Australia seals AUD$1bn energy deal to slash emissions

The federal-state deal aims to reduce power prices, unlock gas supplies and start work on an interconnector

Australia‘s federal government and the state of South Australia have signed an AUD$1.08 billion (£600m) deal to make energy more affordable and curb carbon dioxide emissions.

The funding will support measures that will prevent gas supply shortfalls in the market, unlock investments in emissions reduction projects and start works on a new interconnector between South Australia and New South Wales.

A sum of AUD$400 million (£223m) will be spent on carbon capture and storage, electric vehicles and hydrogen projects.

Solar thermal schemes will also be financed through an AUD$110 million (£61.4m) grant programme.

Prime Minister Scott Morrison said: “Families and businesses need affordable, reliable power. That is what reduces prices and creates jobs. Australians also want to ensure we are doing everything we responsibly can to combat climate change.

“This means getting more gas into the market to support the increase in renewable solar and wind power coming into the electricity system. One works with the other to deliver lower cost, lower emissions and reliable power.”

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