South Australia to Enshrine 100% Renewable Energy Target into Law as BHP Eyes Smelting Expansion

The South Australian Labor government is set to enshrine its ambitious 100% net renewable energy target into law. This move aligns with the state's status as a global leader in renewable energy, currently meeting over 70% of its energy demand through wind and solar power. The target, originally set for 2030, has been accelerated to 2027, coinciding with the completion of a new transmission link to New South Wales.

Unlike other regions that rely on hydro or geothermal power to support their renewable energy targets, South Australia will be the first to achieve 100% renewables primarily through wind and solar, supplemented by storage solutions and a decreasing reliance on gas for backup. This shift has allowed the state to reduce its fossil fuel use significantly and cut emissions by more than 50% since 2005. The new legislation will solidify a 60% reduction in emissions by 2030 and a net-zero target by 2050.

Deputy Premier and Climate Minister Susan Close emphasized the significance of these targets, highlighting South Australia’s progress and the role of the renewable sector in driving these achievements. The legislation, she noted, sends a strong signal to investors and businesses about the government’s commitment to a net-zero emissions future.

Critics of renewable energy have often argued that wind and solar power cannot sustain a modern economy. However, South Australia's experience suggests otherwise. The state's transmission company, ElectraNet, reports growing interest from businesses looking to tap into South Australia’s low-carbon grid. This interest has the potential to double the state’s average load, further boosting its economy. Recent data shows that business investment in the state has surged, with a 15% increase since the 2022 State Election, outperforming the national average.

The state’s renewable energy progress has also attracted significant interest from BHP, a global mining giant. BHP is considering doubling its refining and smelting capacity at the Olympic Dam copper mine, a move that aligns with the global push for decarbonization. This expansion would position South Australia as a key player in meeting the growing international demand for copper, essential for the energy transition.

BHP has already taken steps to ensure its operations are powered by renewable energy, including off-take agreements with Spanish energy giant Iberdrola and a "baseload" renewables contract with Neoen. These agreements will supply green energy from major wind and battery projects in the region.

As South Australia continues to lead the way in renewable energy, businesses like BHP and others can benefit from the expertise of EServices4u. Our services include energy procurement, consultancy on energy-efficient practices, and the installation of renewable energy solutions such as wind and solar panels. With EServices4u, companies can align their operations with South Australia’s ambitious renewable energy goals, reduce their carbon footprint, and capitalize on the economic opportunities emerging from the global energy transition. Let us help you navigate the shift to a sustainable and energy-efficient future.