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Hey Reader, in today's edition:
- New costings for boffins
- Make clean energy great again, here
- Boost for the CIS
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No-brainer energy build out
CSIRO’s GenCost 2024-25 report confirms wind and solar generation backed by storage and transmission is the lowest-cost new-build option for Australia, and lifts the veil on concerns raised by industry, advocates, developers and planners.
Escalating construction costs in Australia and supply chain woes, particularly for gas turbines where the waiting list is blowing out to years, remain a challenge.
Prepared in collaboration with the Australian Energy Market Operator (AEMO), the modelling shows nuclear small modular reactors (SMRs) are the most costly even with new data from Canada’s pioneers who want to get a jump on a new export industry.
There’s also a new “installation cost escalator” with a higher figure applying to stronger abatement scenarios.
GenCost is one of several key reports that help support the pointy end of Australia’s energy system planning.
"We’ll use the capital costs for generation and storage from GenCost in the upcoming Draft Integrated System Plan in December," AEMO Executive General Manager System Design, Merryn York, said.
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Make clean energy great again, here
Australia could attract some of the world’s best companies, talent and capital as clean industry leaders and investors adapt to the post-Inflation Reduction Act era.
The Future Made in Australia package offers comparable tax credits and development-focused tools like the Capacity Investment Scheme that could attract capital and talent from the United States (and China).
Jigar Shah, former Director of the Loans Program Office (LPO) in the US Department of Energy, says Australia has an “historic opportunity” to position itself as the global hub for clean energy innovation and manufacturing
In a keynote speech at the Australia Clean Energy Summit in Sydney he will say the conditions are perfect to realise Australia’s potential and help diversify the economy into emerging, high-growth industries.
It needs to be private sector led, and government enabled, according to Shah.
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Expert view
“Australia's policies are really strong. Now is the time to focus on execution, focus on getting the money out the door, and prove that Australia can do big things. But the window of opportunity is narrow and highly competitive. Many of these projects are shovel-ready, but global competition is fierce. Now is the moment to compete.
“There is an opportunity to co-create a model to leverage existing Australian Government support and incentives that attract US projects, adapt and localise them, and secure them in Australia. The goal is focusing Australia’s existing programs to scale up financing, attract private investment, and build a durable ecosystem for clean energy industrial growth.
"There are insights and learnings from the LPO - such as the Liftoff Reports - that can be applied in this market to help enable and accelerate execution. It's important to take industry's insights and create a fact base that is supported by government that attracts private sector capital into these project spaces.
“Companies are looking to see where they can commercialise their tech. This is a major opportunity to help Australia realise its Future Made In Australia policy ambitions. It’s also a national security opportunity - to shore up onshore capability and diversify supply chains.”
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Jigar Shah
ACES 2025 keynote and former Biden energy official
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Super-sizing the CIS
Energy Minister Chris Bowen will announce a 25% increase in the Capacity Investment Scheme (CIS) to speed up the renewable energy rollout as 2030 climate targets look shaky. (AFR)
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Catch Up
Capital
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The NSW Government will launch a new tender for 500 megawatts of firming capacity, seeking bids from battery, VPP and gas proponents to stem the shortfall from the state’s retiring coal-fired power fleet. The priority will be on projects that can be built by 2027/28. (Renew Economy) (AFR)
How wind and solar power helps keep America’s farms alive. (The Conversation)
 Projects
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US wind power installations more than doubled in Q1, compared with 2024, Wood Mackenzie said. But US policy uncertainty led to a 50% decrease in wind turbine orders. (Windpower)
Policy
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UN Climate Change Executive Secretary Simon Stiell encouraged Australian policymakers not to “settle for what’s easy” when it comes to setting the 2035 emissions reduction target. In a speech to the Smart Energy Council, Stiell said Australia’s next national climate plan wasn’t just a policy milestone, but a “defining moment” to create hundreds of thousands of well-paid, future-facing jobs. (The Conversation)
“Australia has a strong economy and among the highest living standards in the world. If you want to keep them, doubling down on clean energy is an economic no-brainer. “
Simon Stiell
UN Climate Change Executive Secretary
Stronger minimum energy performance standards for rental properties, better targeted government support programs and proactively identifying customers in difficulty are the actionable insights topping Energy Consumers Australia’s new report on energy hardship. The report finds around one in five households are vulnerable to, or experiencing, energy hardship.
