Capital
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Uptake of small-scale solar PV installations “has likely peaked” and solar and wind investment is declining – but Bloomberg NEF believes a surge in new utility-scale batteries is set to continue increasing renewables’ contribution to the NEM. Yet while 9.9GW of BESS are currently under construction, BloombergNEF’s new Australia Energy Transition Outlook 1H 2026 argues that “more needs to be done, and faster, for Australia to achieve its target for 82% renewable energy penetration by 2030. Paradoxically, mild weather and fewer severe supply disruptions saw intraday arbitrage drop by 63% year-on-year even as the increasing penetration of renewables into the NEM drove prices negative 23% of the time.
Modelling by consultancy Acil Allen, commissioned as part of a proposed extension of AEMO powers, found wholesale gas prices would spike to over $20 a gigajoule if no changes were made from current market settings — double the current Victorian rate. The modelling also warns the use of emergency powers required in the east coast market in 2022 could be repeated should reforms not be pursued, a crisis saw prices rise to $40/GJ. (The Aus)
 Projects
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Origin Energy’s 250MW Supernode BESS has been commissioned and is generating revenue, the company announced in its latest quarterly report – in which it also revealed that its 460MW Eraring BESS has been “online and generating revenue” since December. The announcements reflect a significant step forward for the company, which Origin CEO Frank Calabria said had delivered the large-scale Eraring battery “on time and within budget” – leading the company to approve a fourth stage of the battery that will extend the duration of its stage two dispatch to cover evening peak demand. Origin is working to build a portfolio of 1.7GW of owned and tolled batteries.
On and off-grid solar systems and BESS projects comprise the lion’s share of the 25 new tourism infrastructure projects to be supported by the Queensland Government, with $4 million in Building Resilient Tourism Infrastructure Fund: North Queensland Tropical Low (BRTINQ) funding aiming to improve the sector’s preparedness for natural disasters, specifically in areas impacted by last year’s summer tropical low.
Policy
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Federal Treasurer Jim Chalmers has directed the Board of Taxation to undertake an independent review of the government’s thin capitalisation reforms – a series of policy initiatives intended to crack down on companies’ “excessive use of debt deductions to avoid paying tax in Australia”. Such deductions have allowed multinationals to avoid billions in Australian tax by profit-shifting using paper loans to related parties. The review, which was stipulated when the legislation passed in 2024, will see the Board undergo a process of public consultation and report back to Treasury within 12 months.
The Andrew Forrest-led Fortescue Metals Group has repaid $20 million of the $100 million in state and federal funding given to its failed green hydrogen project in Gladstone, Queensland – but the state government is out for blood, demanding the company pay back $66 million in taxpayer funding provided to the “dud project” by the former Labor government. Fortescue heavily spruiked its effort to develop and commercialise the emerging technology – even promoting it to overseas investors – despite the plant reportedly testing electrolysers for just seven weeks at enormous expense. (Sydney Morning Herald)
Rooftop solar rebates have created a ‘split incentive’ that is disincentivising landlords from funding installation of solar systems to benefit the third of Australians that rent, lobby group Solar Citizens has argued on the last day of submissions to the upcoming federal budget. The group says that issue – which has arisen because landlords bear the capital expenses of solar installations but tenants reap the financial benefits from bill savings – should be addressed with state based minimum energy efficiency standards and tax incentives such as accelerated depreciation of energy efficiency and clean energy upgrades, which it projects would cost just the government $5m per year.
Regulation
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Ergon Energy and Energex have received approval to lease the surplus capacity of 24 and 6 BESS units, respectively, to third parties through the end of 2042 after the AER released decisions to grant the companies ring-fencing waivers. The organisation based the decision on its alignment with National Electricity Objectives and said that, without the waivers, the companies “would otherwise be prevented from delivering broader system value” from the BESS units.
Technology
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Space-based data centres are the latest frontier for tech entrepreneur Elon Musk, who has helmed a proposed merger between SpaceX and xAI that would provide the design and operational smarts to bring the idea to fruition. With the land and energy required to support terrestrial facilities becoming increasingly expensive, space-based data centres would put hundreds of networked solar-powered satellites into orbit – where solar power is infinite and space’s thermal void means cooling is no longer an issue. (Reuters)
In other Musk news, Tesla has relaunched a rooftop solar tile previously launched in 2016, with "superior aesthetics" even as the company backs away from two of its flagship EV models. (Canary)
The scope of Saudi Arabia’s proposed The Line megacity has been slashed, with what was once envisioned as home to 9 million people – and an energy infrastructure run entirely on renewables – now being floated as an AI data centre hub that will tap its enormous supporting energy infrastructure, and sea water for cooling to overcome the challenges of operating data centres in the country’s punishingly hot climate. (Tom’s Hardware)
People
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Shadow Energy Minister Dan Tehan has been given the resources portfolio amidst a major Opposition cabinet shakeup, in which leader Sussan Ley has reassigned the portfolios of restive Nationals members to a range of Liberal shadow ministers. Tehan assumes the portfolio after the resignation of Nationals Senator Susan McDonald on January 21. (The Guardian)
EnergyAustralia executive Nicholas Giles, who has spent the past five years working in retail roles, has accepted a new role supporting the NEM’s biggest customers as C&I Structured Products Leader for Renewables, starting in April.
Twenty-year Lion veteran Alicia Purtell, who most recently worked as Chief People & transformation Director, will join Origin in April as Executive General Manager for People & Culture.
