Making solar even cheaper


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In today's edition:

  • New funding for ultra low-cost solar
  • RayGen chalks up another milestone
  • Good on you says John Grimes

Chasing down the solar cost curve

The Australian Renewable Energy Agency (ARENA), a longstanding champion of solar power, launched a $60 million funding round for R&D into ultra low-cost solar.

Solar photovoltaic (PV) technology continues to evolve rapidly and remains the backbone of the clean energy transition. Universities, research groups and startups could help achieve ARENA’s goal of reducing the installed cost of solar to 30 cents per watt and bringing the levelised cost of electricity (LCOE) below $20 per MWh by 2030.

“Our ultra low-cost vision recognises that solar must be cheaper still to support and enable the renewable energy transition, especially if we are to decarbonise heavy industry and create new export industries. This funding round is seeking the pioneering innovation Australia is so well known for in solar PV to achieve that vision.” - ARENA CEO Darren Miller

The funding round has six focus areas across two streams:

  • Cells and modules ($30 million): increase efficiency, reduce cost, and improve stability
  • Balance of systems and operation and maintenance ($30 million): reduce balance of system deployment costs, reduce operations and maintenance costs, and other LCOE reduction or innovation to increase yield.

Significant milestone for RayGen

AGL Energy (ASX: AGL) added another long-duration duration storage option to its development pipeline as it works toward 12GW of new renewables and firming by 2035.

Acquired from Photon Energy, the Yadnarie solar and long duration energy storage project, which will be based on RayGen’s PV Ultra and Thermal Hydro technology, can be developed over two stages with up to 150MW of solar capacity, 90MW of thermal energy capacity and 720MWh (8-hours) of energy storage.

“Yadnarie is a groundbreaking project and will be the first utility-scale deployment of our technology. - RayGen CEO Richard Payne

The RayGen system combines high efficiency solar, long duration storage and grid stabilising services such as real inertia. The technology uses mirrors to concentrate sunlight onto Australian-made, highly efficient solar modules. As well as producing electricity, heat is captured from the modules and stored in water reservoirs for on-demand electricity dispatch.

This project builds on AGL’s relationship with Victoria-based RayGen, both as an investor in the low-cost solar firm and through an offtake agreement for production from RayGen’s Carwarp Power Plant. The Netherlands’ Photon Energy is also an investor in RayGen.

The transaction signals the start of the next phase of the project in Cleve, on South Australia’s Eyre Peninsula, which has received development approval.

Good on you

Smart Energy Council Chief Executive John Grimes was cheered as he called for a 2035 emissions reduction target in the “high 70% range” while addressing the National Press Club in Canberra.

That would be a powerful signal for investment, Grimes said, but he warned urgent reforms were also needed to realise Australia’s renewable energy potential.

“We need to speed up the grid roll-out and smash connection delays, outdated planning laws, energy market rules built for a fossil fuel past,” he said.

“It is time to call out gas lobbyists peddling disinformation,” Grimes added. “Natural gas is not renewable. Call what we pump into our homes and businesses by its real name: methane gas, a potent greenhouse gas second only to carbon dioxide in impact. Simply put, gas is a gamble.”

There was a shoutout for Climate Change and Energy Minister Chris Bowen, who he described as the best advocate for his portfolio in the cabinet and “a highly effective minister who makes up his own mind”.

“Good on him. And good on Labor. And the Greens. And the Teal Independents. And those in the Coalition who back net zero and renewables. And good on you, the people of Australia, for backing our industry in record numbers. But we need much more action, and speed.” - Smart Energy Council Chief Executive John Grimes

But he called for more haste with the $15 billion National Reconstruction Fund to diversify and transform Australia’s industry and economy, with just $500 million allocated.

Catch up

Capital

Takeover target Santos (ASX: STO) had its ratings affirmed by Moody’s Investors Service and S&P Global Ratings, with the investment grade credit profile attributed to “operational and product diversity, the high level of ownership and operator status across majority of its assets, and the added stability from its gas and LNG contracts with high quality counterparties, which largely benefit from fixed price CPI-linked contracts”.

