Weekly Climate and Decarbonisation Update (11 August)
Climate Politics
Net billions: green light for PM to turbocharge energy revolution (The Australian): The Productivity Commission declares Anthony Albanese’s clean-energy transition will cost more than expected and require greater government intervention to hit climate targets without crippling the power grid.
Clean energy subsidies should be replaced with ‘market-based incentives’ from 2030, Australia’s Productivity Commission says (The Guardian): The Productivity Commission says clean energy subsidy programs should not be extended beyond 2030, and that “market-based incentives” should guide investment in the clean energy transition over the coming decades. The commission’s interim report on investing in cheaper, cleaner energy and the net zero transformation is one of five which will be released over two weeks and which set out a series of reforms to reinvigorate Australia’s productivity.
Carbon policy maze driving up cost of energy transition: PC (The Australian Financial Review): Emissions reduction policies in the electricity, transport and industrial sectors should be expanded in a way that mirrors the effect of a broader, nationwide carbon price, the Productivity Commission has told Treasurer Jim Chalmers. In a major new report before the government’s Economic Reform Roundtable, the commission warned that inconsistent and overlapping emissions reduction schemes and a broken planning approvals system were increasing the cost of Australia’s energy transition.
Joyce and Canavan call for new coal plants to replace renewable energy projects (The Guardian): Barnaby Joyce and other leading opponents of net zero by 2050 want Australia to build new coal-fired power plants, focus on gas and nuclear energy and abandon all efforts to cut carbon emissions. As the former Nationals leader pushes a private member’s bill to block net zero – sparking new divisions within the Liberals and Nationals this week – he said any long-term emissions reduction from renewables would not make a meaningful difference to the climate and would cost households too much.
Radical plan proposed to reinvent the energy market (The Australian Financial Review): The government should introduce a scheme that guarantees the long-term viability of new renewable energy projects, such as wind and solar farms, to ensure Australia meets its long-term emission reduction targets, according to a major review of the electricity system. Under the proposed scheme, called the Electricity Security Entry Mechanism, the government would purchase long-term contracts – up to 20 years – from new renewable projects in Australia’s east coast grid, which it could then on-sell to energy retailers. Short-term risks would need to be borne by the projects themselves. Taxpayers would not have to pay anything.
Push for new contracts, offtake agency to drive renewables (The Australian): An expert panel has proposed Australia’s biggest power market overhaul in 30 years, which could determine whether the nation gets to net zero emissions by 2050.
Nelson Review’s plan to reshape energy markets gets warm welcome – now for the hard part (Renew Economy): The draft recommendations from the Nelson Review of Australia’s electricity markets have received a warm welcome – so much so that most of those with a particular vested interest in the outcome, with the exception of Barnaby Joyce, signed a joint statement welcoming the findings. Australia’s electricity market – and the rules and regulations that have governed it – has often been described as “not fit for purpose”, but Nelson and his team have resisted the temptation to scrap the whole thing and start over.
Draft review maps consumer energy resources integration reform (PV Magazine): Solar generation and rooftop solar are among the biggest catalysts of change to the National Electricity Market, which a draft government review aims to stabilise and improve through nine reform recommendations.
EPBC delay adds to hurdles facing biggest winner of Capacity Investment Scheme auction (Renew Economy): The federal government’s environment office has delayed a decision on Acen Australia’s Valley of the Winds project, as the state-approved project is taken to court. Environment minister Murray Watt has another eight days after 21 August to make a decision on the project, which has been in the EBPC pipeline since 2020 when federal planners confirmed it needed commonwealth oversight. “The extension was provided to ensure the department has adequate time to consider relevant information on whether or not to approve the proposed action,” a spokesperson from Watt’s office says. The new deadline is to 2 September. Acen Australia won final planning approval in July for the 943 megawatt (MW) project in the Central Western Orana (CWO) renewable energy zone (REZ), and a 320 MW, two-hour big battery.
Renewable developer rating scheme delayed, will be followed by “strict” regulations if it doesn’t work (Renew Economy): Renewable energy developers will need to be strictly regulated if the proposed developer rating scheme doesn’t improve behaviour, says Australian Energy Infrastructure Commissioner (AEIC) Tony Mahar. Despite being launched with some fanfare in March, there is still no sign of the first stage of the proposal, which was due to launch on 1 July. The Department of Climate Change, Energy, Environment and Water did not respond to emails and a phone call asking for a status update.
Corporate Social Responsibility
Diggers and Dealers panel questions Australia's energy future and emissions target (ABC News): More than 2,300 delegates have descended on Kalgoorlie-Boulder for the annual Diggers and Dealers Mining Forum. The forum's keynote panel focused on the feasibility of Australia's energy transition and emissions targets. Federal Resources Minister Madeleine King reaffirmed the government's commitment to net zero at the forum.
