Power
The sun sets behind a pair of transmission pylons carrying high voltage power cables in Sydney December 7, 2009. Reuters/Tim Wimborne

The South Australian government announced it will build the country’s largest battery to ensure energy needs are met. It will spend $500 million for the project and a new gas-fired power plant.

SA Premier Jay Weatherill’s government ensures that the energy minister is given a direct authority to mediate in the electricity market, as well as the establishment of the $150 million renewable energy fund. In a news conference, Weatherill said Australia's largest battery will be built by the private sector next summer.

Weatherill assured that the energy project will put downward pressure on electricity prices and will provide reliable, affordable and clean power. “Our state has built its reputation on a clean, green environment and this plan recognises that clean energy is our future,” he added.

Legislation is being planned for Energy Minister Tom Koutsantonis to obtain the authority to order a South Australian power generator in case more supply is needed. The Australian Energy Market Operator currently holds this authority.

ABC reports that the SA government will also double an incentive scheme for new gas supplies. The move would provide $48 million to gas companies for co-investment.

Koutsantonis said Tuesday that the plan puts control of the energy system back in the hands of South Australian residents. “For too long South Australian households and businesses have been at the mercy of private companies seeking to maximise their profits and a national operator that manages our grid from Melbourne and Sydney,” the minister said.

The project will create about 650 jobs according to the minister. The energy plan comes after a statewide blackout in September. Sky News notes that 90,000 properties were intentionally blacked out when a load shedding was ordered by the Australian Energy Market Operator due to lack of supply.

It was unclear if the announcement is liked to an offer from Tesla Inc boss Elon Musk to use his company’s batteries to solve SA’s electricity problems. In a Twitter post, the billionaire tech entrepreneur shared that he already had spoken with Prime Minister Malcolm Turnbull regarding the proposal.

"The pair had an in-depth discussion on the value of storage and the future of the electricity system," the statement from the prime minister’s office reads. Musk and Weatherill also discussed the proposal. "Today I had a positive discussion with Elon Musk regarding his battery proposal," Weatherill tweeted. Opposition Leader Steven Marshall approved Musk’s offer and urged Weatherill to consider it.