CEC calls for storage target over capacity mechanism

Energy storage concept image
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Clean, low-cost renewable energy and storage is the answer to Australia’s energy supply crisis, according to the Clean Energy Council.

The Clean Energy Council says Australia can adopt four key solutions that will accelerate the transition to renewable energy and energy storage, replace fossil fuel generation, and deliver a more reliable grid that protects consumers from high and volatile power prices. 

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  1. Power more households with clean, low-cost renewable energy 
  2. Modernise the electricity grid 
  3. Introduce an energy storage target 
  4. Drop the proposed capacity mechanism in favour of more clean energy.

“Australian households and businesses have just borne the brunt of an energy system built around the failing dirty technologies of the past – unreliable coal and expensive gas,” Clean Energy Council chief executive Kane Thornton said. 

“Everyone deserves access to affordable power. The bills of millions of low-income Australians and those living in government housing or renting could be reduced with targeted support to provide solar and batteries to those who need it most.” 

The Albanese Government’s Rewiring the Nation initiative, delivering much-needed investment in transmission, will be critical to bringing power from new renewable energy projects to customers. 

“Government needs to be looking at ways to bring more clean, low-cost renewable energy into homes and to power industry without paying unreliable and expensive coal and gas to stay open, which ultimately results in more expensive electricity bills.” 

The recent energy crisis has seen a push for a capacity mechanism—an intervention the Clean Energy Council says is unnecessary. 

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“Clean energy and storage can meet our energy and capacity needs and the technology is here now,” Thornton says.

“A storage target can accelerate the deployment of batteries, pumped hydro and other means of storing energy when it’s needed. A target worked for renewable energy in its formative years and can do the same for storage.”