Can Australia lead the global race to renewable energy transition?

Highlights

• The climate change issues present significant opportunities for renewable energy players across Australia.
• Australia is believed to be emerging as a globally recognised leader in renewable energy with a strong push for adopting renewable sources.
• Australia has committed a further AU$500 million to enhance climate resilience and drive climate solutions.

For years, we have been talking about climate change and the pivotal role that renewables can play in tackling this disastrous challenge. Governments and organisations across the globe have been engaged in research for innovative solutions to curb emissions and achieve a net-zero emission target.

The Australian Renewable Energy Agency (ARENA) believes that the energy sector is witnessing a big and complex transformation amid the momentous shift towards renewable energy.

On the one hand, dealing with a growing share of renewables and various ways to operate these may be a challenge, while on the other hand, this also exhibits numerous opportunities for businesses to maintain energy cost efficiencies and capturing new sources of development.

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Australia poised to become a leader in renewable energy

Solar, wind power and hydropower are some of the most well-known, most widespread, and the oldest renewable technologies across the globe.

Australia can play a major role in transitioning towards renewable energy sources and is encouraging innovation and new technologies. The country is already a prominent name amongst the nations with abundant oil and gas and other natural resources. Now, Australia seems to be quickly emerging as a globally recognised leader in renewable energy too as state governments, policy makers and energy companies continue to push for this much needed transition.

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Moreover, Australia has numerous renewable energy projects that bolster its current stance and positioning for the future as well. Some of these projects are:

• Walcha Energy Project in New South Wales worth ~AU$5 billion,
• Kennedy Energy Park and Desailly Renewable Energy Park, both in Queensland worth ~AU$2 billion each,
• Clarke Creek Energy Hub in Queensland worth ~AU$1.5 billion, and
• Jim’s Plain Wind Farm in Tasmania worth approximately AU$1.2 billion.

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Australia commits additional AU$500 million

Australia has committed a further AU$500 million to tackle the climate change issues, on top of AU$1.5 billion pledged in December 2020. This would further support the countries in the Pacific and Southeast Asian regions to improve climate resilience for upcoming infrastructure investments while steering private sector-led climate solutions backing clean technology.

Australian Prime Minister Scott Morrison has asserted that Australia is a leader in adaptation efforts across the globe and the country is working to reduce emissions and to boost prosperity.

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Such investments should not only be limited to developed nations but empower and enable developing nations as well. There is a significant need for industrialising and lifting incomes and standards of living of the people in developing countries in a decarbonised energy economy.

Bottom Line

Australia is pivoting towards carbon neutrality by 2050 and the energy sector players believe renewable energy production to be a potent area for making gains. Moreover, energy producers are looking to transition from traditional fossil fuels to energy solutions that maximise the renewable fraction.

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The present renewable energy sources might not be capable of meeting all the energy needs and would require fossil fuels to fill in the gaps till the moment when supply of green technology catches up with the demand.