Australia's Federal Government Signs $1Bln Energy Contract With Regional Authorities

MOSCOW (UrduPoint News / Sputnik - 18th April, 2021) Australian Prime Minister Scott Morrison announced the signing of a new 1 billion Australian Dollar (approximately $773 million) bilateral energy and emissions contract on Sunday between the Federal government and the South Australian regional authorities, led by Premier Steven Marshall.

"The Morrison and Marshall Governments have signed a $1.08 billion State Energy and Emissions Reduction Deal that will deliver secure, reliable and affordable energy to South Australians and help Australia continue to meet and beat its emissions reduction targets," a press release by the prime minister of Australia reads.

The deal will aim to deliver affordable and reliable power, unlock gas supplies in order to prevent shortfalls in the market, kick-start works on a new interconnector between South Australia and New South Wales, and invest in key emissions reduction projects.

According to the press release, the federal government will contribute $660 million to the deal while South Australia will provide $422 million.

Morrison said that Australia is doing everything it can to combat climate change by getting more gas into the market to support the increase in renewable solar and wind power coming into the electricity system by delivering lower cost, lower emissions and lower power.

"This deal also makes sure that Australia gets ahead and stays ahead in the new energy economy by supporting the next wave of technologies, with a $400 million commitment for investing in key areas that have the potential to deliver new industries and opportunities for South Australians," Morrison said.

The prime minister also added that the deal aims to bring more jobs into the market and will be a key driver in Australia's journey to economic recovery from the COVID-19 crisis.

"Put simply - this agreement is going to lower power bills for South Australians and create jobs in the fast growing renewables industry," Marshall added.

The press release also reads that the Morrison government is continuing to operate with state and territory governments to establish agreements that accelerate cooperation on energy and emissions reduction projects.