Delivering new renewable energy targets in South Australia will depend on a multi-billion dollar upgrade of transmission networks to help deliver this new clean energy to national electricity markets.

A new revised renewable energy target for South Australia of 33 percent by 2020 has been welcomed by the clean energy industry, reflecting the state’s considerable potential in clean energy generation.

However Clean Energy Council Chief Executive Matthew Warren warned that continued expansion of clean energy generation is already constrained by transmission capacity to the big energy markets in the eastern states.

“South Australia’s renewables future is promising and exciting,” Warren said, “South Australia currently hosts more than 50 percent of Australia’s total wind generation capacity and has benefitted from its ability to harness roaring 40s winds.

“The state has significant potential to develop a range of other renewable energy technologies by utilising its world class resources of sunshine, geothermal heat, waves and wind.

“But this growth will depend on a multi-billion dollar upgrade of the electricity infrastructure between South Australia and the eastern states.

“These constraints threaten to hold back expansion of larger scale clean energy technologies which in turn have the potential to lower electricity prices in South Australia and deliver much needed employment growth in key regional areas,” said Warren.

“The key challenge remains how this multi-billion dollar investment in upgrading Australia’s energy infrastructure will be funded,” Warren said. “This will impact the level of risk associated with investment in these new clean energy projects.”