Solar manufacturing industry essential, says CSIRO

A new report says a domestic solar manufacturing industry is needed to meet Australia’s 43pc emissions target by 2030.

Australia’s science agency has urged the government to develop a domestic solar manufacturing industry, with a new report saying it’s needed for the nation to meet its 43 per cent emissions reductions target by 2030.

The CSIRO/PwC report calls for the government to harness the nation’s natural endowment of solar resources and vast land mass amid warnings it is currently “in danger” of missing out on economic and strategic opportunities.

The Australian Silicon Action Plan, released on Friday, suggests pathways to help governments and industry develop a domestic solar supply chain and enable Australia to become a global solar superpower.

The plan recommends strategies across different points of the supply chain including mining, processing, manufacturing and export of solar panels, laying out a national proposal to expand Australia’s silicon production.

It urges Australia to rapidly expand the mining of quartz and develop smelting facilities to create silicon from the quartz rather than sending it offshore for processing. The silicon would then need to undergo further processing to be turned into solar cells, with investment in advanced-level manufacturing needed for Australia to have this capability.

The report is likely to embolden Labor’s plan to boost Australia’s domestic manufacturing industry. Industry and Science Minister Ed Husic backs investment in critical minerals and emerging renewables through the government’s flagship National Reconstruction Fund.

Mr Husic welcomed the report and said it would help support new industries and advanced manufacturing in Australia.

“The report highlights the part silicon plays in new technologies such as solar cells, semiconductor chips, optical fibres, aluminium alloys and its potential for use in batteries,” Mr Husic said.

“As I’ve said previously, if we mine it here, we should make it here. There is potential alignment with our priorities for the National Reconstruction Fund, including value-adding in resources and for renewables and low-emissions technologies.”

Australia is currently reliant on a highly concentrated supply chain for its solar electricity generation which will be integral for the nation to reach its climate ­targets.

The report states the development of a domestic industry would help to insulate Australia from shocks in the supply chain such as geopolitical tensions, natural disasters, climate change and the Covid-19 pandemic.

About 70 per cent of silicon in 2021 was produced in China.

“The energy transition is accelerating at scale and at pace, and geopolitical tensions and the Covid-19 pandemic have highlighted the fragility of Australia’s current supply chains and the risks associated with highly concentrated energy supply chains,” the report states.

“Australia has world-leading solar resources and a vast land mass that will allow us to facilitate deployment at scale. These advantages must be leveraged to meet Australia’s national targets of cutting emissions by at least 43 per cent by 2030 and reaching net zero by 2050, enable the export of energy to other countries to help achieve their net zero goals, and establish a local green hydrogen industry of global significance.”

The report adds that global ­deployment of social power technology would be “critical” to the success of the world’s transition to net zero, with solar and other renewables expected to be the leading source of energy in 2050.