Federal Leadership and State Intervention: Why State Government Intervention is needed in Response to Australia’s Capacity Investment Scheme (CIS)

 

The Australian Government’s recent announcement of its largest green tenders has set the stage for significant advancements in the country’s renewable energy capacity. With the aim of pursuing 10GW of new wind and solar capacity this year, alongside 3GW of dispatchable capacity, it’s evident that the government is doubling down on its commitment to transitioning towards cleaner and more sustainable energy sources.

 

The tender program for 2024, comprising a 6GW tender for wind and solar in the next quarter and an additional 4GW of green energy for the second half of the year, is a testament to the scale of the initiative. This information comes in light of the Capacity Investment Scheme (CIS) report released by the DCCEEW, which highlights the importance of such endeavours in meeting Australia’s decarbonisation targets.

 

Federal Vision and State Government Collaboration

 

While federal leadership is crucial in driving these initiatives forward, the success of such endeavours heavily depends on the alignment of policies and funding at the state and territory levels. It’s imperative that states and territories adapt their strategies to meet individual needs and contribute to the broader national decarbonisation objectives.

 

The recent CIS report has shed light on a 9GW shortfall in planning and project targets, underscoring the urgency for collaborative action. Addressing this gap will require not only additional federal planning but also proactive efforts from states and territories to implement energy policies and incentives that support renewable energy development.

 

State-by-State Progress

 

When examining the progress of various states and territories, it’s evident that some are further along the path to renewable energy adoption than others:

 

  • New South Wales (NSW): At the recent Smart Energy Conference, NSW Planning Minister provided assurances of the state’s commitment to green energy initiatives. With the approval of solar projects totalling 7.6GW of generation and storage capacity, NSW is making significant strides towards achieving its renewable energy objectives.
  • Western Australia (WA): Despite facing unique challenges due to its isolated grid system, WA has made commendable progress in transitioning towards renewable energy sources. Sufficient new supply is emerging to replace lost generation from coal-fired power plants, positioning the state as a leader in green energy adoption.
  • Queensland: Reports indicate promising developments in Queensland’s renewable energy sector, with enough projects in the pipeline to meet its 50% renewables target by 2030. However, expediting project approvals and transitioning away from coal remain critical priorities for the state.
  • South Australia (SA): While SA has achieved significant milestones in renewable energy adoption, such as recording 70% of grid energy sourced from green power, challenges remain in meeting its 100% renewable energy target by 2027. Ensuring that green projects are fully operational by the designated timeline will be essential in realising this goal.

 

A Collaborative Approach

 

In addressing the gaps highlighted by the CIS report, collaboration between federal and state governments is paramount. By aligning policies, securing funding, and accelerating green projects, Australia can make significant strides towards a cleaner and more sustainable energy future.

 

Engaging developers and industry stakeholders ensures that government initiatives align with market needs and can effectively drive the transition towards renewable energy sources. This collaboration also fosters innovation, encourages investment, and promotes the adoption of cutting-edge technologies in the renewable energy sector. By leveraging the expertise and insights of industry professionals, policymakers can craft more effective strategies that address the evolving challenges and opportunities in Australia’s green energy landscape.