DOMESTIC GAS RESERVATION
POLICY — RENEWABLE ENERGY
817. Hon TIM CLIFFORD to the minister representing the
Minister for Energy:
I refer to the changes to the WA
domestic gas policy.
(1) Will the
minister confirm that a predicted outcome of these policy changes alongside the
McGowan government's support for fracking and onshore gas will be that
the amount of gas available for domestic use will increase?
(2) How many
onshore gas and fracking projects does the McGowan government anticipate will
come online in the next five years?
(3) Has the minister considered the market
implications of these policy changes on state-based renewable energy?
(4) Is the
minister concerned that this policy would reduce the price of domestic gas to a
level that renewable energy sources will find difficult to compete with?
(5) Is the minister concerned about the impact
increased domestic gas use will have on the state's rising emissions?
Hon
STEPHEN DAWSON replied:
I thank the honourable member for
some notice of the question. The following information has been provided to me
by the Minister for Energy.
(1) The
government believes that the recently announced changes to the WA domestic gas
policy will ensure that sufficient gas is made available to meet the demand of Western
Australian consumers.
(2) There are
three conventional onshore gas production projects and no fracking production
projects anticipated to come online in the next five years.
(3) The
government does not expect any material adverse impacts on the very healthy
growth of renewable energy in Western Australia. With strong support from the
government, the amount of renewable energy generated in Western Australia has
markedly increased in recent years. In the south west interconnected system alone, energy from large and small–scale
renewable generation increased from about 12 per cent in 2015–16 to about 21 per cent last
financial year. The government-owned electricity businesses are investing
in renewable energy, households are
investing in rooftop solar systems and major projects are being pursued
by private businesses. The government will continue to support the transition
to renewable energy. On 26 July, the government announced a $66.3 million
renewable energy technologies package to boost jobs in the renewable energy
sector and speed the state's recovery from the COVID-19 pandemic.
Secure and affordable supplies of gas will help ensure that the state has
secure, reliable and affordable energy as the transition to greater levels of
renewables goes forward.
(4) No. It is clear to all investors that renewable
energy is the most cost-effective source of energy in an ever-increasing
range of circumstances. Investors are also looking to renewable energy to
reduce their greenhouse gas emissions. The government expects that the cost of
renewable energy will continue to fall and its competitive position will
continue to improve.
(5) The
government is considering how to reduce Western Australia's greenhouse
gas emissions from all sources. We need to take a global view of what we do, as
it would make no sense to reduce the use of gas in Western Australia if that
only leads to the loss of jobs here and an increase in emissions in some other
parts of the world. The government wants Western Australia to become a world
leader in low emissions industries, and gas has a part to play in that.