### Clean Energy Australia

2024


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EXPLORE

INVEST

ACCELERATE

Navigating the energy transition?
Harness the momentum with
MinterEllison: your end-to-end
renewable energy advisor.


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# AUSTRALIA’S FIRST 1.5°C RETAILER

_* In 2022 ZEN Energy became Australia’s first electricity retailer to have a near-term science-based emissions reduction target in line_


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We respectfully acknowledge Aboriginal and Torres Strait
Islander peoples as the Traditional Custodians of the
lands and waters on which we work and live. We commit
to collaborate with First Nations communities, to promote
sustainable practice, protect ancient sites and culture
with equitable access to the benefits of clean energy.
Sovereignty has never been ceded.

We acknowledge Elders, past and present, and their
continuing culture and connection to Country.

Cover image:
Liontown’s Kathleen Valley Lithium Project Wind Farm
Northern Goldfields, WA
Tjiwarl Country
(Zenith Energy)

Rye Park Wind Farm
Rye Park, NSW
Wiradjuri Country


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###### Contents

Introduction

A message from our CEO 2

About us 4

2023 snapshot 9

Industry outlook

Small scale 15

Large scale 19

Politics

Federal politics 22

State targets and commitments 24

Renewables by state 26

Employment 29

Renewables for business 35

Electricity prices 40

Transmission 42

Energy reliability 46

International update 49

Tech profiles

Battery storage 55

Bioenergy 58

Hydro and pumped hydro 61

Hydrogen 64

Rooftop solar (including medium-scale) 67

Large-scale solar 79

Wind 85

Acknowledgements 91


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INTRODUCTION
###### A message from our CEO

With a fantastic set of results
for rooftop solar and recordbreaking figures for investment
in utility scale storage, 2023

GW

was another strong year for 5.9

Renewable capacity added

renewable energy in Australia.

in 2023

Meanwhile, we saw a wave of ambitious policy (2022: 5 GW)
decisions at federal and state levels aimed at
accelerating momentum for the sector, meaning 2024
and beyond will be pivotal years for clean energy.

Renewable energy provided 39.4 per cent of Australia’s
total energy generation in 2023, a 9.7 per cent increase GW

#### 3.1

from 35.9 per cent in 2022. That’s a remarkable Capacity added by rooftop
achievement given renewables represented just 17
per cent of Australia’s electricity in 2017, when strong solar in 2023
investment really took off.

(2022: 2.7 GWh)

Combined large and small-scale renewable capacity
added reached approximately 5.9 GW in 2023, a figure
that almost topped the 2021 record of 6.3 GW, and was
significantly up from 5 GW in 2022. This was comprised $
of 2.8 GW from utility scale projects coming online,

billion

and 3.1 GW from rooftop solar. Utility-scale projects 4.9
included 1.9 GW of large-scale solar capacity – up from New financial commitments to
841 MW in 2022 – and 942 MW of wind capacity, down large-scale storage in 2023
from 1.4 GW in 2022.

(2022: $1.9 billion)


2023 was also a record-breaking year for new financial
commitments to large-scale storage. In Q2, investment
in big batteries broke the billion-dollar mark during a
quarter for the first time, and by Q4 that record had
been broken. Total investment in large-scale storage
stood at $4.9 billion by the end of 2023, up from
$1.9 billion in 2022 – a 157.9 per cent increase. The
combined capacity of the large-scale storage projects
reaching financial commitment in 2023 totalled 3,949
MW / 9,905 MWh.


Meanwhile, Australia’s world-leading rooftop solar
industry continued to flourish, driving Australia’s clean
energy transition forward with the largest contribution
(3.1 GW) of any technology, significantly up from 2022
(2.7 GW). 337,498 solar systems were installed across
Australia in 2023, up from 315,499 in 2022. These are
terrific numbers, and demonstrate the value Australians
see in rooftop solar, as well as the benefits it brings.


