Solar and windfarm investment is drying up – and Australia needs a wake-up call on the future of the electricity grid

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The energy transition is a race and what’s needed are policies that will drag large-scale renewable power into the system faster

This is not a one-off. The first three months of the year were even worse. It’s the slowest start to a year since the council started recording this data in 2017.

There is an argument that these decisions are now unavoidable. We obviously can’t shut coal plants before replacement generation is ready, and it’s possible some generators should be kept on the books to be switched on only if needed. In Victoria’s case, it’s at least tied to a goal of 95% renewable energy – and, therefore, no coal – by 2035.

In the three months to the end of June investors made financial commitments on only four renewable energy projects But there are other deeply ingrained problems. They include the idea that the market will drive the shift to a renewables-dominated system just because solar and wind energy generation is cheaper than fossil fuels.

The only credible option that can rapidly cut emissions is a system that runs on solar and wind plus back-up – batteries, inter-regional transmission, pumped hydro and, initially at least, some fast-start gas plants. Despite what the Coalition and its backers claim, there is plenty of evidence this mix can provide what is needed, and there are no available or affordable alternatives.

 

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