Investment in renewables hits $10bn in Australia
Australia was the world’s fifth-biggest investor in renewable energy projects last year.
Australia was the world’s fifth-biggest investor in renewable energy projects last year, spending almost $10 billion, and had the second-highest use of solar-generated electricity per person.
But as investment in renewables surged in Australia in 2018, spending fell 11 per cent worldwide, prompting concerns the pace of global energy transition has stalled.
In a major review of the renewable energy market, a UN-backed report by the REN21 think tank said renewable energy including wind, solar, geothermal, biomass and ocean power still made up only 2 per cent of the world’s energy consumption.
The share was higher for electricity, with solar providing 2.4 per cent and wind 5.5 per cent.
But the actual share of electricity delivered was probably much lower because wind and solar only deliver about one third of their rated capacity, unlike coal and gas which is generally higher.
REN21 executive secretary Rana Adib said the renewable energy market was “going in the right direction” but was “far from on track”.
“It is clear investment has not gone up and the acceleration of the renewable energy market has not grown enough,” she said. “While there has been much progress on renewables, energy efficiency, and access to electricity and clean cooking facilities over the past decade, the world is not on track to meet international goals, most notably limiting the average rise in global temperatures to 1.5C as stipulated under the Paris Agreement.”
A total of $US288.9bn was invested in renewable energy across the planet in 2018, down from $US326.3bn in 2017.
Investment in solar accounted for $US139.7bn and wind $134bn. China was the biggest investor with $US91.2bn despite regulatory changes which crimped solar.
The US invested $48.5bn, Japan $US18.3bn (down 19 per cent), India $US15.4bn (down 11 per cent), and Australia $US9.5bn. Europe invested $US61.2bn.
Ms Adib said investment in Australia in 2018 had been “extremely positive with investment in solar and wind up significantly”. Unlike in other places, the energy intensity of the Australian economy, the amount of energy used per unit of economic activity, had also gone down. But Ms Adib said there were significant challenges ahead to develop infrastructure to accommodate increased amounts of renewable energy.
Energy and Emissions Reduction Minister Angus Taylor said the Morrison government recognised an increasingly large share of Australia’s energy needs were being met by renewables.
“Over a third of Australia’s electricity will come from renewables by 2021,” he said. “While renewable energy is playing an increasingly important role in meeting Australia’s energy needs, intermittent wind and solar generation needs to be backed by dispatchable generation and storage to keep prices down and provide reliable, affordable 24/7 power.
“We are requiring retailers to guarantee there is enough power to meet demand, even when the sun isn’t shining and the wind isn’t blowing.”
The big picture from the REN21 report was that, despite the billions spent on renewable energy around the world, it has not been enough to displace energy from fossil fuels in percentage terms.
The other big message from the report is that renewable energy has failed to make inroads into areas other than electricity such as transport and heating.
The report said global energy related carbon dioxide emissions grew an estimated 1.7 per cent in 2018 due to increased fossil fuel consumption.
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