Renewables transition requires gas, says state energy boss
South Australia will need to “firm” its energy supply as it edges closer to 100 per cent net renewables, says the head of the state’s Department for Energy and Mining.
Paul Martyn, who is chief executive of the Department for Energy and Mining, said South Australia is on track to reach 100 per cent net renewables by 2027.
Addressing the Committee for Economic Development of Australia’s (CEDA) SA Energy Outlook 2025-2026 yesterday at the Hilton Adelaide, Martyn said that alongside Denmark, South Australia is the world’s leader in renewable energy.
“Energy policy is economic policy in today’s day and age. So, how South Australia treats and deals with its energy system is directly related to our economic ambitions as a state,” he said.
Martyn said that South Australia currently runs on 45 per cent wind, 29 per cent solar and 24 per cent gas.
He said that as South Australians continue to purchase solar panels, electric vehicles and home batteries in increasing numbers, one of the biggest challenges would be how to harness this energy.
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“People love their consumer energy resources and are doing more of it. And so, we need to be thinking about, ‘How do we manage this?’. Because the problem that could create is the infamous duck curve,” he said.
According to the Australian Energy Council, a duck curve refers to the steady decline of operational demand during daylight hours as a result of increased reliance on solar energy.
“Once the rest of the generation of the system gets that low, we start to create risks of volatility and risks to the system being stable, and potentially to blackouts,” he said.
He said weather also plays a part in this volatility.
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“In a space of a week in the middle of winter, the weather dramatically affects our energy mix,” he said.
South Australia would therefore need to “firm” renewables to ensure a reliable supply of energy, as set out in the state government’s Firm Energy Reliability Mechanism, he said.
This includes through the use of community batteries, the continued use of gas and encouraging people to use more energy in the middle of the day.
“We are, as a state, going to have to think about how we manage this diverse energy mix, and we are managing it. But the challenges of ensuring that we have that gas in a role to come in when we need it is important,” he said.
He pointed to the Energy Master program, as well as the Virtual Power Plant and emPowering SA community battery initiative, as helping to achieve more reliable and cheaper energy in South Australia.
“I’ve got to be really honest with you – the South Australian government does not set electricity prices; they are set by a national regulator,” he said.
“What we can do is give people the ability to control their energy use and to reduce the total amount they pay for their energy.”
