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 latest quarterly report from the Australian Energy Market Operator revealed a concerning fact: no new projects were registered and connected to the National Electricity Market (NEM) in the first quarter of 2024. This drought persisted until late May when the Crookwell 3 wind farm and Wellington North solar farm were added to AEMO’s management system.
Slow Progress in Renewable Energy Projects
Data from GPE NEMLog’s Geoff Eldridge indicated that these were the first projects to enter the commissioning pipeline on the main grid since mid-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, the pace of the green energy transition in Australia remains sluggish. The Clean Energy Regulator reported only 56 MW of new capacity approved for renewable energy certificates in April, with most projects being small-scale solar systems.
Challenges and Delays
Large-scale projects have faced delays in planning approvals, connections, and commissioning, compounded by policy and market uncertainties. In NSW, wind projects have encountered significant planning approval delays, with some taking nearly a decade to navigate the system.
The impact of these delays is evident, with the closure of the Eraring coal-fired power station postponed due to insufficient new capacity in the grid. Despite a substantial queue of projects in progress, the actual realisation of new capacity has been hindered by various obstacles.
AEMO’s data revealed a significant backlog of proposed projects, highlighting the pent-up demand for renewable energy infrastructure. Initiatives like the Capacity Investment Scheme aim to unlock this pipeline and facilitate the development of new projects.
Future Prospects and Challenges
The federal government targets substantial new wind, solar, and storage capacity to be tendered by 2030, with calls to increase the wind and solar target to ensure the renewable energy goals are met. However, the current process has faced criticism for potentially slowing down developments.
While the federal Coalition advocates for halting new wind and solar projects, industry experts warn of the repercussions on emissions, costs, and grid reliability. The debate around the future energy landscape in Australia remains complex and contentious, with diverging views on the best path forward.
