Renewable investment tipped to outlive subsidies but growing pains remain
Source: The Age
Large investments in the solar and wind power industry have been expected to continue beyond the era of government incentives, as predicted by the Clean Energy Regulator.
The government’s renewable energy target stimulated investment in solar and wind projects to ensure 33,000 gigawatt hours of electricity was generated by renewables in Australia by 2020. Currently, the total generating capacity in the national electricity market is about 55,000 megawatts, which is a 6,300 megawatt increase from last year.
David Parker, the chairman of Clean Energy Regulator, has discussed the predictions, stating “This ongoing growth demonstrates the renewable energy target has not acted as a cap on renewable investment. On the contrary, the market is finding a way to maintain investment levels”.
However, with Australia’s renewable energy generation expected to jump from 25% to 34% by 2023, and almost a dozen solar farms having output cut due to poor grid capacity last year, the regulator has expressed the urgent need for investment in transmission infrastructure to support the pipeline for increased renewables.
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