Eyeing demand across Asia-Pacific markets and new regions, Woodside Energy (ASX: WDS) signed an MOU with Hyundai Engineering and global shipping leader Hyundai Glovis to work together on LNG project development, engineering services and shipping logistics.


Projects

Taipei-listed HD Renewable Energy (TPE:6873) acquired the Templers 111MW/330MWh BESS project in South Australia through ZEBRE, a joint venture established between HDRE and ZEN Energy earlier this year, The pairing now holds more than 1.4GW of generation and energy storage projects under construction and development in Australia.

“We continue to see increasing investor interest in energy storage projects in Australia, which is vital to stabilising our grid systems and ensuring that Australia is able to transition towards generating a higher percentage of its energy requirements from renewable sources.” - Baker McKenzie’s Australian Head of Energy and lead partner on the transaction Raymond Lou

Policy

The NSW government allocated $2.8 million in EV Kerbside Charging Grants to five recipients who will contribute another $2.2 million in private investment to install the chargers across 22 local government areas. The recipients were Charge Post, Connected Kerb, EVX, Plus ES and EF Asset Management. The chargers, to be installed over the next 12 months, range from 7kW to 22kW and will include pole-mounted and pedestal EV chargers.

“Expanding our charging network gives drivers the confidence they need to go electric, knowing ample charging options are readily available, even if they don’t have a garage or off-street parking.” - Acting NSW Minister for Climate Change and Energy Paul Scully

Meanwhile the Queensland government launched a new Japan Trade and Investment Strategy to deepen ties with one of the state’s biggest customers. Next week’s trade mission led by the state’s Minister for Finance, Trade, Employment and Training Ros Bate follows WA Premier Roger Cook’s visit to Japan to reassure gas buyers.

The US Department of Energy used a report on grid reliability to warn of the potential for hundreds of hours of blackouts under a 2030 scenario where AI data centres continue their growth, old coal plants keep closing and new power supplies come online slowly. (E&E News) (Reuters)


Regulation

The Australian Energy Market Operator (AEMO) released the 2025 Enhanced Locational Information (ELI) report, which covers each region of the National Electricity Market (NEM), which is designed to support investment and policy. It also gauges current and future congestion and curtailment, with 20GW of projects at the application to connect stage as well as 300GW of proposed future projects under consideration by developers.

“Opportunities exist in all NEM regions for renewable and firming projects to deliver energy, capacity, and network support services. This report presents key locational data to help investors understand where their projects are most likely to succeed, and where challenges, such as network congestion, curtailment, or energy losses, may arise. Not all locations are equal, and geographic network conditions must be a critical part of investment decisions.” - AEMO Executive General Manager of System Design Merryn York

Technology

The utilities industry is leading the charge on PayTo adoption, according to an inaugural index released by payments provider Zepto. With the legacy Bulk Electronic Clearing System (BECS) to be retired in 2030, payments will need to shift to the open-access, real-time payments infrastructure known as the New Payments Platform (NPP). The NPP already connects over 100 financial institutions, facilitating around $5 billion in payments daily. While 90% of the Australian retail sector still use last-century account-to-account methods, utility Red Energy is highlighted in the report as an adoption leader who benefits from lower transaction costs and faster and more secure payment options for customers.

Australia’s green hydrogen targets could require vastly more water than the government hopes. (The Conversation)


Climate

The chair of Singapore’s Monetary Authority said action to tackle climate change was facing the most uncertain global backdrop since the Paris Agreement, due to heightened trade and economic uncertainty and “other institutional supporters of climate action reassessing their commitments”. The Asian Development Bank (ADB) has said climate inaction could lead to a 17% drop in Asia Pacific’s GDP by 2070 if high emissions persist, and this could rise to 41% of GDP by the end of the century.

Meanwhile, a new report from the UK’s Office for Budget Responsibility found reaching net zero would be much cheaper for the UK government than previously expected - and the economic damages of unmitigated climate change far more severe. (Carbon Brief)


People

Prime Minister Anthony Albanese appointed Queensland career public servant Mike Kaiser as Secretary of the Department of Climate Change, Energy, the Environment and Water for a five-year term, commencing July 14. Kaiser replaces David Fredericks, who said in May that he would retire.


