Finance

As the deployment of renewable energy continues to expand around the world, driven by various inputs, such as capital allocation and investment, falling capital costs, competitive LCOE and various policy mechanisms, we are now moving towards a new era for renewable energy. ‘Renewables 2.0’ will have significant, wide-ranging consequences for all market players, as regulators reduce their support and power producers seek new revenue models. In this article, Duncan Ritchie, partner at Apricum – The Cleantech Advisory, will look at the key market developments for renewables, explode the myth of grid parity, highlight the need for flexibility and explain the importance of new financing solutions that are capable of meeting the new complexities brought about by ‘Renewables 2.0’.

While global coal mining companies are enjoying the highest prices in years on the back of strong Asian demand, banks and financiers are increasingly ending their support for coal power. London-based Standard Chartered the latest to stop financing new coal-fired stations.

The Dunsborough Community Energy Project is announced as Australia’s first privately funded virtual power plant.

With its license to sell electricity in Victoria still at risk after failing to provide performance data to the state energy regulator, AGL Energy has been hit with a record penalty for breaching its obligations under Victoria’s energy efficiency scheme.

Despite economic hardship caused by record numbers of solar PV installs that have led to a fall in residential demand, Western Australian state-owned retailer Synergy has posted an after-tax profit of $24.3 million for 2017-18.

U.S. firm SolarReserve is moving on its massive solar thermal plant project in South Australia having signed a memorandum of understanding with local outfit Heliostat SA.

Through the listing on the French stock market, the independent power producer hopes to raise enough capital to increase its renewable energy assets from 2 GW to 5 GW. Impala intends to subscribe to the offering and remain majority shareholder.

Renewable energy set a new record level in August with 25.6% of electricity supplied across the NEM, according to a new report by a progressive think-tank, The Australia Institute. This volume of new generation is likely to significantly increase competition in the wholesale market, thereby putting downward pressure on prices, the report finds.

Renewable energy sources, notably solar and wind, are reaching price and performance parity on and off the grid, shows a new Deloitte Global report, highlighting seven trends that are driving this transformation.

Applications have officially opened for 50% rebates on rooftop solar installations under the Victorian government’s Solar Homes program, announced just weeks ago. The subsidies will be available until 30 June next year.