Federal and State Energy Ministers have confirmed that clean renewable energy backed by storage is the centrepiece of Australia’s electricity system, consigning fossil fuels to history, where they belong.
All jurisdictions have agreed to deliver a Capacity Investment Scheme that will incentivise more clean renewable energy and storage into the electricity market, where and when we need it. This will ensure that electricity is more reliable and power bills are more affordable for Australians as we transition to a grid powered by clean wind and solar.
Today’s announcement will:
- Make energy prices lower and more stable for homes and businesses
- Attract even more new investment in renewable electricity backed by batteries, pumped hydro and other long duration storage technologies
- Provide a kick start for domestic battery manufacturing in Australia
- Drive a huge reduction in Australia’s largest source of emissions.
Climate Council Head of Advocacy Dr Jennifer Rayner said: “Energy Ministers from across the political spectrum have agreed to turbo charge renewables. A huge win for all Australians as it will open up clean, cheap and secure power for our future.”
“Moving to cheap, clean renewable energy will free Australians from the huge energy bill shocks they’ve been facing. It also puts us on track to make deep cuts in emissions needed this decade to avoid more harmful climate change.”
“Wind and solar power backed by batteries and pumped hydro is the recipe for cheap, clean and reliable energy. This decision is the strongest signal yet that Australia’s energy future is renewable, with all governments now working to deliver this.”
Climate Council congratulates Energy Ministers for putting Australians first by working to deliver a clean energy system that’s fit for our net zero future.
What is the Capacity Investment Scheme?
Just like a dam can store water, renewable energy storage like big batteries and pumped hydro can collect excess electricity when wind and solar are plentiful and store it for later use.
The Capacity Investment Scheme will incentivise more investment in this kind of clean dispatchable energy supply, ensuring reliable and affordable power for Australian homes and businesses year round – even when the sun isn’t shining and the wind isn’t blowing.
To maximise the benefits of this new investment and support the transition to a fully renewable grid, Climate Council recommends Australian Governments now pair this work with a focus on energy efficiency and demand reduction.
