The South Australian Government has announced it will spend more than $500 million to build a new gas-fired power plant and Australia's largest battery as it moves to secure the state's energy supplies.

What's happening with power?

The government will build, own and operate a new $360 million, 250-megawatt gas-fired power plant

The government will build, own and operate a new $360 million, 250-megawatt gas-fired power plant Australia's largest battery will be built before next summer, by the private sector, and be funded from a $150 million renewable technology fund

Australia's largest battery will be built before next summer, by the private sector, and be funded from a $150 million renewable technology fund SA's energy minister will have the power to order a generator to be switched on if more supply is needed (a power held by the AEMO)

SA's energy minister will have the power to order a generator to be switched on if more supply is needed (a power held by the AEMO) A doubling of an already announced scheme to incentivise new gas supply for local generation

A doubling of an already announced scheme to incentivise new gas supply for local generation Land owners to receive 10% of state royalties generated from gas wells on their properties

Land owners to receive 10% of state royalties generated from gas wells on their properties There's a plan to supply "coal-rich" states with power generated in SA

Announcing the energy plan in the wake of blackouts and load-shedding, SA Premier Jay Weatherill said his government would take control by ensuring the energy minister was given powers to direct the market.

The plan would involve building, owning and operating a $360 million, 250-megawatt gas-fired plant to provide power grid stability and for emergency power needs.

The private sector would build Australia's largest battery before next summer, with a 100MW output, Mr Weatherill told a news conference.

The venture would be funded from a new $150 million renewable technology fund, he said.

"We think that a secure energy system should have multiple sources. It is a question of speed as well," he said.

"A battery could be delivered quickly, we are advised, but we want multiple sources of redundancy, if you like, in our electricity system so that we have got more service efficiency.

"The other thing with a battery, which is attractive, is that it can be done quite economically. The battery can become essentially a player in the market and, to some degree, pay for itself."

Gas-fired plant for emergency use

Energy Minister Tom Koutsantonis said the gas-fired power plant could be turned on "in an emergency" if an electricity shortfall was forecast.

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"It's about self-sufficiency, self-reliance for South Australia," he said.

"The first investment in a generation since the privatisation of ETSA [Electricity Trust of South Australia] will give South Australians greater control over their energy security."

Legislation is planned to give the state energy minister the authority to order a South Australian power generator be switched on if more supply is needed.

That authority is currently held by the Australian Energy Market Operator (AEMO), which was criticised during last month's brief load-shedding during hot weather for failing to direct that facilities at Pelican Point in north-west Adelaide be fired up.

The SA Government will double a previously announced incentive scheme for new gas supplies for local power generation, providing $48 million to gas companies for co-investment.

It said landholders could receive 10 per cent of state royalties generated from gas wells on their properties.

Mr Weatherill said the Government's energy plan would create at least 630 jobs.

"We're going to put people first. Our plan is to put downward pressure on prices," he said.

"The national electricity market is failing the nation and failing South Australia."

SA to supply eastern states with 'clean' power

The South Australian Premier said the state could no longer rely on the electricity interconnector with eastern Australia.

SA wants to secure its own interests, say Energy Minister Tom Koutsantonis and Premier Jay Weatherill. ( ABC News: Nick Harmsen )

"We have a situation where we are reliant on Victorian coal instead of SA gas ... on this side of the border. The stabilisation emerges because we have more generation on our side of the border, so we're not reliant on the Victorian interconnector."

Mr Weatherill said the citizens of SA wanted the Government to step up where the market has failed.

"We will supply the nation — coal-rich states like Queensland and New South Wales will be relying upon the clean, green power that we are developing here in SA."

The Premier said SA taxpayers would not be slugged for the energy plan and the money would come from budget surpluses.

"The commitment we have in this plan is to avoid blackouts and unnecessary load shedding, at its heart replacing Victorian coal with SA gas [and] making sure that SA power is reserved for South Australians," he said.

Mr Weatherill was critical of the private sector for a failure to invest in ageing power plants.

"We have got market failure here. We have next summer to grapple with. Some of the pressures may emerge before next summer. We need to act immediately," he said.

Mr Weatherill said he planned to brief the Prime Minister on what the state had decided to pursue.

State Opposition Leader Steven Marshall said he was disappointed with the Government's announcement, but said there were parts of the plan he supported.

"This is not a plan, this is a plan to increase the costs of every single energy consumer in the entire state, but more than that it's a bill," Mr Marshall said.

"The parts that relate to the policies that we have already announced we will support.

"We're pleased to see that Jay Weatherill has taken up our suggestion regarding storage. I mean welcome to the 21st century."