Renewables power drive towards Paris targets

The Clean Energy Regulator has forecast more than 59 million ­tonnes of carbon dioxide abatement this year.

Energy and Emissions ­Reduction Minister Angus Taylor. Picture: AAP

The Clean Energy Regulator has forecast more than 59 million ­tonnes of carbon dioxide abatement this year towards the Paris Agreement targets on the back of a record renewable investment surge.

Data released by the regul­ator on Wednesday reveals 25 per cent of electricity last year came from renewables, which was predicted to increase to 34 per cent by 2023, contradicting claims that ­investment in renewables was collaps­ing.

CER chairman David Parker said the latest quarterly carbon market report showed that total renew­able investment grew to 6.3 gigawatts last year but flagged that the mix of renewables would “likely differ” in 2020.

Mr Parker said the report, which highlighted the combined Renewable Energy Target and Emissions Reduction Fund, had delivered more than 50 million tonnes of carbon dioxide abatement last year towards the Paris projections, and demonstrated that the RET had not acted as a cap on renewable investment.

“On the contrary, the market is finding a way to maintain investment levels,’’ he said. “Including rooftop solar, the RET generated almost 44 terawatt hours in 2019 and we expect to see the biggest step up to 56TWh in 2020.’’

The ERF issued a record 14.8 million Australian carbon ­credit units last year, with expectations that the number issued would rise to more than 16 million this year. The regulator said the Morrison government’s Climate Solutions Fund was being trialled to “increase flexibility for project developers­”, which would stimul­ate an increase in project registrations this year.

Energy and Emissions ­Reduction Minister Angus Taylor said ERF projects, which are domin­ated by vegetation regeneration and planting projects, were delivering “on-ground practical action to reduce emissions”.

 

Ahead of unveiling the government’s technology investment roadmap, a key plank of Scott Morrison’s pledge to drive down emissions, Mr Taylor said the regulator would aim to accelerate ERF projects to create “even more abatement”.

The CER said the 2020 large-scale renewable energy target of 33,000GWh was expected to be met this year and forecast the potenti­al for a “second wave” of renewabl­es investment if grid work was accelerated and distribu­tion levels improved to “enable high levels of rooftop solar capac­ity additions to continue”.

“The Clean Energy Regulator expects 35,000 to 37,000GWh (for the 2020 target); this number has been revised down from previous estimates because of increasing lag time to connect new power station­s plus increasing curtailment of generation owing to grid constraints,” the report said.

“Total electricity generated or displaced by RET-incentivised renewa­bles should increase from 44TWh to 56TWh in 2020.”

The report also highlights that Australia’s “rapid transition to renewables is continuing despite increasing grid issues”.