Renewable Energy Boost Coming to Victoria and Tasmania
Minister for Climate Change and Energy Chris Bowen stated that the goal of the initiatives is to lower energy costs for Australians.
The federal government has revealed plans to allocate 1.7GW of a major renewable energy project tender in Australia to enhance energy sources in Victoria and Tasmania.
Tasmania is set to receive a minimum of 300MW of new renewable energy projects through this tender, while Victoria will receive 1.4GW, sufficient to power approximately 700,000 households.
“Victoria has taken significant steps to increase the presence of affordable renewables in the grid,” Minister for Energy and Resources Lily D’Ambrosio remarked upon welcoming the energy agreement.
“It’s encouraging to have the support of the Commonwealth government in furthering the development of additional renewable energy projects and providing affordable and reliable energy to homes and businesses throughout Victoria.”
D’Ambrosio highlighted the state’s objective of reaching a 95 percent renewable energy target by 2035, which can be achieved through collaborations with industry and private investments.
Minister for Energy and Renewables Nick Duigan also expressed gratitude for the Tasmanian energy deal.
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“I am looking forward to collaborating with the Australian Government to finalize the Tasmanian CIS agreement,” Mr. Duigan stated. “With a history of strong renewable energy, the CIS will help drive our renewable energy future to meet the increasing demand and make a significant contribution to the national energy transition.”
The energy enhancements are a part of the Reliable Renewable Plan, designed to unlock and expedite new energy investments in individual states.
The federal government aims to secure 32GW of reliable renewables by 2030 under the Capacity Investment Scheme, comprising 23 GW of renewable energy generation and 9 GW of dispatchable storage capacity.
This is the primary policy measure adopted by the Australian government to achieve a renewable energy target of 82 percent in the electricity grid by 2030.
As per the scheme, the government will solicit bids for six monthly competitive tenders until 2027, with the final auction winners being announced in December.
The Australian Energy Market Operator has been appointed as the service provider to manage the CIS competitive tender processes.
At least 2.2GW is designated for New South Wales, which urgently requires new capacity as the country’s largest coal fleet is nearing shutdown over the next decade.
Other recent energy agreements include deliveries of a minimum of 300MW for South Australia and 500MW for Western Australia, leaving Queensland without a specified allocation.
The remaining 1.8GW of the total 6GW of new variable renewable energy projects will be awarded to the next best bids.
Minister for Climate Change and Energy Chris Bowen emphasized that the energy agreements in Tasmania and Victoria will ensure energy security and dismantle obstacles hindering the integration of renewable energy.
“Our focus is on reducing energy costs and enhancing reliability by encouraging significant private investment in reliable renewables across Australia,” Mr. Bowen explained.
Coalition Calls for Nuclear
On the other hand, the opposition has advocated for the inclusion of nuclear energy in Australia’s renewable energy transition.
“So, I would look at the independent, verifiable evidence. That all points to us having a transition to a zero emissions latest technology nuclear, where we can firm up renewables in the system.”
Push for Nuclear Power Criticised
However, Mr. Bowen criticized opposition leader Peter Dutton’s push for nuclear power, arguing that it would only burden taxpayers further.
Some analysts also disagree with Mr. Dutton’s advocacy for nuclear power.
“Nuclear power is an expensive electricity generation option,” said Johanna Bowyer, Australian Electricity Lead Analyst at the Institute for Energy Economics and Financial Analysis.
“It’s expected that establishing a nuclear small modular reactor (SMR) in Australia would take a long time—around 15 years. Therefore, this option would not assist Australia in swiftly replacing retiring coal-fired power stations, all of which are set to retire over the next 15 years according to AEMO forecasts.”
Ethinvest Philanthropy Director Blair Palese concurred, calling the campaign for nuclear power nothing but a distraction.
She expressed to The Epoch Times that the Coalition had hindered Australia from seizing the economic and job opportunities presented by decarbonization due to the influence of the coal and gas industry.
Ms. Palese praised the Albanese government’s Future Made in Australia Act but expressed disappointment over the Future Gas Strategy.
“Unfortunately, the government’s gas announcement endorsing new gas projects until 2050 is an egregious negation of any climate efforts it has taken and reveals a serious lack of understanding regarding the necessity to establish a clear trajectory for businesses and investors to take advantage of the incredible opportunity of global decarbonization.”
Ms. Palese stressed that Australia possesses the natural resources required to transition to clean energy but noted that lack of leadership and appropriate investments are acting as barriers.
“Beyond transitioning to clean energy domestically, Australia has the chance to become an exporter of low and zero-carbon solutions like green hydrogen and ammonia, green iron ore, and batteries that other countries, including our Asian trading partners, need to meet their own net zero commitments,” Ms. Palese remarked.
“While I believe the current government recognizes this, it remains unclear if it can overcome the influence of fossil fuels swiftly enough to ensure seizing this opportunity.”
