Australia has slipped additional in the rating of international locations which can be enticing to renewable vitality buyers, however stays in the highest 10 due to the efforts of state-led targets and powerful curiosity from huge enterprise.
The newest version of EY’s Renewable Energy Country Attractiveness Index says Australia has fallen from sixth to seventh in the world, primarily based on an evaluation of the attractiveness of their renewable vitality funding and deployment alternatives.
“There has been a significant commitment to decarbonisation agenda by largest companies in Australia in the last few weeks,” mentioned Igor Sadimenko, EY Oceania Power & Utilities chief.
“It does feel like there has been a sudden gear shift, whether it is the realisation of ESG shareholders’ pressure, limited access to capital, or conscious decision to transform the respective businesses.
“But the race to ‘national collaborative’ commitment is on and the business world is uniting. This is a significant platform for renewables acceleration into our grid that will enable this form of energy generation to surpass the current predictions.”
The report notes that, simply as coal performed a major function in the Industrial Revolution, renewables are actually taking part in a significant function in the vitality transition for the following industrial revolution.
But EY says extra is required from Australia, each in long run and quick time period targets in the lead as much as the 2021 United Nations Climate Change Conference, or COP26.
“Interim measures are important to demonstrate progress, while a commitment (to net zero by 2050) will demonstrate that Australia is a serious player in the global decarbonisation agenda,” he says.
“Although, there have been state level commitment and roadmaps, a national pathway into low carbon future using new and proven technologies, committed investment into transmission assets and an energy system design that is able to manage the grid reliability and stability is necessary.”
The EY report additionally underlines the significance of new transmission hyperlinks, and devotes one chapter to the $3.5 billion Marinus Link, proposed by Tasmania’s state-owned electrical energy transmission and distribution firm, TasNetworks.
“By strengthening the connection between these two parts of the same market, the proposed interconnector would essentially turn Tasmania into a giant battery providing capacity firming services to the NEM,” EY predicts.
“The island would be able to store excess renewable energy generated on-island or transported from the mainland, using this energy itself or returning it to the mainland as needed. Development of long-duration pumped storage hydro on existing dams would further strengthen this role.”
It additionally gives alternatives for inexperienced hydrogen, however price allocation – who pays for it – stays an unresolved problem.
The EY index ranks US as essentially the most enticing nation, adopted by China, India, France and the UK. Germany swapped positions with Australia, which was ranked quantity 3 in the world this time final 12 months.