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In today's edition:

Bowen staying the course 'sensibly'
Big batteries keep on charging
Santos chief likens Victoria to North Korea
Watt grants North West Shelf extension
Dan Tehan handed energy shadow role

Targets 'easier set than met': Bowen

Despite numerous attempts from Energy Efficiency Council CEO Luke Menzel, federal Energy Minister Chris Bowen wouldn’t be drawn on opening the door to targets for the demand side at the lobby group’s flagship event.

“Setting a target is easier set than met, in my experience. So can it play a role? Potentially. Is it the answer in and of itself? No, in my view. Is it a conversation that's worth continuing? Sure,” Bowen said.

He added that the electricity sector plan to 2035, though not an energy efficiency policy, would provide “markers” to help the private sector see the value the government placed on energy efficiency.

Asked if ‘leaning in’ meant taking on big additional reforms in the next term of government, Bowen said he would be guided by the experts, and podcasts (to much laughter from the audience).

“We are blessed in Australia to have a rich architecture of experts spread across AEMO, AEMC, AER, my department, and think tanks and the private sector. And podcasts.”

“The ISP is a world-class document that is a sensible, well-crafted roadmap.

“And I think, frankly, the recent election result showed the silent majority saying, get on with it, keep going…of course that societal support is to keep going sensibly and in a balanced fashion, but they do say keep it up and I take great heart in that.”

Bowen also played up the potential benefits should Australia be successful in its bid for COP 31.

“There's a lot of focus on conference, which is fair enough, but actually you take office as the COP president on the first day of COP…there's an opportunity to be active all year, so it's not a 2-week conference in Adelaide, it’s a year-long presidency where Australia could continue to help shape the international conversation.

“It’s also a massive trade fair and trading opportunity and I think we bring a perspective as a country, which is very clearly, traditionally, a fossil fuel country, to talk about the opportunities of transition, both for fossil fuel exporters and importers.”

Big batteries keep on charging

The Clean Energy Council’s Quarterly Investment Report: Large-scale renewable generation and storage for Q1 2025, showed continued momentum for big battery and storage projects across the country, but fell short of the record $2.8 billion set in Q4 2023.

Six projects worth $2.4 billion in total reached the financial commitment stage in the January-March period, representing an extra 1.5GW in storage capacity and 5GWh in energy output.

The largest BESS project reaching financial commitment for the quarter was in Wooreen, Victoria, with a storage capacity/ energy output of 350MW/1.4 GWh, and duration of four hours, while South Australia won the largest share of financially committed storage projects in capacity (640 MW/1.8GWh).

“There is no doubt the 2025 federal election caused a degree of investor uncertainty earlier this year, given the stark differences in energy policy between the two major parties. Subdued levels of investment are fairly typical in the first quarter of the year; however, the clear-cut result of this election has given the government a mandate to continue leading Australia’s transition to clean energy and that has provided markets with policy certainty and a clear signal about where to invest.” — CEC Chief Policy and Impact Officer Arron Wood

The 2025 Clean Energy Australia Report, also due to be released on Thursday, showed investment commitments for renewable energy generation jumped by 500% to $9 billion in 2024, after 2023’s weakness put the frighteners on 2030 targets.

Australia surpassed four million rooftop solar installations in 2024 with rooftop solar generating 12.4% of total electricity. Some 40% of Australia’s electricity was provided by renewables in 2024, with fossil fuels still making up the majority of the energy mix.

Peeking into the gas tent

Speaking at Australian Energy Producers 2025 in Brisbane, Santos CEO Kevin Gallagher called for energy and climate to be decoupled, and for all emissions reduction to be welcomed - including carbon capture and storage.

“Energy policy should focus on availability, reliability and affordability of energy for your markets, and that's your domestic markets, so that you've got affordable energy for the consumers in the country, help with electricity prices, your manufacturing industry, to support that base.

Climate policy is about emissions reduction. Focus on emissions reductions, set the trajectories, and let the free market work within that energy policy environment.” — Santos CEO Kevin Gallagher

A day after Resource Minister Madeleine King told the industry to play nice, Gallagher likened Victoria to North Korea despite Premier Jacinta Allen’s Economic Growth Statement in December promising to fast-track new gas fields and storage alongside renewable projects.

