Energy reality smacks South Australia in the face

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South Australia is regarded as the nation’s leader in renewable energy, with the highest penetration of wind and solar generation in the country.

South Australia closed its last coal-fired power plant in 2016 and now generates more than three-quarters of its electricity from wind and solar.

However, the shutdown of its baseload coal power plants has left the state largely reliant on costlier sources, including gas, batteries, and diesel, which has raised the average wholesale electricity rates in the state.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.