In Australia, the Clean Energy Council (CEC) has welcomed the New South Wales (NSW) Government's "bold new plan" to shepherd in 12 GW of new clean energy generation assets and 2 GW of energy storage by 2030, to take over from its fleet of ageing coal-fired power generation."This ambitious new plan sets NSW up to be Australia's number one destination for renewable energy investment over the coming decade," said Kane Thornton, Chief Executive, CEC.
On November 9, 2020, the Government of New South Wales (NSW) released its Electricity Infrastructure Roadmap for the state which is expected to generate more than 9 000 jobs and attract AU$32 billion of private investment into the region by 2030.
A coordinated framework, it is designed to deliver a modern electricity system for NSW as an estimated 75 percent of NSW’s coal-based power generation is expected to reach the end of its technical life within 15 years.
The Clean Energy Council (CEC), a not-for-profit, membership-based organisation that represents and work with Australia’s leading renewable energy and energy storage businesses, as well as rooftop solar installers, has welcomed the NSW Government’s “bold new plan” to shepherd in 12 GW of new clean energy generation assets and 2 GW of energy storage by 2030,
This is a comprehensive framework for NSW to take control of its clean energy transition and maximise the benefits for electricity consumers and regional communities, and we applaud the state government’s leadership, said Kane Thornton, Chief Executive, CEC.
Renewable resources and regional differences
According to CEC’s Clean Energy Report 2020, renewable energy sources (RES) accounted for 24 percent of Australia’s total electricity generation in 2019, an increase of 2.7 percentage points over 2018.
For the first time, wind overtook hydro in 2019 as Australia’s leading source for renewable power, accounting for more than 35 percent of Australia’s renewable power generation while bioenergy accounted for 6 percent.
Hydropower was the second largest, contributing 25.7 percent which was lower than in previous years due to the ongoing impact of the drought in eastern Australia and the massive growth experienced by wind and solar.
There are significant regional differences reflecting the differing natural resources of each region as well as the variations in historical commitments to support renewable energy.
For instance, in 2019 over 95 percent of electricity in Tasmania (TAS) came from renewable sources, (mainly hydro) compared to just over 17 percent in NSW or 14 percent in Queensland (QLD), the two states with the largest fossil generation assets.
Therefore, the CEC sees the NSW government’s plan as “transformative”.
This ambitious new plan sets NSW up to be Australia’s number one destination for renewable energy investment over the coming decade. This will be transformative for the central west and New England communities, providing long-term employment pathways in the clean energy sector and creating greater resilience for regional and farming communities through landholder payments and community benefit schemes. Importantly, it also demonstrates that the clean energy transition will not cost consumers more, but rather save households AU$130 per year on their electricity bills, said Kane Thorton.
Retire coal and phase in renewables
The roadmap lays out the NSW government’s 20-year plan to deliver Renewable Energy Zones, energy storage such as pumped hydro, and on-demand supply like gas and batteries, needed to reduce emissions and provide cheap, reliable electricity across the state.
It will provide tremendous confidence to private investors about when and where new generation is needed, while resolving a number of the key barriers to investment, such as access to the necessary transmission capacity, investment certainty through long-term energy services agreements and addressing slow and costly planning processes. In doing so, the Berejiklian Government will unlock AU$32 billion of new investment in regional NSW and support an estimated 6 300 construction jobs and 2 800 ongoing jobs, said Kane Thornton.
The CEC Clean Energy Report 2020 report also noted that the renewable energy industry was responsible for almost 23 000 jobs across the construction, operations, and maintenance and rooftop solar installation sectors in 2019. The latter reached 287 504 installations, the third-highest since 2012.
Furthermore, that 2019 was a huge year for the emerging renewable hydrogen industry, with AU$370 million in funding allocated under the National Hydrogen Strategy and the states delivering their own hydrogen strategies and projects.
The implications for existing generators within renewable energy zones should be considered to ensure that their value is not jeopardised. Other advanced prospective projects across NSW should also continue to be assessed on their merits. There will be much detail to be worked through over the coming months as the state looks to implement its vision, and the Clean Energy Council looks forward to working with the state government to support the smooth implementation of its plan, ended Kane Thornton.