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Unfortunately, 2023 saw a slowdown in new financial The announcement of the Australian Governments
commitments to utility scale generation capacity at $1.5 expansion of the Capacity Investment Scheme, to
billion, significantly down on $6.5 billion for 2022. support the addition of 23 GW of new renewable

electricity generation capacity between 2024 and

This reflects a more complex and challenging 2027 and a further 9 GW of dispatchable capacity, is
landscape for new investment decisions, which intended to get large-scale investment back on track.
continue to include a constrained grid, slow planning There will however need to be urgent and careful policy
and environmental assessment processes in some design undertaken in the first half of 2024 to ensure
jurisdictions, higher costs and tighter markets for the program realises its critical objective to turbocharge
equipment and labour. The policy environment has private investment in the coming years.
also been uncertain, with a long-term Renewable
Energy Target which is scheduled to wind-up at the Australia’s transition to a clean electricity system is
end of 2030. closer than ever, and I believe we are now building the

critical foundations that will deliver a transformative

In its Draft 2024 Integrated System Plan, the acceleration in renewables. Now is the time to ride
Australian Energy Market Operator (AEMO) advised the wave of policy ambition and turn Australia’s huge
Australia will need to add at least 6 GW of utility pipeline of ‘prospective’ projects into ‘built’ projects. The
scale generation to the National Electricity Market Clean Energy Council, alongside our valued members,
annually to meet the Federal Government’s target of will be leading the charge for this clean energy future.
82 per cent renewables by 2030. While 2.8 GW of
new capacity across all of Australia in 2023 is a solid Kane Thornton
number, Australia clearly needs a rapid acceleration Chief Executive
in investment and deployment. Clean Energy Council

Avonlie Solar Farm
Narrandera, NSW
Wiradjuri Country
(Beon Energy Solutions)


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INTRODUCTION
###### About us

The Clean Energy Council
is the peak body for the
renewable energy and energy
storage industry in Australia.
We represent and work with
hundreds of leading businesses
operating in solar, wind,
hydro, bioenergy, energy
storage, hydrogen, emerging
technologies and others.

We also manage leading industry
compliance, certification and
education programs to help
drive best-practice standards in
rooftop solar and batteries.


We are committed to accelerating the transformation
of Australia’s energy system to one that is smarter and
cleaner. The Clean Energy Council leads and supports
the growth of the clean energy industry in Australia by:

-  Providing a strong voice for our
members

-  Standing up for and promoting the
clean energy industry

-  Developing and driving effective
policy and advocacy

-  Working with industry to continually
improve standards and maintain
integrity

-  Working closely with local, state and
federal governments to increase
demand for clean energy products

-  Providing services and initiatives
to members and the wider industry
that help to grow the sector


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Clean Energy Council members
are companies who work in or
support the clean energy sector.
They join to receive various
member benefits such as getting
the latest industry updates,
networking opportunities,
contributing expertise to key
industry discussions and having
a central voice to represent
the sector.

A special thank you must go to our sponsoring
members. Our sponsoring members are industry
leaders at the forefront of influence and innovation.
They take an active role in the Clean Energy Council
through policy and advocacy initiatives and have
access to key industry engagement opportunities.

2024 Events calendar


In 2023 we welcomed:
#### 149

new members
#### 65

event partners




June 4–5
Australian
Large-scale
Solar and
Storage
Summit

Brisbane

June 1

Melbourne Member Mixer

July 16–17
Australian

Summit

Sydney

Brisbane Member Mixer

Clean Energy

August 8

October 8–10
Australian

Summit

Melbourne

September 10

Perth Member Mixer

September 3

Darwin Member Mixer

August 29

Adelaide Member Mixer

Wind Industry

October 23–24

All Energy

Melbourne

June July August September October


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Clean Energy Council
2023 highlights

Advocated for distributed energy policy priorities to the Energy
and Climate Ministerial Council, resulting in many priorities being
addressed, including the establishment of a taskforce that will work
on national standards and a distributed energy roadmap


Campaigned for a
response to the US
Inflation Reduction act,
resulting in government
commitments for
hydrogen, energy savings
for households and
businesses, and massive
Federal Government
support for new largescale generation and
storage capacity


Secured funding from the
Victorian Government
for the Victorian Clean
Energy Required Training
(V-CERT) project, to
develop a training matrix
and worker digital skills
passport for Victorian
clean energy projects


Published Winding
Up report, on
decommissioning
and recycling of
wind turbines


-----

Launched inaugural
Careers for Net Zero
job fair promoting net
zero jobs

## SEP


Campaigned against
changes to Victoria’s
capital improved value
assessment, which
would have resulted in
renewable energy assets
paying a fire services
property levy 20 times
the current level. The
campaign resulted in
renewable energy being
classified as a community
benefit


Published Power
Playbook report, with
45 recommendations
for accelerating the
clean energy transition

## NOV


Established the
Australian Offshore
Wind Taskforce to
coordinate state and
federal governments
with offshore wind
developers


Biggest ever Australian
Clean Energy Summit
(ACES)

## JUL AUG


Announced plans
to work with the
NSW Anti-Slavery
Commissioner to
develop renewable
energy Code of Practice


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Bango Wind Farm
Boorowa, NSW
Ngunnawal Country


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INTRODUCTION
###### 2023 Snapshot

It was a strong year for rooftop
solar and utility scale storage
in 2023, and overall figures
for capacity added are up on
2022, though there has been
a significant slowdown in new
financial commitments to largescale generation.

