The Australian Government is developing a series of bilateral energy and emissions reduction agreements with state and territory governments that will improve energy reliability and affordability across the country and support the transition of energy markets to lower emissions technologies.
South Australia energy and emissions reduction agreement
On 18 April 2021, the Australian Government and Government of South Australia signed a $1.08 billion energy and emissions reduction agreement that will deliver secure, reliable and affordable energy to South Australians and the east coast market.
Under the agreement, the Commonwealth will contribute $660 million, while South Australia will provide $422 million. Key components of the agreement include:
- a gas target of an additional 50PJ (petajoules) per year by the end of 2023 and a stretch target of 80PJ per year by 2030
- $400 million in Commonwealth funding for investment in priority areas such as carbon capture and storage, electric vehicles, hydrogen and other emissions reduction projects
- up to $100 million for Project EnergyConnect through joint underwriting of key early works to boost the flow of power between South Australia and NSW
- up to $110 million in Commonwealth concessional finance for solar thermal and other storage projects in South Australia.
Tasmania energy and emissions reduction agreement
On 15 December 2020, the Australian Government and Tasmanian Government signed a bilateral energy and emissions reduction agreement to deliver secure, reliable and affordable power for Tasmanians. The deal will better connect Tasmania with mainland Australia and the National Electricity Market through the Marinus Link interconnector project and the Battery of the Nation initiative.
Under the agreement, the Commonwealth will contribute a further $93.9 million, while Tasmania will provide $39 million, to progress the Marinus Link project towards a financial investment decision.
NSW energy and emissions reduction agreement
On 31 January 2020, the Hon Scott Morrison MP, Prime Minister, and the Hon Gladys Berejiklian MP, Premier of NSW, signed an agreement, worth more than $2 billion, committing both governments to collaborate on a number of initiatives that will:
- increase gas and electricity supply in NSW by encouraging investment
- improve grid security by supporting transmission interconnection and network access
- support emissions reduction projects that deliver genuine abatement.
Energy and emissions reduction agreement with South Australia The Hon Scott Morrison MP, Prime Minister; the Hon Angus Taylor MP, Minister for Energy and Emissions Reduction, 18 April 2021.
Energy and emissions reduction state deal with Tasmania The Hon Scott Morrison MP, Prime Minister; the Hon Angus Taylor MP, Minister for Energy and Emissions Reduction; the Hon Peter Gutwein MP, Premier of Tasmania; the Hon Guy Barnett MP, Tasmanian Minister for Energy - joint media release, 15 December 2020
Project Marinus ARENA and TasNetworks
NSW energy deal to reduce power prices and emissions The Hon Scott Morrison MP, Prime Minister; the Hon Gladys Berejiklian MP, Premier of NSW - joint media release, 31 January 2020