If you only looked at certain sections of the media and news cycle, you’d be forgiven for thinking that renewable energy was a new, untested technology suite. Clean Energy Council Chief Executive Kane Thornton writes.
But renewables are prevalent all over the world, including in Australia. They are proven and are already generating more than 40 per cent of our electricity.
Whenever the headwinds facing the industry seem insurmountable, I remind myself that despite those challenges, Australia has doubled the amount of renewables in the system in just five years.
With a Federal Election set for early next year, it is hugely important Australia continues to invest in and accelerate the amazing transition that is well underway.
This includes creating jobs, boosting local economies, supporting farmers and putting downward pressure on energy bills.
There is no feasible ‘plan B’ for energy in our country.
Renewable energy is here now and it is the future.
Trending upwards
So far, 2024 has offered plenty of evidence for why we should remain confident in the transition.
According to our Renewable Projects Quarterly Investment Report for Q3 this year, investments in new generation projects continue to trend upwards, at $3.3 billion from July to September alone. That quarter brought more investment than the entirety of 2023. The rolling 12-month quarterly average for capacity of financially committed generation projects has now increased for three quarters in a row.
In addition to these trend-indicating factors, we have also seen positive practical developments.
In October the first turbine was switched on at what will be the largest wind farm in the Southern Hemisphere: Golden Plains in Victoria. Once complete, that project will produce enough energy per year to power 765,000 homes – around 9 per cent of Victoria’s energy needs.
October also saw the record for instantaneous renewable penetration broken, with renewables reaching more than 73 per cent for a short time in early October, primarily driven by rooftop solar. The lights stayed on, and power prices fell.
On the policy front, we saw the New South Wales Government doubling down on its support for long-duration energy storage (LDES), following a review into the sector. The announcements closely matched those the Clean Energy Council has been advocating for, including increasing the current target for LDES in NSW by more than 40 per cent and retaining the definition of 8 hours for LDES in the NSW Energy Act, which will be key to maintaining certainty for investors.
Long-duration energy storage is one of the crucial technology solutions to help support the growth of variable renewable energy like wind and solar, maintain energy security and minimise price impacts for consumers. As ageing coal generators exit our energy system, Australia must embrace new ways to provide equivalent energy and system services, and LDES is perfectly suited to meet those needs.
Celebration and reflection
Having made our way past 40 per cent renewables and heading now for 50 per cent, it’s only right that we celebrate the progress made.
From being a renewable energy laggard just a few years ago, Australia is now undergoing one of the fastest energy transformations in the world.
It’s also important to reflect on the huge amount of work that still needs to be done and acknowledge that while renewable energy is growing in Australia, we are not yet at the pace needed to achieve 82 per cent by 2030 and replace coal and gas as it phases out.
According to the Integrated System Plan published earlier this year by the Australian Energy Market Operator, we need to triple variable renewable energy by 2030 and increase it six-fold by 2050. To do that we need to address the headwinds the industry is facing, which include:
Developing a clean energy workforce (which I wrote about in the October issue of ecogeneration)
Reforming planning and environment regimes and approvals processes
Securing community support through benefit sharing, including stronger communication and education
Speeding up and securing grid connections
Building out the transmission network
None of these areas has a quick fix and all are complicated by different factors in different jurisdictions.
Many require thinking outside the box, and I was enthused coming away from the recent All Energy Australia conference when I heard many attendees and speakers acknowledging that and proposing smart solutions.
The industry must get better at listening to communities, articulating what it plans to do and why, and partnering with communities on what real benefits look like to them.
We must remember that ‘social license’, which we hear so much about, is not an end goal to be won, but a relationship built and nurtured over time, earned with trust.
We must acknowledge the stresses and impacts infrastructure projects can cause and find solutions. For instance, Australia’s soon-to-be-closing coal-fired power plants currently employ around 10,000 highly skilled workers with experience in the energy sector. They are prime candidates to join the clean energy workforce.
We also need to be alert and ready to respond when bad policies are suggested, such as the proposed reinstating in Victoria of controversial development restrictions on wind farms, which would hamper progress at the precise time projects need to be accelerated.
Renewable energy future
At the Clean Energy Council are committed to reporting on the state of the sector. That analysis is important to remind Australians that renewables aren’t a pie-in-the-sky plan but a current reality, already generating more than 40 per cent of our electricity.
This is a once in a lifetime transition, with an enormous amount at stake for us as a nation, and for the planet. We can achieve a smart, low-cost energy system that can power our lives and our economy. We can create thousands of jobs and revitalise rural and regional areas. We can cement our role as a global energy superpower.
There is plenty to do and I am confident that by working with our colleagues in industry, governments, non-governmental organisations, the education sector and right across the community, we can and will build a fully renewable economy in Australia.
This article featured in the December edition of ecogeneration.
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