Clean power boost called
AEMO and energy industry leaders are calling for urgent clean energy action.
Top executives from Worley, Fortescue Energy, and DIRECT Infrastructure, a key player in offshore wind, are joining forces with the Australian Energy Market Operator (AEMO) to advocate for a radical overhaul of Australia's clean energy project delivery.
At the Financial Review Energy and Climate Summit, AEMO's CEO, Daniel Westerman, outlined the urgent need to replace ageing coal power plants, with two-thirds expected to shut down within a decade.
Westerman encourages developers to leverage government incentives to expedite project construction and gain community support for transmission projects.
Australia currently faces challenges in meeting its emissions targets by 2030 and avoiding blackouts.
A lack of progress in clean energy generation and transmission has raised concerns about summer blackouts and price spikes.
To address this, AEMO points to various government programs that offer financial incentives, such as state renewables targets, the national capacity investment scheme, and long-term energy service agreements.
Despite some progress, Australia remains far from its 82 per cent renewable energy target for 2030, with projections suggesting it may only reach 64 per cent.
Only four renewable energy projects reached financial close in the last quarter, and no wind or solar projects were approved for construction in the previous quarter due to delays in planning approvals and grid constraints.
Worley's CEO, Chris Ashton, has called for a “radical reimagining” of project delivery methods to bridge the gap between current renewable market share and the 82 per cent target.
Fortescue Energy's CEO, Mark Hutchinson, says momentum and acceleration are needed in the energy transition, acknowledging that these changes take time.
Peter Coleman, chairing companies in offshore wind and green hydrogen, says the shift from energy abundance to a globally competitive energy market requires government and regulator involvement to ensure supply security, green commitments, and affordability.
The Clean Energy Council is proposing a $100 billion, 10-year clean energy transformation investment package among 45 recommendations to the government, aiming to get Australia back on track for its 2030 targets.
They also advocate for a renewable energy superpower “masterplan”, complete electricity sector decarbonisation by 2035, extended renewable energy targets, and new national goals for rooftop solar, household batteries, and offshore wind.
AEMO's Daniel Westerman has called for increased collaboration between government and industry to secure community support for new transmission infrastructure.
Australian Energy Market Commission chair Anna Collyer agrees on the need for additional measures to manage rooftop solar and batteries and urges the establishment of a taskforce to drive changes in consumer energy resources.