Australia must improve investment signals for renewables

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The Clean Energy Council says Australia must improve signals for renewables to ensure projects are built where they are needed most.

Australia needs to improve the investment signals for renewable energy generation to ensure new projects do not displace existing zero emission types, which would slow the country’s transition and do little to prevent a similar crisis to that which has engulfed the industry in recent weeks, the Clean Energy Council warned.

. The most feasible solution involves the development of a capacity mechanism that would ensure sufficient generation capacity.In a submission to the Energy Security Board, however, the CER said it was critical to ensure new renewable generation capacity was providing additional, lower-cost energy for consumers rather than simply displacing existing renewable generation due to congestion in the grid.

Congestion occurs when transmission lines are unable to transfer power to meet consumer demand, such as when there is more energy being generated in a location than the grid can transfer.

 

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