Federal government/ South Australian Energy and Emissions Reduction Deal

Last updated: 30 January 2024

The Australian government and South Australian government agreed on the State Energy and Emissions Reduction Deal. 


This deal grants AUD 1.08 billion to add additional secure, affordable and low carbon energy generation capacity to the grid, and reach the Paris Agreement targets. It also targets a new interconnection between South Australia and New South Wales, as well as gas supplies (to prevent shortfalls on the market).


The plan includes: 

- additional 50 petajoules per annum of gas by the end of 2023, and 80 petajoules per annum by 2030

- AUD 400 million in Commonwealth funding for investment in carbon capture and storage, electric vehicles, hydrogen and other projects to cut emissions in South Australia 

- up to AUD 100 million joint support for Project EnergyConnect to boost the flow of power between South Australia and New South Wales

- up to AUD 110 million in Commonwealth concessional finance for solar thermal and other storage projects in South Australia.


The Commonwealth will provide AUD 660 million to the total budget, and South Australia will provide AUD 422 million.


Want to know more about this policy ? Learn more