Now that the new Labor government is in place, Australia can finally move forward with their plans for renewable energy. For years, the Labor party campaigned for energy investment in Australia, but due to former Prime Minister Scott Morrison’s conservative policies, the push for renewable energy has been slowed down. Now that they have a majority in parliament, they can instil the many policy changes that can get Australia back on track with renewable energy.
Australia’s new Labor government is expected to provide a major tailwind for investment in renewable energy sources as part of their Powering Australia agenda. They have previously signalled their intent to increase investment in renewables, which includes a goal of increasing the renewable energy capacity to 26GW, among other things. Some of the notable features of this agenda include:
- Reduce carbon emissions by 43% by 2030
- Have renewable energy sources account for 82% of on-grid generation by 2030
- Invest $20 billion in upgrading the country’s electricity grid
- Invest in clean energy component manufacturing, green metals, hydrogen electrolysers and fuel switching
- Roll out 85 solar banks and about 400 community batteries
- Provide stable financial support for improving energy efficiency
- Restore the Climate Change Authority and eventually introduce new annual Parliamentary reporting by the Minister
Addressing the Challenges of Renewable Energy
While the plan looks solid and will go a long way to addressing Australia’s issues with climate change, there are still many challenges that need to be addressed. For instance, the uncertainty in increasing connections with larger-scale projects is one of the biggest hurdles for rapid renewable build-out in the country. The Labor party is expected to address this issue by providing long-term policy certainty for investors and developers, but only time will tell.
It’s also worth noting that over the past couple of years, the transmission network in Australia has been struggling to keep up with all the surge in renewables in the past decade alone. This shows that the existing grid capacity was quite insufficient to meet the growing demand, so the new government needs to address these challenges as well.
Hopefully, the $20-billion investment through their Rewiring the Nation plan will be a good start to overhauling the country’s electricity grid and make its connectivity and capacity robust enough to handle the hundreds of thousands of new solar installations.
Clean Energy and the Electricity Market
The new agenda for renewable energy in Australia coincides with the recent report about the changing face of the market. The Renewable Energy Index (REI) released by Bloomberg shows that clean energy is becoming the biggest market in the country.
While there’s little to no support during the Morrison government, the Labor party is expected to provide the much-needed support to the renewable energy industry. This is great news for the renewable energy sector and is expected to bring many opportunities for investors in the years to come.
The Labor party’s ambitious renewable energy agenda is expected to bring a much-needed boost to the industry in Australia. It’s going to be a long road ahead, but they have shown they are serious about this agenda and are already laying the groundwork to implement the plan as soon as possible. This is good news for investors, as it will drive growth in the Australian renewable energy sector.
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