State Labor pledges huge renewables tender for land “twice the size of Kangaroo Island”

The South Australia Labor government has shifted into caretaker mode ahead of the March 21 state election, but not before locking in plans to launch a major competitive tender for new solar, wind and storage projects if re-elected.

In a statement shared with Renew Economy on Friday, the Labor Malinauskas government said it has opened up more than 11,000 km of land – an area “twice the size of Kangaroo Island” – for renewable energy development under the state’s Hydrogen and Renewable Energy Act.

The plans, which were signed off by the government before entering caretaker mode on the weekend, are to invite renewable energy investors from around the world to propose enough projects to power more than half a million South Australian homes.

Pending the result of the election, state energy minister Tom Koutsantonis said the tender would launch almost straight away, at the end of March, with the energy department overseeing the process and consultation with prospective investors.

The call for tenders, which will be open for a 13-week period, will invite applications for renewable energy feasibility licences within the designated release areas, the department says.

It says an extended tender period has been provided to allow additional time for applicants to prepare their bids and engage with native title holders on an agreement.

The media release gives no indications of what size projects – or what mix of technologies – a re-elected Labor government would be seeking through the tender. Renew Economy has sought further information, and will update the story if there is more detail to add.

South Australia leads the country – and the world – in the penetration of wind and solar, with a near 75 per cent share over the last 12 months and a goal of reaching 100 per cent net renewables by the end of 2027.

“Net” renewables means that the state will export surplus power to neighbouring states when needed, and also import power from those states at times. Big batteries will also play a prominent role, and account for up to 40 per cent of state demand at times in the evening peak.

The state’s ambitious push to renewables has, historically, been supported by both sides of parliament, but that bipartisanship looks to be on shaky ground this election cycle, with the state Liberal opposition showing signs of aligning more closely with its federal counterpart on core climate and energy policies.

Most worryingly, new SA Liberals leader Ashton Hurn has suggested the party will abandon the state’s 100 per cent net renewables target, despite that target having been first set under the Marshall Liberal government in 2019.

SA Labor, on the other hand, is leaning in to the state’s formidable record on renewables with the promise of driving a new round of investment to help deliver the final chunk of firmed capacity needed to get to the 2027 target.

“It’s hard to overstate the scale of this milestone,” Labor energy minister Tom Koutsantonis said on Friday. “It’s a pivotal point in our state’s economic history that could usher in many years of sustainable growth.

“We are using our world-first regulatory framework to… [lay] the foundation for a clean energy boom across regional SA that will power homes, industry and construction, and support sustainable economic activity for decades.

“We have always maintained that all South Australians should have opportunities to benefit from the energy transition, and this is another significant step in that journey.”

Koutsantonis says the land opened for tenders under the Hydrogen and Renewable Energy Act will be subject to a coordinated and competitive process designed to give certainty to investors, landholders and owners and communities.

The parcels of land singled out by the government for further studies and potential investment include a roughly 5,200 km2 area on the Upper Eyre Peninsula in the Gawler Ranges East region. In the Upper Spencer Gulf region, an area spanning around 6,500 km2 has been declared suitable for development in Whyalla West.

The department of energy says the release areas were determined after extensive consultation with pastoralists, Native Title groups, other landholders and regional communities. Consultation with other government agencies and stakeholders was also undertaken to ensure social, economic and environmental considerations were “comprehensively considered,” it says.

“We’ve arrived at this point after an extensive and rigorous process of consultation, research and negotiation, all with a view to ensuring that renewable energy opportunities can be optimised without risking the precious natural environments and social capital of South Australia’s regions,” Koutsantonis says.

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