Renewable energy accounted for 39.4 per cent of
Australia’s total electricity generation in 2023, up
from 35.9 per cent in 2022 and 32.5 per cent in
2021. While there is still a fair way to go to reach
the Federal Government’s target of 82 per cent
renewables by 2030, there were nevertheless plenty
of positives for the industry in 2023.

There were records broken in terms of new renewable
capacity added, the rooftop solar sector continued
to lead Australia’s clean energy transition, and the
utility scale storage sector had its strongest-ever
year, offset by a significant slowdown in new financial
commitments to large-scale generation projects.

A new-record 5.9 GW of renewable capacity was
added to the grid in 2023, up from 5 GW in 2022.
Of that 5.9 GW, 3.1 GW was provided by rooftop
solar and 2.8 GW from utility scale generation. In
2022, rooftop solar provided 2.7 GW and utility scale
provided 2.3 GW.

In its Draft Integrated Systems Plan released in late
2023, the Australian Energy Market Operator indicated
Australia would need to bring on at least 6 GW of
new utility scale capacity in the National Electricity
Market each year in order to meet the Government’s
82 per cent target. While 2.8 GW of new capacity in
2023 is a solid number, Australia clearly needs a rapid
acceleration in investment and deployment.


###### 39.4%

Australia’s electricity generation
from renewable sources, 2023

(2022: 35.9%)

GWh
###### 24,985

NSW renewable energy
generation, highest of
Australian states

(2022: 21,765 GWh)

GW
###### 3.1

Rooftop solar capacity added
in 2023


(2022: 2.7 GW)
###### 56

Large-scale generation projects
under construction at the end
of 2023

(2022: 72)


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Rooftop solar leads the way

At 3.1 GW, rooftop solar was the largest contributor
to Australia’s renewables drive, accounting for 28.5
per cent of all renewable energy and 11.2 per cent of
energy generation overall, up from 25.8 per cent and
9.3 per cent respectively in 2022. Approximately 3.7
million Australian households now have rooftop solar
PV systems installed, up from approximately 3.4 million
at end-of-year 2022.

The total number of new rooftop solar installations
for 2023 was 337,498, up from 315,499 in 2022. The
average size of systems installed continued to trend
upwards, too, reaching 9.3 kW compared to 8.7 kW
in 2022. The trend towards larger system sizes may
begin to plateau as the years go by, as technological
advancements allow for more efficient solar panels
and inverters, and there is a growing emphasis on
optimising the size of solar installations to match
a household’s energy needs. But that trend would
represent effective optimisation and not be seen
as a negative.

As the large-scale sector experiences something of a
slowdown (see below), Australia’s world-leading rooftop
solar sector continues to demonstrate that it is the
quiet achiever of the clean energy transition.

Meanwhile, household batteries continue to grow in
uptake. According to SunWiz figures, roughly 56,000
household storage units were installed in 2023, up from
around 43,000 in 2022 and 37,000 in 2021, as more
and more Australians embrace energy independence.

Storage sensation

Speaking of batteries, it was a remarkable year for
the utility scale storage sector, both in terms of new
financial commitments and assets under construction.

Twenty-seven large-scale batteries were under
construction at the end of 2023, up from 19 in 2022,
for a combined capacity of 5 GW / 11 GWh, up from 1.4
GW / 2 GWh in 2022. The largest utility scale storage
project currently under construction is the 850 MW /
1,680 MWh Waratah Super Battery in New South Wales,
which is being delivered by the NSW Government
though its EnergyCo authority. Construction is
scheduled to complete in August 2025.

On the financial front, big batteries boomed in 2023.
Q2 saw the two-billion-dollar mark for new large-scale
storage investment broken in a quarter for the first
time, and Q4 broke that record just a few months later,
making 2023 the strongest ever year for new financial
commitments in the large-scale storage space, at $4.9
billion including hybrid projects with storage elements
($4.7 billion for storage-only projects). By comparison,
2022 reached $1.9 billion in new financial commitments
to large-scale storage.


