Clean energy alarm as renewable installations slump despite big pipeline
Clean energy advocates have sounded the alarm after new figures showed plunging levels of large-scale renewable projects being installed.
Clean energy advocates have sounded the alarm after new figures showed plunging levels of large-scale renewable projects being installed in the March quarter, even as a pipeline of new solar and wind developments remains at high levels.
Just 165 megawatts of large-scale renewable capacity was installed in the first quarter of 2021, a drop of 76 per cent on the same three-month period a year ago according to the Clean Energy Regulator, while no major large-scale renewable energy project reached financial close.
The drop-off is of concern given the need for huge slabs of renewables as coal plants close, the Clean Energy Council said.
“This reflects a significant slowing in levels of investment, to levels we haven’t seen since 2016 when the Abbott government was attempting to abolish the renewable energy target. It highlights the growing risks, challenges and uncertainties facing investors in large-scale renewable energy projects,” Clean Energy Council chief executive Kane Thornton said.
“The challenges concerning grid connection combined with the continued political division, lack of clear targets and policy and unpredictable government interventions are all creating unacceptable levels of risk for investors.”
Still, a strong pipeline with probable projects backed by corporate power purchase agreements, but yet to reach financial close, grew to 3700MW and indicates intent within the industry to bring new facilities online.
“The Clean Energy Regulator maintains an expectation of between 2 and 3GW of large-scale renewables capacity reaching financial close in 2021. This is a similar level to 2020. The downside risk to this range is the difficulty, time and costs in getting connection approvals which may delay projects reaching financial close,” the CER said in a quarterly report.
Rooftop solar jumped 28 per cent with 792MW installed with up to 4GW of rooftop solar capacity expected to be added in 2021 across small and mid-scale rooftop solar.
Demand for green credits jumped in the March quarter as more corporates took steps to cut their emissions with demand for Australian Carbon Credit Units up 52 per cent with 174,000 credits voluntarily cancelled.
By 2035 nearly 90 per cent of power demand could be met by renewable generation during periods through the day. However, that will require up to 50 gigawatts of large-scale solar and wind to be added under the most aggressive plan to cut emissions, representing nearly all the current capacity of the market to be built in just two decades.
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