Research

The Next-gen renewables: Risk resilience and insurance readiness review delivered an annual analysis of the risks and opportunities shaping the sector. Australia continued at the top of the leaderboard for renewable energy investment but the insurance market for these assets is under pressure because of rising claims, extreme weather events and ever evolving technology risks.

“While capacity is available for well-managed and technically-sound assets, insurers are increasingly becoming selective on their coverage, particularly for older solar farms, wind assets in bushfire or cyclone-prone areas and Battery Energy Storage Systems (BESS) facilities with limited thermal controls or inadequate spacing.” - John Rae, Renewable Energy Leader, Willis Natural Resources

China’s solar and wind energy capacity continues to reach new heights, according to the latest Global Energy Monitor report. It found China accounts for 29% of all planned wind and solar projects globally and three quarters of projects under construction. China’s offshore wind fleet alone contributes over 50% of the overall offshore wind capacity in construction worldwide.


Random

Australian mining giants BHP (ASX: BHP)and Rio Tinto (ASX: RIO) will be among those affected by new tariffs flagged by US President Donald Trump, who ramped up his protectionist trade war and warned of more sectoral levies to come. “Today we're doing copper,” Trump said. “We're going to make it 50%.” (AFR) (CNN) (The West)

“The Minerals Council of Australia opposes the potential imposition of US tariffs on mineral exports, including the proposed 50% tariff on copper. These measures disrupt global trade, undermine investment confidence, and increase costs for consumers including in the United States … While Australia’s direct copper exports to the United States are limited, trade restrictions imposed on other key trading partners have the potential of disrupting global supply chains, increasing costs, and creating uncertainty for Australian exporters.” - Minerals Council CEO Tania Constable

What's on

July 14
State of Energy Research Conference 2025

Climate Change Authority Chair Matt Kean, NEM Review Chair Tim Nelson, and ANU Professor of Engineering Kylie Catchpole headline this Sydney event.


July 17
Battery Recycling and Manufacturing Summit

NSW Energy Minister Penny Sharpe, Battery Stewardship Council CEO Libby Chaplin, CSIRO Senior Principal Research Scientist Manufacturing Dr Adam Best, and Ecocycle CEO Doug Rowe are among the speakers at this Sydney event.


July 17-18
Carbon Capture APAC Summit

Chevron General Manager of Energy Transition David Fallon, Beach Energy CEO Brett Woods, CarbonNet Project Director Jane Burton, Geoscience Director of Offshore Energy Systems Merrie-Ellen Gunning are among speakers at this event in Melbourne.


July 17-18
Australia Wind Energy 2025

VicGrid CEO Alistair Parker, Siemens Gamesa Global CEO Vinod Philip, New.E co-lead Clare Larkin-Sykes, RWE Renewables CEO Australia Daniel Belton, Engie AU Chief Renewables Officer Laura Caspari, ACCIONA Energía Australia MD Brett Wickham and CEFC Director, Investments, Nick Hawke are among the line-up at this Melbourne event.


July 17-18
Connecting Hydrogen

Federal Assistant Minister for Energy Josh Wilson, WA Energy Minister Amber-Jade Sanderson, Chevron Australia GM Energy Transition David Fallon, ARENA Investment Director Alexandra McIntosh, Ampol CFO Greg Barnes, and Woodside Energy GM Carbon Capture and Storage Andrew Nicholls will speak at this event in Melbourne.


July 21
Safeguard Symposium

The Carbon Market Institute will host a discussion of market dynamics under the Safeguard Mechanism, finance and investment in ACCU supply, carbon price reform, and climate policy at this event in Sydney, which was rescheduled due to severe weather.


July 22
Smart Energy South Australia

Federal Energy Minister Chris Bowen will headline at the Smart Energy Council conference and expo in Adelaide.


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 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.

The Energy

The Energy is dedicated to covering the business of energy and in particular the people, capital, projects and emerging technology behind the energy transition.

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