Mixed outlook for large-scale
generation

The outlook for large-scale generation, meanwhile,
is more mixed. While the year saw a solid number
of large-scale projects commissioned, financial
investment commitments – a lead indicator for future
build – were at their lowest level since the Clean Energy
Council began tracking investment data in 2017.

Utility scale solar was the biggest provider of
new capacity in 2023, with 1.9 GW, up from 841
MW in 2022. That capacity came from 15 newly
commissioned projects, up from 12 in 2022. The
largest commissioned projects were Neoen’s Western
Downs Green Power Hub in Queensland, and ACEN
Australia’s New England Solar Farm Stage 1, in NSW.
Both of those are 400 MW developments and are now
the joint-largest solar farms in Australia.

The large-scale wind sector had a less successful year,
with 942 MW of new capacity added, down on 1.4
GW in 2022. Of the seven wind farms commissioned
in 2023, the largest was Squadron Energy’s 244 MW
Bango Wind Farm in NSW.

Despite a downturn in capacity added, wind power
still accounts for the highest percentage of Australia’s
renewable energy generation at 33.9 per cent. As a
proportion of Australia’s overall energy generation, wind
power stood at 13.4 per cent in 2023, up from 12.8 per
cent in 2022.

There were 56 renewable energy generation projects
under construction as of December 2023, down from
72 at the same point in 2022. The combined capacity
of these projects is approximately 7.5 GW, significantly
down on 9.5 GW at the end of 2022.

Of those 56 projects, 38 are large-scale solar projects
and 13 are wind farms, both down from 2022,
when there were 48 solar and 21 wind projects in
development. There are currently three combined
wind/solar projects in development (130 MW), and two
biomass projects (61 MW).

In 2022, the renewables industry in Australia
commenced construction of over 5 GW of wind and
solar farms, which was the highest year for new
renewable construction commitments on record. The
figure for 2023 stands at 2.7 GW-worth of wind and
solar – a significant reduction and representative of the
wider slowdown in the industry.

Investment slowdown

Despite there being some positives for large-scale
renewables, 2023 was a particularly poor year for new
investment in utility scale generation, which is usually a
strong signifier of where the sector is headed.


-----

Renewable electricity generation
in 2023 (all sources)

solar

Renewable energy provided 11.2%

Medium
39.4% of Australia’s electricity

and large
generation in 2023, up from scale
35.9% in 2022 solar

Hydro

7%
6.5%

Bioenergy

1.4%

39.4%

Black coal Brown coal Gas Non-metered Liquids

fossil fuels

39.3% 13.4% 7.3% 0.5% 0%


New financial commitments to large-scale generation
projects in 2023 stood at $1.5 billion, substantially
down on $6.5 billion in 2022. Even factoring in the
exceptional performance of the large-scale storage
sector in 2023, overall investment figures remain down
on 2022.

There were seven new financial commitments to solar
projects in 2023 for a combined 921 MW, down from
10 projects and 1.5 GW in 2022. There were no new
announced financial commitments to utility scale wind
projects in 2023, compared to six in 2022.1

The rolling 12-month quarterly average for investment
on generation projects in Q4 2023 was the lowest
it has been since the Clean Energy Council began
collecting data in 2017, dipping below $1 billion for only
the third time since 2017.

The Federal Government’s decision to expand its
Capacity Investment Scheme in late 2023 is intended
to arrest and reverse this trend. For more information
on what the Government is doing to boost renewables
in Australia, particularly in response to international


Wind

13.4%


Rooftop
solar


policy movements such as the US’s Inflation Reduction
Act, see the rundown on federal politics on page 22.

For more information on the various sectors in
Australian clean energy, check out the tech profiles
from page 52 onwards.

Fossil fuels and international
renewables

The amount of coal in Australia’s electricity system
fell to 52.7 per cent in 2023, down from 54.6 per
cent in 2022. Similarly, gas currently generates 7.3
per cent of energy, down from 8.9 per cent in 2022.
These incremental reductions in fossil fuels are
inevitable as more and more renewables are added
to the grid, although uptake of renewables needs
to be accelerated in order to bring down Australia’s
reliance on fossil fuels and usher in a clean economy
in Australia.

According to the International Energy Agency’s
Renewables 2023[2] report, “global annual renewable
capacity additions increased by almost 50 per cent


1 The Uungula wind farm reached financial close in late 2023, but was not publicly announced until 2024, meaning it was not captured in the data for this report.