“If I think about Queensland, Northern Territory, South Australia, Western Australia. These are actually very supportive jurisdictions. They're very development friendly. Victoria, North Korea,” Gallagher said.

Victoria is on a trajectory to become a net importer of gas from 2029 as consumption is forecast to exceed its production, according to AEMO, in a state that energy expert Tony Wood has called out as unusually dependent on gas.

King also trialled the ‘energy security is national security’ messaging ahead of the expected approval of an extension for the North West Shelf.

“We can't have a transition on warm thoughts alone, the Albanese Labor government was the first government to seek to define the role of gas, what it will play to support renewable power, electrification and net zero goals here in Australia and across the region.” — Resources Minister Madeleine King

On the $3.6 billion Narrabri project in NSW, Gallagher said 35% of landholders needed for the pipeline licence had signed up, with the balance likely “in the next year or so”. He expected first production in 2028 or 2029 (three years after FID).

“My biggest advocacy issue right now is really focused on getting government support here right behind CCS, backing it in, and allowing our industry to go and utilize our capabilities and provide another competitive advantage,” he said.

Catch up

Projects

In his first call as Environment Minister Murray Watt granted Woodside Energy (ASX:WDS) an extension of the North West Shelf gas project to 2070, with strict conditions around the impact of emissions from an expanded onshore Karratha gas plant. Woodside has 10 days right of reply, as required under the EPBC Act, before a final decision is made by Watt.

“We expect that Woodside will ensure that the work on this project will be performed by suitably qualified Australian workers who are directly engaged by Woodside or by a reputable contractor that engages workers on industry standard pay and conditions.” — Maritime Union of Australia WA Branch Secretary Will Tracey

Woodside CEO Meg O’Neill told reporters at Australian Energy Producers 2025 that the conditions relate to heritage and air quality.

“We have worked closely with Traditional Custodians for more than 40 years now and whilst we haven’t always gotten it right, we have very strong working relationships now,” she said. “We support World Heritage listing and we believe industry and heritage can co-exist … And, look, I’d like to commend Minister Watts for sticking to his word and putting forward a decision by May 31.”

Meanwhile a new report by the body that advises the United Nations on World Heritage nominations recommended Australia address acidic pollution on the Burrup Peninsula. An agenda for UNESCO’s meeting in July shared by ACF suggested a decision on the Murujuga Cultural Landscape was set to be deferred and the nomination sent back to the Australian government to address the clear risks to World Heritage values.

“The UNESCO World Heritage nomination of the rock art is completely inconsistent with more years of acid pollution damaging the petroglyphs at Murujuga. Environment Minister Watt should do everything in his power to protect the rock art, not protect the gas industry.” — ACF First Nation’s lead Josie Alec, a Traditional Owner at Murujuga

Capital

Tesla won council approval for a new factory in South Australia despite vocal anti-Musk sentiment. (Guardian)

New Zealand tech entrepreneur Rod Drury told the Electrify conference in Queenstown the nation’s electricity market should undergo a structural separation into wholesale and retail layers. The wholesale layer would become a National Electricity Infrastructure Company that owned generation and transmission, and become a magnet for capital from global superfunds.

“The current gentailers would divest their generation and transmission assets from their retail businesses. They would receive an immediate cash injection and start their new journey with a pathway to stable low cost energy prices. They could still be listed companies which raise capital for good ideas and deliver dividends to their community and government.” — Founder and ex-CEO of Xero Rod Drury

North Queensland based gas producer QPM Energy (ASX: QPM) signed two new funding agreements with foundation customer Dyno Nobel, including a new prepayment facility of up to $40 million to support gas delivery out to 2033.

Policy

A Clean Commodity Trading Initiative (CCTI), developed in partnership with strategic allies such as Japan and Korea, could offer long-term offtake contracts for clean commodities – de-risking investment and catalysing industrial development, former Clean Energy Finance Corporation CEO Oliver Yates and Green Energy Statecraft Project director Elizabeth Thurbon wrote in the AFR.

