Renewable Energy Projects Surge Amidst Political Opposition
After a year of intense debate surrounding social acceptance, recent developments indicate a significant shift towards renewable energy in Australia. The Capacity Investment Scheme (CIS) is playing a crucial role in driving this transition, acting as a catalyst for change.
The CIS serves multiple purposes, sending a clear signal to all stakeholders and operating at a rapid pace. In 2024, offers will be solicited for 10 GW of wind and solar supply, with 6 GW of contracts to be awarded that year and a potential additional 10 GW in 2025. The involvement of the Federal Government is helping to streamline the National Electricity Market (NEM) to some extent, although individual states still retain their own agendas.
Renewable Energy Growth and Demand Forecast
The renewable energy share of NEM supply is projected to surpass 50% by the end of 2025, marking a significant milestone in the country’s energy transition. Anticipating the future growth of renewable energy alongside demand expansion poses a challenge, as the pace of demand growth could impact the balance between renewable and traditional energy sources.
AEMO’s forecasting team predicts a shift in demand growth trends, with electrification, population expansion, and the rise of electric vehicles expected to drive a 2% to 2.5% compound growth in demand up to 2030. These estimates contrast
