Capital

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Santos said it would ship the first LNG cargo from its Barossa gas project in the Timor Sea as it delivered its Q4 results. The project has been delayed by legal challenges and will supply gas to the Darwin LNG plant after the depletion of the Bayu-Undan field. Santos also reported a $200 million cost blowout in its Pikka oil project in Alaska, which it said was offset by lower-than-planned capital expenditure elsewhere in the portfolio. (AFR) (The Australian)

Revisions in the government’s December mid-year economic update were the highest in the 25 years of budget history tracked by the Parliamentary Budget Office, partially due to the large gap between the forecast and actual spend on the Cheaper Home Batteries Program. Of the $47.8 billion in revisions, $11.6 billion was due to the blowout of the home battery subsidy program, which was originally forecast to cost $2.3 billion. Economist Chris Richardson said “populist and rushed” policies made for more cost errors than previously. (AFR)

A new analysis from Wood Mackenzie says the fundamentals of the global solar industry will remain strong in 2026 and it will continue to grow. It identified an uptick in balcony solar PV in the US and a mega-project in the Middle East as major developments to watch this year. (PV Tech)

Bloomberg New Energy Finance forecasts $5.1 billion of investment in utility-scale solar and wind projects in Australia in 2026, with wind accounting for 95% of the total. Other key areas BNEF lists to watch in 2026 include a plateauing of rooftop solar while small-scale batteries continue to boom, wholesale power price volatility will decline and electric vehicle sales will exceed 200,000 units. (PV Magazine)​

Projects

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Fortescue CEO Dino Otranto told analysts the company was confident it had secured large scale BESS at “pricing that hasn’t really been seen” in Australia as it builds out its North Star Junction BESS, which is part of the company’s plan to decarbonise its Pilbara iron ore operations. “It’s working. It’s economic. It’s 24/7, it’s exactly what we want, and really it’s what this country needs. It will drive down the cost of electricity,” Otranto said. (Renew Economy)

A project initially pitched as being Australia’s biggest solar hybrid power plant appears to have had its ambitions cut back, with a planning decision approving a major variation. The Eurimbula Hybrid facility is UK group Elements Green’s first development in the Australian market, and was originally expected to deliver a 696MW solar farm, along with two 333MW (2 hour) grid-forming BESS. The project variation brings the solar farm down to 350MW with the disturbance footprint halved. The project received technical clearance for grid connection in May last year and is part of a grant-funded research program supported by the Australian Renewable Energy Agency, in partnership with the University of Queensland, EPEC, SMA, AEMO and Powerlink.

Policy

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The OECD said Australia was on track to reach its 2030 emissions reduction target thanks to good progress in electricity generation. The global policy group’s latest Economic Survey of Australia said effective implementation of the Safeguard Mechanism, reducing transport emissions and continuing to expand renewable generation were still needed to deliver on the energy transition. The report also calls out waning competition, with policy falling behind peers and high levels of regulatory fragmentation across the states and territories adding to the problem.

Technology

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Battery recycler Livium (ASX: LIT) said it was in discussions with South Korean solar tech firm Won Kwang S&T about building Australia’s first large‑scale PV recycling facility. Livium recently shipped 600 end-of-life solar panels to Won Kwang S&T, for recovery of critical minerals. In a statement, Livium CEO Simon Linge said “the federal government’s recently announced plans to support solar panel recycling adds to our belief that there is a great opportunity in this area”.

Australian energy grid technology group EcoJoule Energy completed the first installation of its voltage regulator technology in the UK. The project was delivered in partnership with UK Power Networks as part of a trial aimed at assessing the technology’s capability to manage voltage variability in the grid.

Climate

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Ethical investment manager Australian Ethical joined with ethical share trading platform SIX to target insurer QBE over climate disclosures. SIX said it would lodge a shareholder resolution requesting QBE disclose the extent of its oil and gas exposure. It said the insurer was the only Australian listed provider of general commercial insurance with a climate policy allowing for continued underwriting of new oil and gas projects.

Research

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Wind and solar generated a record 30% of EU electricity, higher than fossil power for the first time on record, Ember reported in its latest European Electricity Review. Wholesale electricity prices increased in 21 EU countries in 2025 compared to 2024, Ember said, with annual rises ranging from 22% in Austria to 3% in Greece, largely driven by gas.

Hydrogen projects that make it to financial close typically have a combination of stable policy support, strong off-take agreements and integrated infrastructure development, according to a new paper that examines the perspectives of investors, banks, policymakers, project developers and off-takers on project bankability. The paper, from the Oxford Institute for Energy Studies, connects failed hydrogen projects to policy ambiguity, regulatory inconsistency or weak coordination along the value chain. The role of governments in supporting successful hydrogen projects extends beyond financial support: it includes ensuring regulatory alignment, spatial planning and cross-border infrastructure coordination.