Published On: November 29th, 2023
The Australian government is taking unprecedented steps towards achieving Net Zero by 2030. This comes from the lowest quarter of investment and growth in the renewable energy sector, per the Clean Energy Council (CEC.)
To take things forward, Chris Bowen, Energy Minister, has recently unveiled a 5x increase in potential investments with the Capacity Investment Scheme (CIS). This scheme is effectively deployed by the Department of Climate Change, Energy, and Environment (CCEEW.)
Kane Thornton, CEC Chief Executive, has officially stated the necessity to achieve 82% of the current electricity market share for renewable energy projects to achieve Net Zero.
With the CIS framework deployed as Contracts for Difference (CfD), the federal government is directly boosting the growth of renewable energy in Australia.
Renewable Energy Resources in Australia To Make It a Clean Green Superpower
The new expansion to the CIS attracts investments via competitive CfDs under the umbrella of the government. The projects will be fuelled by taxpayers, who will also be its critical beneficiaries in the long run.
Achieving net zero by 2030 will also augment growth in clean manufacturing of energy-intensive products ranging from aluminium to fertilisers.
With a production of 509 MW and upcoming initiated projects to add on 12.6 GW, renewable energy resources and generation need to increase by 7GW per year to achieve Australia’s renewable energy target by 2030. CIS will act as the federal platform for regulated investments into renewable energy resources in Australia.
What Renewable Energy in Australia Means for its Present Economy and Industry
While modifying towards renewable energy is a primary goal, it demands constant sustainable upgrades and changes to existing infrastructure.
As Australia firmly shifts from coal and fossil fuels to renewable energy resources like Solar, Wind, and Hydro, a concurrent demand for complementary tech, skills, and products will gain traction at scale.
Experts welcome this bold green move by the Australian federal government, setting standards for larger bodies and governments across the globe. But they also ask for more grassroots efforts to bolster the movement and effectively cement its success.
While renewable energy in Australia is slated to become one of the largest industry sectors for the rest of this decade, essentially funded by the government, the crucial challenge will be to deliver the goods and services this industry will need to grow sustainably.
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