The Clean Energy Council has published a new report underscoring the momentum of the clean energy industry as it adapts to new challenges and invests for the future.
Based on an extensive survey of industry insiders, the Renewable Energy Risk and Insurance Index, shows the increased scale and maturity of Australia’s clean energy industry, with more organisations operating across different technologies and jurisdictions, and delivering more complex projects.
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Battery storage is a clear example how the industry is evolving, with more than 85% of respondents now involved in battery storage projects.
The changing nature of the industry brings new challenges though, and the report highlights the need for nationally consistent approaches to state-level approval timings, expanding grid infrastructure, building workforce capacity, and engaging communities.
Developed in partnership with Lockton, the index received 213 responses from developers, investors, operators, and financiers.
The recommendations contained in the report include:
- Clearer, faster approval pathways including bilateral agreements between governments, risk-based conditions, and better-resourced assessment agencies, without lowering environmental standards.
- Clearer national guidance on benefit-sharing with local communities, to build genuine and consistent community partnerships during project development.
- Faster rollout of Renewable Energy Zones (REZs) and transmission projects, as well as continued reform through initiatives such as the joint Australian Energy Market Operator (AEMO)/CEC Connections Reform Initiative (CRI).
- Ongoing refinements to policy settings, including energy market rules, Capacity Investment Scheme (CIS) tenders, and the Safeguard Mechanism to give investors certainty, and reduce risk premiums and costs that ultimately get passed to consumers.
CEC CEO Jackie Trad said the findings from the survey reflected an increasingly complex operating environment for Australia’s renewable energy sector, at a time when the country needs to accelerate investment to meet growing demand and maintain energy security.
“The message from industry is clear: certainty attracts investment, jobs and opportunity, and uncertainty slows these down.
“With electricity demand growing and racing against the impending closure of Australia’s ageing and unreliable coal-fired power stations, the focus should be on removing barriers to investment and project delivery to the greatest extent possible, and to a high standard.
“We’ve seen encouraging steps from states and territories to improve planning and approvals processes without compromising environmental standards, while work to reform national environmental laws is also moving in the right direction,” Trad said.
“Work also continues between industry and governments on progressing several of the foundations for the proposals outlined in this report, including reform to grid connections processes and energy market rule changes among other initiatives.
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“Giving industry the confidence to deliver the projects that will power Australia’s future must remain a top priority.”