Green legal push for Santos decommissioning guarantee (Boiling Cold): The Wilderness Society is taking the offshore oil and gas regulator to court, claiming it should ensure Santos has enough money to decommission the Reindeer gas field off the Pilbara coast, which it will close in coming months. The environmental group is seeking a judicial review in the Federal Court of a decision in May by regulator NOPSEMA to allow Santos to delay decommissioning the field while it considers whether to use the offshore infrastructure for carbon storage.
Better together: Push for Federal Government to force mining and green energy to co-exist (The West Australian): Australia might be known as the great southern land, but an escalating fight for space has industry leaders calling for the Federal Government to intervene to ensure mining and renewable energy projects can co-exist. A new report by the Association of Mining and Exploration Companies is warning that priority access for green energy developers is putting the lucrative mining industry at risk, thrusting the issue on the agenda ahead of this month’s national economic roundtable. “We have many more competing uses for the land, no consistent rules and established industries that provide the foundational base of our economy forced to play second fiddle,” AMEC chief executive Warren Pearce said.
Regions call for clarity on risks and opportunities of renewables shift (PV Magazine): As Australia’s transition to renewable energy gathers pace, a new report has called for governments and industry to adjust their practices to ensure rural and regional communities secure real and lasting benefits from large-scale solar, wind and battery projects. Achieving the Australian government’s 82% renewable energy target by 2030 requires rapidly building new large-scale renewable energy generation, storage and transmission infrastructure. The Striking a New Deal for Renewables in Regions report, co-authored by not-for-profit organisation Foundation for Rural and Regional Renewal (FRRR) and regional advisory Projects JSA, explores the challenges and opportunities facing regions hosting these renewable energy developments.
Green Projects and Initiatives
Andrew Forrest’s Fortescue leans on Chinese banks for $US2b loan to advance decarbonisation efforts (The West Australian):The miner has made Australian corporate history by securing a Chinese-backed $US2 billion loan to help bankroll decarbonisation efforts.
World’s biggest isolated grid says it has more than 12 GW of renewables ready to connect (Renew Economy): One of the world’s most isolated electricity grids, and likely the biggest, Western Australia’s South West Interconnected System (SWIS), has a “connection-ready” pipeline of more than 12 gigawatts of renewable energy projects, the state’s government-owned network company has revealed. In an update issued last week, Western Power’s executive manager of energy transition and sustainability, Matt Cheney, said the SWIS had a total of 12.81 gigawatts (GW) of new solar, wind and battery projects lined up to plug in to the grid, as of the end of June, 2025. “Over the past year, we have been building a clearer picture of where renewable investment is likely to occur, future load forecasts, and project readiness,” Cheney said.
Construction begins on new four-hour big battery in W.A. (Renew Economy): Construction has begun on the new 100-megawatt (MW) four hour Merredin Big Battery in the southwest of Western Australia, with the project expected to be completed in October, 2026. The Merredin Big Battery is being developed between Atmos Renewables and Nomad Energy, who took a final investment decision last month and quickly moved to appoint local construction firm GenusPlus Group to design and construct the project.
Giant off-grid gold mine aims for 90 pct renewables, claims to be first in world to “net zero” emissions (Renew Economy): One of Australia’s newest gold projects, the off-grid Bellevue gold mine in Western Australia, says it is aiming to run at up to 90 per cent renewables on average, and has already achieved substantial periods with no fossil fuelled electricity. The Bellevue mine – 40kms north west of Leinster – is host to one of Australia’s biggest off-grid hybrid systems, featuring 27 megawatts (MW) of solar, 24 MW of wind, and a 15 MW/33 MWh battery system that allows the diesel generators to be switched off. In a presentation this week at the Diggers and Dealers conference in Kalgoorlie, more than 400 kms to the south, and at an earlier site tour, Bellevue Gold also said the mine will be the first gold mine in the world to achieve “net zero” emissions.
Solar Sunshot shines $4.7 million on ingot and wafer manufacturing (PV Magazine): Ingot and wafer manufacturer Stellar PV is closer to bringing advanced solar manufacturing back to Australia with the help of a $4.7 million Australian Renewable Energy Agency (ARENA) fund to conduct a feasibility study for a 2 GW low-emissions polysilicon ingot pulling and wafering facility near Townsville, Queensland. The funds are part of the federal government’s $1 billion (USD 650 million) Solar Sunshot program, that seeks to commercialise solar innovations and enhance supply chains.
Irish developer eyes 2,000 MWh renewables park in Queensland (PV Magazine): Ireland-based renewables developer DP Energy has unveiled plans to build a 500 MW / 2,000 MWh battery energy storage system alongside a 1,400 MW wind farm in northwest Queensland.
FRV Australia reaches financial close on its biggest battery (PV Magazine): Solar and storage developer Fotowatio Renewable Ventures Australia (FRV) has reached financial close on the 250 MW / 500 MWh Gnarwarre battery energy storage project being developed near the town of the same name in Victoria’s south. The battery will be constructed on a seven-hectare site on the outskirts of Gnarwarre, about 20 kilometres west of Geelong. The project will consist of approximately 192 lithium-ion battery energy storage units and will connect to the grid via the existing 220 kV overhead transmission line adjacent to the site.
