Finance

The developed world is facing scenarios of zero economic growth or even recessions, as inflation, energy costs, interest-rate rises, and tougher lending criteria makes life tough for business. But money is flowing into the energy transition by scaling and commercialising existing technologies, reports pv magazine’s Tristan Rayner.

Energy giant AGL has disclosed it will shutter its gas-fired Torrens Island B power station in South Australia within four years, citing the impending completion of a new electricity interconnector that will link power grids across three Australian states, unlocking gigawatts of new wind, solar PV and storage projects.

Queensland-based ReNu Energy has announced “firm commitments” for a capital raising of $4.5 million (USD 3 million) which it says will progress its green hydrogen projects in both Brighton and Launceston in Tasmania, as well as in Indonesia’s Riau Archipelago.

The Clean Energy Finance Corporation, effectively the federal government’s green bank, has been allocated a further $500 million (USD 332 million) to invest in the commercialisation of renewable energy, energy efficiency and other technology innovations.

Dutch company Photon Energy Group has acquired its first utility scale solar and battery project, opting for a venture 500 kilometres northwest of Sydney which it says will become a “prototype” for its European portfolio.

Cofounder of Quinbrook Infrastructure Partners, David Scaysbrook, says the US Inflation Reduction Act can make Australia a green energy superpower – but not in the way we expect. The policy will fundamentally undercut Australia’s competitiveness exporting green hydrogen, but offers giant opportunities for critical materials. Scaysbrook also expects Australia’s 2023 to be lean in terms of renewable investment, especially when it comes to “vanilla” projects.

Australia’s Origin Energy is the target of an $18.4 billion (USD 11.3 billion) takeover bid by a consortium led by Canadian investment giant Brookfield Asset Management which plans to divide the business and invest another $20 billion by 2030 to support the gen-tailer’s transition to clean energy.

Queensland-based independent power producer ReNu Energy and aspiring green hydrogen manufacturer Countrywide Hydrogen will seek to advance its renewable hydrogen projects from concept to production after Australian superannuation fund HESTA agreed to invest up to $100 million (USD 64 million) to develop the facilities.

Corporations in the Asia-Pacific region are set to contract a record 7 GW of renewable capacity in 2022, according to a new report by Wood Mackenzie. Solar accounts for 57% of the region’s contracted corporate renewable power purchase agreements (PPAs) to date. India, Australia and Taiwan account for 89% of overall capacity in the region.

Australia has paid just 38% of its “fair share” towards the internationally agreed climate finance target. The revelation speaks to the issue of fairness – a key topic at COP27, currently underway in Egypt. But Australia’s premier renewable energy event offered little hope that questions of equity and deep sustainability are being considered here, even by the architects of our own transition.