Southern Adelaide Energy Baseline Report - 20th March 2019
The Southern Adelaide Economic Development Board’s (SAEDB) stated goal relevant to this project is to significantly enhance the region’s appeal for further and new industry investment, attracting industry to the region through an innovative approach to energy affordability, improved security and stability of the local networks. This report, The Southern Adelaide Energy Baseline Report, is the first stage of pursuing this goal.
The second stage, or ‘Opportunities’ stage, will pursue project opportunities in more detail informed by this Baseline report
Section 2 of this report provides some background material relevant to understanding the components of the cost of electricity for businesses in South Australia and explains that the main components are wholesale energy costs and network charges.
Section 3 describes the electricity and gas infrastructure in the region and highlights that the electricity network has significant ‘spare’ capacity for new industry and, as illustrated in the consumption patterns presented in Section 4, is under-utilised outside of peak times.
Section 5 provides an estimate of the local energy economy: approximately $250m per annum in electricity expenditure and $30m for natural gas. The estimated investment in over 130MW of rooftop PV by households and small business also exceeds $250m over the last decade. This Section also illustrates the large number of energy service businesses based in the region.
Section 6 provides a summary of trends in the electricity markets relevant to energy consumers in the region including Wholesale prices and Renewable Energy Target costs. This section also describes the impact of South Australia’s growing list of solar energy projects – rooftop and utility scale solar farms - and how this is expected to put downward pressure on wholesale electricity prices during daylight hours.
Section 7 outlines a number of opportunities to improve energy affordability and security for the region. These include providing energy advice to business and establishing an energy procurement hub, improving utilisation of the local electricity network, shifting energy consumption into solar hours and participating in the Hydrogen economy.
The subsequent stage of this project can develop specific projects from each of these opportunities.