Pottinger Wind Farm approved (Energy Magazine): A wind farm within the South West Renewable Energy Zone (SW REZ), has been approved by the NSW Independent Planning Commission. The proposed Pottinger Energy Park project comprises 1.3GW wind farm, with up to 247 turbines; a 500MW/2000MWh BESS (battery energy storage system); and associated infrastructure.
Energy Vault firms up 1 GWh Stoney Creek BESS acquisition (PV Magazine): The acquisition of the 125 MW / 1,000 MWh Stone Creek battery energy storage system (BESS) in New South Wales (NSW) by United States-headquartered grid-scale energy storage solutions company Energy Vault is complete. Energy Vault received foreign investment review board (FIRB) approval to complete the acquisition and take control of the Stoney Creek BESS development and operations, fourth months after initially announcing the acquisition from development partner, Texas-headquartered Enervest Group.
“Transformational:” First nations group seal first-of-its kind stake in giant battery project (Renew Economy): A local First Nations group has secured an equity stake in a major $450 million battery storage project in western NSW, in a first-of-its kind deal that the developer and local indigenous leaders hope will become a template for the industry. The landmark deal has been struck by Ampyr Australia, a new battery storage developer backed by Singapore-based AGP, and the Wambal Bila indigenous community corporation, for the 300 megawatt (MW), 600 MWh Wellington battery, which is to be built next to two existing solar farms owned by other parties. Wambal Bila (a Wiradjuri word for mountain-river) has an option – through an equity right – to take a 5 per cent equity stake in the battery project. It is believed to be the first such deal with a First Nations group that does not involve Native Title or other legal rights.
New community hub opens for NSW REZ (Energy Magazine): EnergyCo and ACEREZ have launched a new Community Information Centre to help locals learn more about what the Central-West Orana Renewable Energy Zone (REZ) transmission project means for the region. The centre is a joint effort between ACEREZ – the network operator designing, building and maintaining the Central-West Orana REZ transmission network – and EnergyCo, to help ensure local communities stay informed, supported and involved as the transmission project takes shape.
Virtual power plant drives ‘zero down’ household solar and battery installs (PV magazine): Gentailer Alinta Energy and technology solutions company National Renewable Network have co-launched an initiative that installs household solar and battery storage systems at no upfront cost.
Other Matters of Interest
‘It’s not dreaming, it’s dragging’: Inside Labor’s COP bid (The Australian Financial Review): The Albanese government’s bid to host the huge COP31 global climate summit is more than three years old. Just over 12 months out from the event, it has yet to secure the meeting. The timing of United Nations climate chief Simon Stiell’s visit to Australia last week was not accidental. Climate is on the political agenda in 2025, both at home and abroad, and Stiell was here to send the government message – or two. The first, regarding Labor’s looming decision on its 2035 emissions reduction target, due by November, was obvious: go big, bold and ambitious, he said.
Net zero? That’s so 2021! Why the Paris Agreement is under fire from the political left and right (ABC News): Australia’s roller-coaster ride with climate policy is now turning, predictably, into a tussle over net zero. Under the Morrison government, Australia eventually got around to adopting a net zero target in 2021. Now there are calls to abandon it. The net zero project, according to the critics, is a scam. These criticisms come from both the political left and the political right.
Decisions for decades (The Australian Financial Review): Australia’s energy transition is gaining momentum, but is our system prepared for the significant shifts ahead? Despite strong investment interest, global instability and fragmented trade policies are eroding market confidence. East Coast gas remains a contentious issue, ensnared by policy complexities, infrastructure deficits, and the competing pressures of domestic supply and export commitments. What is the market’s true trajectory? And can initiatives like “Future Made in Australia” genuinely propel us from critical minerals extraction to green export powerhouse?
Wind and solar droughts have a bigger impact on prices than on reliability (Renew Economy): Long duration droughts of variable renewable energy (VRE, or wind and solar) are really not that long, nor that severe. Nevertheless, electricity spot prices are very elastic, so we need to distinguish between the implications of droughts for reliability and the implication for prices. The analysis below leads me to think that 24-hour continuous periods where wind and solar output was less than 66% of average will happen only about 6% of the time. That’s not a drought by the standards of rainfall. It’s hardly even a dry season. Rain droughts can go for on years. This article only focuses on utility wind and solar, uses the 2035 capacities by renewable energy zone (REZ) assumed in the 2024 Integrated System Plan (ISP) for 2035, and then applies those capacities to the ISP weather traces.
Australia leads the world on rooftop solar, now it needs to catch up with how to manage it (Renew Economy): It is an irony of no small significance that Australia, while leading the world in per capita uptake of rooftop solar, finds itself in 2025 well behind the pace on how best to manage this huge and valuable resource as part of a modern, increasingly renewables-powered grid. As a major new report from Energy Catalyst and CSIRO this week reminds us, Australian homes and businesses are expected to have installed around 55 gigawatts (GW) of rooftop solar by 2035, generating roughly 70 terawatt-hours (TWh) of power.