Opinion & Analysis

In the first installment of a new monthly blog by IHS Markit, Edurne Zoco, executive director for clean energy technology, writes that high prices and increased freight costs are putting solar PV procurement teams under extreme pressure, particularly those teams with connection deadlines this year that were anticipating a more favorable pricing and logistic environment in the second half of 2021.

Whilst automated rebidding got some coverage from the most recent Australian Electricity Market Operator (AEMO) Quarterly Energy Dynamics, something else happened in the quarter that seemed to get less attention but is possibly much more important to operations for wind, solar and battery owners in the National Electricity Market (NEM).

In its latest report, IHS Markit predicts that energy storage installations in Australia will grow from 500 MW to more than 12.8 GW by 2030. Today, Australia makes up less than 3% of total global installations for battery energy storage and is the seventh largest market globally. By 2030, it is forecast to comprise 7% of global installations and become the third largest market. This growth will be largely driven by three distinct market segments: residential, standalone front-of-the-meter, and collocated with utility-scale renewables.

Charles Darwin University’s Deepika Mathur, and Imran Muhammad of Massey University in New Zealand reveal surprising results from their study into why Australians are retiring solar panels before their time, and what it means for our material footprint and the environment.

Last week’s announcement by China’s National Development and Reform Commission (NDRC) that it has indefinitely suspended all high-level economic dialogue with Australia indicates Beijing’s increasing willingness to target trade in its dispute with Canberra. With China buying around a third of everything Australia exports on a value basis, the downward spiral in Sino-Australian diplomatic relations is clearly of concern.

As the world acts on climate change and transitions to renewable energy, Australia has a once-in-a-century opportunity. Rich in renewable resources, we are in pole position to become a renewable energy superpower. But based on Tuesday’s federal budget, when compared to the investment other countries are making, we risk being left behind.

Professor John Quiggin from the School of Economics at the University of Queensland on where the federal budget falls down.

Last November, the NSW government announced its Electricity Infrastructure Roadmap which is expected to attract up to $32 billion in private investment for renewable energy infrastructure by 2030. The Roadmap aims to unlock 12GW of new renewable energy capacity from selected Renewable Energy Zones (REZs) with an additional 2GW in storage. Last month, the state government progressed its plans as it opened consultations on “specific urgent and mechanical policy details” on regulations needed to implement the Roadmap.

Australian governments are busy designing the nation’s transition to a clean energy future. Unfortunately, in a misguided effort to ensure electricity supplies remain affordable and reliable, governments are considering a move that would effectively pay Australia’s old, polluting coal-fired power stations to stay open longer.

The shift from 30-minute settlement to 5-minute settlement (5MS) is fast approaching – 162 days away but who’s counting.