Despite all the controversies that the country faces, Australia is now emerging as one of the most promising places to invest in renewable energy.Ernst & Young accounting firm has moved the country into 12th place in the global jurisdiction of renewable energy, up from last year’s 16th place, giving the country a stronger footing with potential investors.
Although still lagging behind China and Germany (which hold the 1st and 2nd place) the big improvement is expected to attract investors into the country as well as encourage more local interest. Ernst & Young SA managing partner Mark Butcher said the unveiling of Australia's carbon pricing scheme was providing the necessary investment certainty for a swiftly-growing renewable sector.
With the continued downward trend of solar panel prices supporting the solar industries continued growth, and a steady move increase in electricity prices Australia is getting closer to national grid parity, when renewables would be competitive enough economically to offset carbon intensive energy on a large scale.
With major corporations like General Electric (GE), Areva, BP and Suzlonalready investing heavily, the long term positive future of the industry looks secured.
GE, one of the world’s leading electrical companies, will invest a $15 million solar plant in Western Australia. Areva and BP will both fund the solar flagship program of the country; Areva will be putting up most of the $1.2 billion 250 MW Solar Dawn project in Queensland which will feature a gas hybrid Concentrated solar power (CSP) which is the largest of its kind while BP will be leading the 150 MW Moree solar farm in NSW hosting 650,000 solar PV panels.
The wind power company Suzlon Energy is planning a $ 1.3 billion wind farm in regional South Australia to power 225,000 homes a year.
Alongside with these huge investments are a wide range of projects financed by the government and local companies that will steadily add to the rising renewable energy capacity of the country.
We can safely conclude that from now more and more investors will be flocking to the country, helping to stabilise the green economy, offsetting our carbon dioxide emissions, and opening doors to new clean energy jobs.
Australia is determined to reach its 20% national renewable energy target by 2020 and 40% target by 2050. The country will invest largely on renewable energy sources; seeding a $10 billion dollar fund in the next 5 years. This is more than double that of other investing countries like Britain who will invest a total of $4.5 billion in the coming years.
To manage the tax payers’ contributions the country will be establishing the Clean Energy Finance Corporation; headed by a board of banking and investment management. The board will be partnering with the business sector to unlock more clean energy potentials and investments, and the corporation is set to operate by 2013.
The Clean Energy Finance Corporation will function by loaning money or taking equity in solar power projects in Australia and other clean energy sources that cannot be funded by private lenders. The revenue of the loan will be again used for clean energy investments.
The collective funding will be used primarily on renewable energy projects like large scale solar panel installations and excluding all environmentally compromised energy sources like nuclear, bio-fuels from native forest wood waste, and carbon capture and storage. Another portion of the fund will be used to extensively grow hybrid energy sources like the Solar Dawn Project in Chinchilla, Queensland which combines solar thermal and gas.
A fraction of the fund will also be used for the development of supporting measures like energy efficient products as well as technological advancements in manufacturing renewable energy components. The corporation will also be utilising almost half a billion dollar in assisting farmers to reduce their carbon emission and to promote carbon storage in soil.
Australia’s renewable energy investment is said to increase up to $100 billion dollars by 2050 and so on until the ultimate goal 100% clean energy is reached.
Hi Amanda,
ReplyDeleteI have found your post, it is very nice and your idea is very creative. You have defined good use of Renewable Energy Australia, the government and local companies that will steadily add to the rising renewable energy capacity of the country.