In a recent report by the Clean Energy Council, titled “Power Playbook – Accelerating Australia's Clean Energy Transformation,” the trade body has emphasized the need for the Australian government to commit to a substantial investment of AU$100 billion (US$64 billion) over the next decade to secure its international competitiveness as a producer of renewable energy and green value-added commodities.
The report, which contains 45 recommendations to the Federal Government of Australia, aims to ensure the country achieves its ambitious target of reaching 82% renewables by 2030. Among these recommendations, the Clean Energy Council highlights the necessity of developing a “Renewable Energy Superpower Masterplan” for Australia. This masterplan would provide a national framework for both the domestic transition to clean energy and international opportunities for renewable energy expansion.
Clean Energy Council's Chief Executive, Kane Thornton, stressed the importance of sparking serious discussions and concerted efforts to establish such a masterplan. He believes that this approach will help direct national resources and fulfill Australia's aspirations in the clean energy sector.
One notable recommendation from the Clean Energy Council report is the creation of an Australian counterpart to the U.S.' Inflation Reduction Act (IRA). The report argues that without such legislation, Australia risks falling behind in the global race toward decarbonization and could lose private investments in renewables to other competitive markets. A comprehensive analysis from the Centre for Future Work suggests that an equivalent scale of the IRA would necessitate an Australian government investment ranging from AU$83 billion to AU$138 billion, aligning with the Clean Energy Council's AU$100 billion recommendation over the next decade.
Achieving the target of 82% renewables by 2030 will require Australia to significantly increase its annual financial commitments. This includes the development of 6 to 7 gigawatts of utility-scale renewable projects annually from 2024, as well as 3.5 gigawatts of rooftop solar installations per year until 2030. Rooftop solar, which has experienced robust growth in recent years with annual installations of 3 gigawatts, will need to further increase its target to 3.6 gigawatts of annual deployment until 2030. According to the Australian Energy Market Operator (AEMO), rooftop solar must reach 37 gigawatts of installed capacity by 2030 and 55 gigawatts by 2040, a significant leap from its current cumulative capacity of 17 gigawatts.
To accomplish these ambitious forecasts, the report emphasizes the importance of a coordinated program that rewards distributed solar and storage utilization in the wholesale market and ancillary services markets.
Additionally, the Clean Energy Council recommends that the Australian government prioritize investments in green hydrogen and minerals processing market opportunities over the next decade. With Australia's status as a low-cost power producer diminishing, it faces competition from emerging markets such as Chile and Saudi Arabia, which are positioning themselves as powerhouses for the production of green hydrogen.
The Clean Energy Council's report underscores the critical role of substantial government investment and strategic planning in ensuring Australia's competitiveness in the global clean energy transition, as well as its ability to meet ambitious renewable energy targets.
