Clean Energy Council

In yet another confirmation of a dramatic drop in spending on large-scale renewables in Australia, a new analysis by the Clean Energy Council reveals a fall from 51 projects worth $10.7 billion in 2018 down to 28 projects worth $4.5 billion in 2019. Mounting regulatory risks, under-investment in transmission and policy uncertainty are the main reasons behind investment slow-down, which is set to put greater pressure on reliability and power prices as Australia’s old coal-fired power stations continue to close.

Singapore-based developer Vena Energy has announced that it will soon begin construction of Queensland’s largest grid-scale battery near Wandoan in the Western Downs. The 100 MW/150 MWh project will be delivered under a 15-year power purchase agreement with Australia’s biggest power producer, AGL.

To fill the gap left by retiring coal-fired plants, the Australian Energy Market Operator forecasts that Australia should invest in a further 30-47 GW of new large-scale wind and solar projects by 2040. At the end of the outlook period, AEMO projects that distributed energy resources could provide up to 13% to 22% of total underlying annual NEM energy consumption.

A survey run by the Clean Energy Council shows confidence in new clean energy investment continued to weaken over the past six months. While a big majority of industry representatives expect to hire more staff in the next 12 months, the biggest challenges to developing new projects remain unchanged with grid connection process and technical requirements and policy uncertainty at the top of their list of concerns.

Under the Electricity Strategy released on Friday, the NSW Government has unveiled a plan to deliver Australia’s first coordinated Renewable Energy Zone in the Central-West, seeking to support the new generation needed to get energy bills down. The administration has also pledged to give NSW one of the world’s highest reliability targets to cope with the changing electricity mix and unexpected generator outages.

Ernst & Young Australia (EY) are calling for a significant capital injection into the Australian Energy Market Operator (AEMO) at this week’s COAG Energy Council meeting. EY wants to expand AEMO’s powers toward fixing the nation’s embattled energy grid.

The Clean Energy Council (CEC) is pushing for the COAG Energy Council to address the dramatic slowdown in investment in large-scale renewable energy when it meets this Friday, 22 November. The CEC believes the slowdown is the industry’s highest priority.

In late 2016, Queensland’s Labor Government revealed a plan for 50% of the State’s electricity to be renewably sourced by 2030, and the state has made significant steps toward that goal.

The Morrison government has extended an extra $1 billion to the Clean Energy Finance Corporation to invest in energy storage projects, transmission and distribution infrastructure and grid stabilizing technologies.

The Federal and the New South Wales governments will jointly contribute $102 million to increase the capacity of an existing interconnector between New South Wales and Queensland in the run-up to the planned closure of the Liddel coal generator in 2023.