Clean Energy Slump: Why Australia’s Renewables Revolution is Behind Schedule and How to Fix It

For years, Australia’s electricity sector has been a shining example of emissions reduction, achieving a remarkable 26% drop over the past 15 years. Renewable energy's share has surged from 7.5% to over 30% during this period. Yet, this impressive progress is insufficient to meet future goals.

The Current Challenge

In 2023, investment in renewable energy slowed significantly. Financial approvals for new solar farms fell by over a third, and no new wind farms secured backing. The number of renewable energy projects under construction decreased from 72 to 56.

Urgency for Acceleration

To achieve the federal government’s 43% emissions reduction target by 2030, we must accelerate our efforts. The goal is for the electricity sector to generate at least 82% from renewable sources by 2030, making electrification a viable alternative for sectors reliant on fossil fuels.

Key Issues Holding Back Progress

1. Inadequate Transmission Infrastructure New wind and solar farms require new transmission lines to deliver electricity to consumers. Currently, many renewable generators are forced to connect to existing, congested lines. The Australian Energy Market Operator estimates that 50% of the needed transmission for a clean energy supply by 2050 must be built within the next six years. Community opposition and planning bottlenecks further delay construction.
2. Uncertain Coal Phase-Out The timeline for coal generator retirement is unclear. Without certainty, new generators hesitate to enter the market. Additionally, state governments have made deals to keep coal plants open, further complicating the transition.
3. Lack of Government Coordination State and federal renewable energy targets are set in isolation, leading to inefficiencies. For instance, both New South Wales and Queensland have developed renewable energy zones in close proximity but without coordination, increasing overall costs.

A Path Forward

To navigate this policy quagmire, we recommend a more hands-on approach in the short term. Governments should intervene to coordinate new transmission, generation, and coal exits, ensuring a stable energy supply.

Post-2030, as electricity demand grows and the reliance on coal decreases, governments must design new market rules. This includes reassessing carbon pricing to guide gas-plant entries and exits, and better integrating distributed energy resources like rooftop solar and electric vehicles.

Australia can’t afford to stumble during this transition. Political leaders must ensure the delivery of clean, affordable, and reliable energy. The hard work starts now.

Source: theConversation.com Clean energy slump – why Australia’s renewables revolution is behind schedule, and how to fix?it

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