2 International Energy Agency, Renewables 2023


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Australias electricity generation mix
in 2023 (fuel types by MWh)


100%

75%

50%

25%

0%

21.23 bn

Investment in and
capacity of energy
generation projects

Projects currently at NT
financial commitment Investment (AUD$)
or under construction 48.7 m

(As at 31 December 2023) Capacity QLD

34.2 MW Investment (AUD$)

7.0 bn

Capacity

WA 3.82 GW

Investment (AUD$)
2.56 bn

Capacity

SA

0.77 GW

Investment (AUD$)
1.62 bn

Capacity
0.94 GW NSW

Investment (AUD$)
5.76 bn

Capacity
VIC 4.20 GW

Investment (AUD$)
4.22 bn

Capacity
2.53 GW

Total investment (AUD$)

TAS

Total Capacity
12.29 GW


Type of Fuel Total MWh MWh %

Black Coal 92,843,404 39.3%

Brown Coal 31,682,666 13.4%

Wind 31,559,920 13.4%

Rooftop solar 26,553,206 11.2%

Gas 17,267,583 7.3%

Solar 16,478,113 7.0%

Hydro 15,306,966 6.5%

Bioenergy 3,248,732 1.4%

Non-metered fossil 1,218,230 0.5%

Liquids 111,998 0.0%

Total 236,270,819 100.0%

NT

Investment (AUD$)
48.7 m

Capacity QLD
34.2 MW Investment (AUD$)

7.0 bn

Capacity
3.82 GW

SA

Investment (AUD$)
1.62 bn

Capacity
0.94 GW NSW

5.76 bn

Capacity
VIC 4.20 GW

Investment (AUD$)
4.22 bn

Capacity
2.53 GW

TAS

Investment (AUD$)
8.0 m

Capacity
5.0 MW


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to nearly 510 GW in 2023, the fastest growth rate
in the past two decades”. Meanwhile, according to
BloombergNEF, global investment in the renewable
energy transition hit a record USD $1.8 trillion in 2023,
up 17 per cent from a year earlier, with electrified
transport being the main driver of that growth. On a
global level, electrified transport overtook renewable
energy as the largest driver of spending, at USD $634

Renewable energy projects
completed in 2023


billion, up 36 per cent year-on-year. Renewable energy
investment rose 8 per cent to reach $623 billion.

For more on international renewables in 2023, see
page 48.

For a more detailed rundown of clean energy in Australia
in 2023, visit the individual sections in this report.

GW
#### 2.8

Total capacity of large-scale
renewable projects completed
in 2023


Tech State Project Lead Operator-Owner Capacity (MW)

Solar QLD Western Downs Green Power Hub Neoen Australia 400.0

Solar NSW New England Solar Farm Stage 1 ACEN Australia 400.0

Wind VIC Murra Warra Wind Farm Stage 2 Squadron Energy 209.0

Solar VIC Kiamal Solar Farm Total Eren 200.0

Solar NSW Avonlie Solar Farm Iberdrola Australia 200.0

Wind QLD Dulacca Wind Farm Octopus Australia 180.0

Solar QLD Columboola Solar Farm Hana Financial Investment 162.0

Wind NSW Bango Wind Farm 1 Squadron Energy 159.0

Wind QLD Kaban Wind Farm Neoen Australia 157.0

Solar QLD Edenvale Solar Park Eneos & Sojitz Corporation 146.0

Wind VIC Berrybank 2 Wind Farm Global Power Generation 109.2

Solar SA Port Augusta Renewable Energy Park - Solar Farm Iberdrola Australia 107.0

Solar QLD Mica Creek Solar Farm APA Group 88.0

Wind NSW Bango Wind Farm 2 Squadron Energy 84.8

Solar QLD Warwick Solar Farm The University of Queensland 64.0

Wind QLD Kennedy Energy Park Wind & Solar Windlab 58.2

Solar WA Mt Keith Solar Farm TransAlta 27.4

Solar VIC Cohuna Solar Farm Enel Green Power 27.3

Solar SA Murray Bridge - Onkaparinga Pipeline Pump 2 South Australia Water Corporation 13.0

Solar WA Leinster Solar Farm TransAlta 10.7

Solar WA Nova Nickel Mine Solar Upgrade Zenith Energy 10.0

Solar NSW Wathagar Solar Sundown Pastoral Company 8.7


-----

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INDUSTRY OUTLOOK
###### Small-scale renewable energy


Rooftop solar in Australia had
another bumper year in 2023,
with solar installations and
capacity added both significantly
up on 2022, while the uptake
of household battery systems
continues to increase.