Technology
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California will be the first US state to actively manage power outages with AI after a successful pilot by the California Independent Systems Operator (CAISO). “Genie” was purpose-built for CAISO by energy services provider Open Access Technology International, and is designed to help it meet the compounding demands of outage coordination. (Latitude Media)
The all-time record for wind power in the NEM was broken three times in the past two and a half weeks (Watt Clarity)
Under pressure from reduced incentives and removed tax credits, America’s rooftop solar and battery industries can survive and even thrive if they focus their efforts on becoming virtual power plants. (Canary Media)
Climate
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Australians with rooftop solar could be more likely to see their panels smashed by giant hailstones in a warming climate according to new research from UNSW Sydney’s Institute for Climate Risk and Response. Its weather simulations saw increases in hail frequency in the Sydney/Canberra and Brisbane regions and robust increases in maximum hail size around Melbourne, Sydney/Canberra, Kalgoorlie, and Perth.
Research
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Vehicle-to-grid technology patents are on the rise, according to a study that explored innovations in power trading systems, virtual power plants, and advanced battery management technologies. Companies including Toyota, IBM and Ford are leading in V2G-related intellectual property, the researchers said, particularly in domains like bidirectional fast-charging, decentralised power control, and smart energy exchange.
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What's On
July 29-30
Australian Clean Energy Summit (ACES) 2025
AEMO CEO Daniel Westerman, AEMC Chair Anna Collyer, Climate Change Authority Chair Matt Kean, AGL CEO Damien Nicks, Iberdrola Australia CEO Ross Rolfe and Squadron Energy CEO Rob Wheals are among the lineup at the Clean Energy Council’s flagship event in Sydney.
July 30
Australian Sustainable Finance Summit
Treasury Deputy Secretary Angelia Grant, Original Power Executive Director Karrina Nolan, and Australian Office of Financial Management CEO Anna Hughes are among the line-up at this Sydney event.
August 7-8
2025 ACCC/AER Regulatory Conference
Former chair of UK energy regulator Ofgem Professor Martin Cave, AEMC Commissioner Sally McMahon, Treasury Assistant Secretary - Competition Taskforce Anna Barker, Essential Services Commission Chair Gerard Brody, and Marinus Link Chair Sandra Gamble are among the speakers at this event in Brisbane.
August 11
RE-Alliance Briefing for Industry and Government
Bridget Ryan, author of the RE-Alliance report Retirement age renewables – delivering for Australian communities, will discuss required management responses at this online event.
August 13-14
2025 Australasian Emissions Reduction Summit
Victoria’s Minister for Climate Action, Energy and Resources Lily D’Ambrosio, Climate Change Authority Chair Matt Kean, Carbon Market Institute Chair Dr Kerry Schott, Co-Founder and CEO of CORE Markets Chris Halliwell, Investor Group on Climate Change CEO Rebecca Mikula-Wright and BHP Australia President Geraldine Slattery will speak at this event in Melbourne.
August 14-15
First Nations Clean Energy Symposium
Government, industry, academics and regulators will join over 200 First Nations leaders from around Australia at this event on Kabi Kabi country (Sunshine Coast).
August 18
National Press Club
Productivity Commission Chair Danielle Wood will speak on the “Growth imperative: How to fix our productivity problem” at this event in Canberra.
August 26-27
Australian Renewable Heat Conference
Climate Change Authority Chair Matt Kean, ARENA investment manager Peter Haenke, and AGL sustainability expert Brendan Weinert will speak at this event in Sydney.
August 26-28
2025 New Zealand Wind Energy Summit
NZ Minister of Energy Simon Watts, Secretary-General of the World Wind Energy Association Stefan Gsänger, Global Wind Energy Council CEO Ben Backwell, Commerce Commission Chair Dr John Small, and Transpower Executive General Manager - Future Grid John Clarke headline this event in Wellington, NZ.
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