Victoria’s State Electricity Commission will be back in the retail market after almost 30 years from July 1, serving government customers that account for 5% of the market.

“Our capacity to source renewable energy, including from the Victorian Renewable Energy Target auction projects, and offer renewable energy to retail and wholesale markets means we can match supply with demand, thereby reducing the Victorian Government’s exposure to price volatility,” — SEC CEO Chris Miller

Regulation

Queensland Minister for Natural Resources and Mines Dale Last announced nine new areas would be made available for tender across the Cooper/Eromanga and Bowen/Surat Basins and launched a three-month review on how gas exploration areas are identified and released.

“Unscientific decisions made by the southern states have left Queensland carrying the load for the East Coast Gas Market. We need a regulatory framework that supports new development, instead of holding it back.” — QLD Resources Minister Dale Last

The Australian Energy Regulator said it would continue to strengthen its approach to data collection, management and security risks as it delayed a plan to order electricity and gas market players to provide more market data. The plan, requiring quarterly and annual data on OTC contracts and power purchase agreements, is aimed at better informing the regulator on the state of market competition, but it said it would continue to consult with stakeholders on some of the issues they had raised before making any orders.

People

The Coalition is back together, with Liberal Dan Tehan handed the Energy and Emissions Reduction portfolio and WA’s Dean Smith appointed his shadow assistant minister, because Ted O’Brien has taken on the Shadow Treasurer role. The LNP’s Susan McDonald continues as Shadow Minister for Resources and Northern Australia.

“Dan, working alongside our passionate and talented party room and the Nationals, will lead our work to deliver a plan that gets emissions down but also delivers a reliable grid … Australia does have to play its part in the global response on climate change but not at any cost.” — Liberal Leader Sussan Ley

David Morris stepped down as CEO of the Environmental Defenders Office. Recruitment is underway for a successor.

Technology

Utilities are facing an AI cybersecurity paradox as AI presents an opportunity but is also a major threat. (Latitude Media)

Climate

There’s an 80% chance that at least one of the next five years will exceed 2024 as the warmest on record, and an 86% chance that at least one of next five years will be more than 1.5°C above the 1850-1900 average, the World Meteorological Organization said in a new report.

Research

New data from Domain shows energy efficient (EE) homes are attracting a premium. The Sustainability in Property 2025 report found middle-income and regional buyers are the fastest-growing segment of green home adopters, challenging the idea that sustainable housing is for the wealthy.

Some of the strongest EE price premiums are found in regional areas, where lower base prices give buyers more flexibility to pay for better performance.
Over half (52%) of houses and more than a third (39%) of units sold in 2025 included at least one energy-efficient feature, up significantly in the past five years.
Rooftop solar remains the most common feature, found in nearly 38% of houses sold with increased demand driven by strong public education on the long-term energy cost savings of solar, and the price premium attached to homes that have it.

Random

Pakistan announced a plan to power AI data centres and mine bitcoin with 2,000 MW of excess electricity from three under-used coal plants. (AFP)

What's on

June 3
NEM review online forum

The National Electricity Market wholesale market settings review will hold a webinar to consult on reforms with those unable to attend in-person events.

June 3
Australian Offshore Wind Industry Forum

Victorian Energy Minister, Lily D'Ambrosio and CEC Chief Executive Kane Thornton are headlining this Clean Energy Council event in Melbourne.

June 6
National Competition Policy analysis 2025

The Productivity Commission’s call for submissions has a June 6 deadline for an occupational licensing scheme that provides for labour mobility nationally and other competition reform options identified as a priority during the policy study.

June 6
Energy Horizons 2025

NEM review chair Tim Nelson and ARENA General Counsel Dr Cameron Kelly are among the speakers at Macquarie University’s Energy Horizons 2025: Innovation Across Evolving Energy Markets event in Sydney.

June 11
Australia Energy Regulator stakeholder forum

An online forum will be held with electricity and gas retailers and other stakeholders to discuss the findings of the Review of payment difficulty protections in the National Energy Customer Framework.

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The Energy

Bowen gets behind ISP