South Australia is looking to revive two diesel electricity plants.

The government has says grid reliability is getting worse, while a $2.3 billion transmission project faces further delays.  

Energy and Mining Minister Tom Koutsantonis believes current forecasts by the Australian Energy Market Operator (AEMO) fail to account for additional setbacks to Project EnergyConnect, a 900-kilometre high-voltage interconnector linking South Australia to New South Wales and Victoria. Originally due in mid-2026, the project has fallen behind schedule.  

Koutsantonis has proposed rule changes to enable AEMO to direct the restart of the mothballed Port Lincoln and Snuggery diesel plants, which have a combined capacity of 138 megawatts. 

“Every state should have sufficient capacity to look after itself first,” he said.

Despite considerable renewable energy integration, South Australia faces grid stability risks during periods of low renewable generation. 

“The best way forward for the country is to have renewables firmed by gas,” Premier Peter Malinauskas says. 

“We will take whatever steps are necessary to ensure there is insurance within the system.”

Shadow Energy Minister Stephen Patterson said the push to restart diesel is a result of “poor planning”. 

However, energy specialists have endorsed the approach as a necessary safeguard. 

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