Confidence, more so than technological advancement or policy development, is seemingly what is needed if Australia is to hit its target of 82% renewable energy generation by 2030.
Investors in the rooms, and across the sector, wanted confidence that Victoria’s and Australia’s emissions targets and sustainability plans would be committed to, allowing the green energy goalposts to stop shifting.
Melbourne-based IFM Investors, one of the largest infrastructure investment and asset managers globally, has already tipped over $2 billion into renewable energy investments—albeit not in Australia.
Marigold Look, IFM’s Executive Director of Infrastructure, emphasised the “massive investment opportunity” of renewable energy, noting that while their investments have primarily focused on overseas markets such as Europe and the U.S., there is a strong appetite to invest in Australia once greater certainty and predictability in the market is achieved.
Investors also wanted confidence that the political splitting wedges between “conservationists” and “developers” as well as between “climate change action” and “biodiversity action” could be removed, and these goals aligned.
Overarchingly, however, the want was for confidence that increased investment in the renewables sector today would result in tangible positive returns for the planet, for the country, and for investors themselves in the short, medium and long term.
Thankfully, the audience’s wants were met.
The Minister for Climate Action, Minister for Energy and Resources, and Minister for the State Electricity Commission, Lily D’Ambrosio MP offered an assurance for confidence in the state government’s recent revised renewable energy blueprint, “Cheaper, cleaner, renewable: Our plan for Victoria’s Electricity Future”. The plan highlights a commitment to delivering clear policy direction, fostering community engagement, and ensuring robust transmission planning—all crucial elements in creating a stable and attractive investment environment.
Assurances of confidence were not offered without counterpoint or introspection, however, as seen by a forthright discussion between Peter Briggs (Herbert Smith Freehills), Kelly O’Shanassy, (Australian Conservation Foundation), Alex Wonhas, (EnergyCo, NSW) and Iwan Davies (Department of Planning, Housing and Infrastructure) on “Achieving Clean Energy Targets: Accelerating Planning & Environmental Assessment.”
The panel grappled with the need to balance renewable energy ambition with robust environmental protections. The speakers acknowledged the shortcomings of the EPBC Act, proposing solutions like national environmental standards to provide more certainty for developers.
Later, the recently enacted Capacity Investment Scheme (CIS) was also addressed and analysed at the conference.
Matt Brine, (Division Head, Office of the Capacity Investment Scheme, DCCEEW) outlined how changes to other jurisdictions’ climate policies (such as US Inflation Reduction Act) meant that competition for international capital was now higher than ever, and that uncertainty over the exit of coal from the energy mix was stifling investor confidence.
The CIS is a unique government policy tool, that was designed to quash uncertainty head-on.
The department’s analysis indicated that an underwriting tool like the CIS, would enable a quicker implementation than the current Large-Scale Renewable Energy Target certificate scheme, and would allow more flexibility than the Long-Term Energy Service Agreements that are currently used in NSW.
Brine assured the audience that the CIS will remain technology-neutral to allow the market to drive the most appropriate mix of technologies.
While tender programs like the CIS are driving strong project interest, managing project delivery will be crucial. Frontloading contracts, stringent milestones, and project readiness assessments were all suggested as ways to help mitigate risks, but the scope of resources required to power the energy transition served as the conference’s final guiding questions.
“Solutions for Mega Infrastructure” was the conference’s final panel and focused on the task of scaling Australia’s infrastructure for a clean energy future, with two key requirements outlined.
A collaborative approach to education and training would be necessary between government, industry, and educational institutions to develop comprehensive programs that prepare the next generation of renewable energy professionals, across all sectors from engineers to tradespeople.
Furthermore, in the more immediate term, Australia’s current workforce would need to be leveraged, upskilled, and reskilled – with increasing support for the energy transition among young Australians enabling this “mini-transition” to occur.
Increased interest in the renewable energy sector from a diversifying audience highlights the sector’s appetite to invest in energy transition projects. Hopefully, the pathways and recommendations offered at CEIC 2024 will give the sector the confidence to do so.