South Australia is planning to introduce tough new carbon emissions standards that will ban construction of new coal-fired power stations.
Legislation to apply the new limits will go to Parliament next year after talks with the electricity industry and the release of a discussion paper.
Premier Mike Rann outlined details of the move at the UN climate change conference in Cancun, Mexico, which is being attended by about 15,000 delegates from more than 190 countries and states.
Mr Rann said SA wanted to set a carbon emissions limit for new electricity production that would be by far the toughest in Australia.
SA currently has two coal-fired power stations, Flinders and Playford at Port Augusta, which provide nearly 35 per cent of the state’s power load.
Both use low-quality brown coal from Leigh Creek and the Carbon Monitoring for Action group has estimated that, between them, the two stations use 4.97 million tonnes of greenhouse gases each year.
The new rules will not apply to the Flinders and Playford power stations but government sources said both were facing major operational changes possibly conversion to natural gas, because the coal supply at Leigh Creek is expected to eventually run out.
Mr Rann said the Commonwealth had initiated a consultation process on its policy to require all new power stations to meet best-practice emissions standards.
“I support that approach as it offers an effective mechanism for reducing greenhouse gas emissions from the stationary energy sector on a national basis,” he told The Advertiser.
Gas accounts for almost half of SA’s electricity generation, while 18 per cent comes from wind power generation.
By 2020, 33 per cent of the state’s power will come from renewable energy.
Mr Rann said the announcement signalled a clear intention to drive the advantage home of having the toughest and most comprehensive regime for the carbon intensity of electricity generation in Australia.
He said the Government had been guided in its deliberations on the carbon intensity ceiling by expert advice received from the engineering services company, WorleyParsons.
“The Government recognises that its approach may have implications for specific projects such as off-grid diesel projects as well as syngas and coal-to-liquids projects where power generation can form part of a larger process,” Mr Rann said.
“As a starting point, the Government intends to provide sufficient flexibility in its legislation to be able to recognise and respond to unintended outcomes. This will also take into account innovative approaches for managing carbon emissions that are being planned by project developers.”
