the new gas plant would be up and running by next summer.

The government's action comes after a statewide blackout last September when freak storms brought down major transmission lines in the state's north.

It also follows a summer of significant strain on the state's energy network when heatwave conditions raised the possibility of power cuts.

On one occasion about 90,000 properties were intentionally blacked out when the Australian Energy Market Operator ordered load shedding to deal with a lack of adequate supply.

On a number of other occasions AEMO warned of possible load shedding when demand soared.

Premier Jay Weatherill said the government's plan would also put downward pressure on electricity prices.

"We'll get reliable, affordable and clean power and ensure more of the state's power is sourced, generated and controlled here in South Australia," he said.

"Our state has built its reputation on a clean, green environment and this plan recognises that clean energy is our future."


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