Australia’s Renewables Grid: New Projects Break Drought
In recent days, wind energy in several Australian states faced a temporary setback, highlighting a larger issue of stagnation in new connections and registrations for major wind and solar projects on the country’s primary grid.
The Australian Energy Market Operator’s latest quarterly report revealed a concerning fact – no projects were registered and connected to the National Electricity Market (NEM) in the first quarter of 2024. This drought of new projects persisted until late May when the Crookwell 3 wind farm and the Wellington North solar farm were added to AEMO’s management system.
Slow Progress in Renewable Energy Projects
Data from GPE NEMLog’s Geoff Eldridge indicates that these were the first projects to enter the commissioning pipeline on the main grid since December. Another significant addition was the Western Downs battery in Queensland, alongside a large solar farm, marking the longest period without new wind and solar projects since 2014.
Despite ambitious plans and announcements for the future, various data sources, including the Clean Energy Regulator, paint a grim picture of the sluggish pace of the green energy transition in Australia. Only a small amount of new capacity was approved for renewable energy certificates in April, with most projects being small-scale solar systems.
Challenges and Delays
Large-scale renewable projects have faced delays in planning approvals, connections, and commissioning, compounded by policy and market uncertainties. In NSW, wind projects have encountered significant delays, taking nearly a decade to navigate the planning system.
The impact of these delays is evident with the postponement of the closure of the Eraring coal-fired power station, the largest in Australia, due to insufficient new capacity in the grid. Despite a substantial pipeline of proposed projects, progress has been hindered by various obstacles.
The Capacity Investment Scheme aims to address these challenges by unlocking the project pipeline. With upcoming tenders for new wind, solar, and storage capacity, the government targets significant capacity additions by 2030. However, there are calls to increase the target for wind and solar capacity to ensure the renewable energy goals are met.
Policy Dilemmas and Future Outlook
While some projects for large customers are progressing, many developments are now dependent on the CIS process, causing further delays. The federal government’s target for new renewable capacity faces opposition from the Coalition, which advocates for halting new wind and solar projects and extending the life of coal-fired power stations.
Industry experts warn that such a move would have detrimental effects on emissions, costs, and grid reliability. As the energy sector grapples with these challenges, the future of Australia’s renewable energy transition remains uncertain.
