Policy

Australia is geologically equipped to become a battery critical-minerals hub but the nation is stumbling upon sticky structural issues. Sensitive diplomatic and trade ties, delicate forests and ecosystems, and a devotion to free markets and small government are among the major hurdles, writes Bella Peacock.

A “major influx” of new renewable generation and storage capacity is poised to connect to Australia’s main grid with the energy market operator revealing almost 150 projects representing more than 31 GW of new capacity are in the application and pre-registration stages.

Victorian network operator AusNet has commenced construction of a transmission network upgrade that is expected to reduce generation constraints and improve network stability in the state’s southwest, unlocking 1.5 GW of additional renewable energy generation capacity.

Authors of the “World Nuclear Industry Status Report 2023” define the future role of nuclear energy in the global energy mix as “irrelevant” and “marginal.” The authors add that there were 407 operational reactors producing 365 GW in the middle of the year, which is less than installed capacity predictions for solar by the end of the year.

A number of Australian critical minerals, including lithium, miners and refiners will likely be ineligible for IRA subsidies after the US government published its draft rules forbidding access to enterprises with over a 25% stake held by Chinese companies or “cumulatively” by Chinese investors.

Australia is among more than 100 countries that have committed to triple the world’s renewable energy generation capacity within six years, signing a pledge on the sidelines of the United Nation’s COP28 climate summit being staged in the United Arab Emirates.

The Western Australian government has just allocated $220 million to support Griffin coal mine, so operations may continue until June 2026. The funding was announced by Premier Roger Cook and the Minister for Energy, Mines and Petroleum Bill Johnston, who earlier announced he is stepping down from cabinet last week.

The Victorian government will repay, with interest, electric vehicle owners who paid a road-user charge later deemed unconstitutional by Victoria’s High Court.

Investment in Australia’s renewable energy sector is more than 10 times lower than where it should be to reach 2030 targets, according to the Clean Energy Council calculations. Australia’s “sluggish” large-scale segment is the result of a confluence of issues, and illustrates the urgent need for the federal government’s newly supercharged Capacity Investment Scheme.

Wood Mackenzie says in a new report that China could install 230 GW of PV and wind capacity and export more than 200 GW of solar panels in 2023. Unlike Europe and United States, the country is avoiding the high curtailment of PV and wind.