In 2022, rooftop solar generated 9.3 per cent of
Australia’s electricity from all forms, and in 2023 this
figure rose to 11.2 per cent, providing more than a
tenth of Australia’s total energy for the first time. This
is another key milestone for the sector, and more
proof that Australians are buying into the industry and
looking to take more control of their energy costs. The
year as a whole was a very positive one, with figures
up across the board.

New capacity added from rooftop solar totalled 3.1
GW from 337,498 new rooftop solar installations.
Both of those figures are significantly up on 2022,
when 2.7 GW was added from 315,499 installations.
The sector didn’t quite reach the record levels seen
in 2021, but wasn’t far behind. According to SunWiz,
November 2023 was the biggest ever month for
rooftop capacity installed.[1]

In 2023, the 3.1 GW of capacity added by rooftop
solar comfortably surpassed that of the utility scale
sector, which came in at 2.8 GW. The difference of
0.3 GW between rooftop and large-scale generation
was similar to 0.4 GW in 2022. There are now
approximately 3.7 million households with rooftop
solar systems installed in Australia, up from 3.4
million at the end of 2022.

New South Wales led the way for installed capacity on
a state level – as it did in 2022 – with just over 1 GW:
the single-largest state-specific rise in installed rooftop
capacity on record. Only WA and the NT recorded
lower levels of rooftop solar capacity added than in


#### 337,498

rooftop solar
installations in 2023

(2022: 315,499)
GW
#### 3.1

rooftop solar capacity
added in 2023


(2022: 2.7 GW)
#### 56,000+

household battery systems
installed in 2023

(2022: 43,000+)

2022, and these dips were small: 276 MW versus 287
MW for WA, and 15.7 MW versus 19.3 MW for NT. The
average size of solar systems installed also continued
to trend upwards, reaching 9.3 kW compared to 8.7 kW
in 2022.

In addition, Australian uptake of household batteries
continues to grow. The Clean Energy Regulator


[1 S Vorrath, RenewEconomy, https://reneweconomy.com.au/rooftop-solar-installs-smash-record-as-households-turn-to-bigger-systems-pu](https://reneweconomy.com.au/rooftop-solar-installs-smash-record-as-households-turn-to-bigger-systems-pu)


-----

reported that to the end of September 2023, there
had been more than 17,000 battery installations,
a 14 per cent increase on the 15,000 reported in
the same period in 2022. SunWiz figures for 2023
suggest the total number of storage units installed
was approximately 56,000, up from 43,000 in 2022
and 37,000 in 2021, showing that more and more
Australians are embracing energy independence.

For many years, the rooftop solar sector in Australia has
been essential to the clean energy transition, and never
was that more true than in 2023. While large-scale
generation capacity added was not far behind that of
rooftop solar, there was a significant slowdown in new
financial commitments to renewable energy projects

“The importance
of rooftop solar will only
continue to grow as the
large-scale industry
works to overcome
its investment
slowdown”

in 2023, which may well reverberate in the market for
some time. The importance of rooftop solar will only
continue to grow as the large-scale industry works to
overcome that slowdown. Additionally, with electricity
prices rising year-on-year, more and more consumers
are turning to solar and storage as a way to reduce
their energy consumption from the grid and take
control in reducing their bills.

Industry support

In February 2023, the Clean Energy Council, alongside
a group of other peak and industry bodies, launched
the New Energy Tech Consumer Code (NETCC).
The NETCC superseded the Approved Solar Retailer
(ASR) program to expand the coverage of consumer
protections beyond just solar and storage, aiming
to build on that program’s success and ensure more
Australian homes and businesses can access clean,
affordable, new energy tech from trusted companies.
The program is designed and governed by the NETCC
Council and administered by the Clean Energy Council.
Since the program launched, the Clean Energy
Council has received 412 applications from businesses
wishing to join the program, of which 356 have been
approved. By the end of 2023, 1,572 companies were
participating in the NETCC program.

The Clean Energy Council continued its rigorous
compliance activity in 2023, opening 168 NETCC
compliance cases against Approved Sellers, of which


29 resulted in compliance action. These actions were
vital in maintaining the program’s integrity and ensuring
that Australian consumers purchased new energy
tech products, systems and services from Sellers
committed to good practice standards. To support
Sellers in adapting to the NETCC program, the Clean
Energy Council took a support-to-comply approach
for compliance outcomes in the first six months of the
NETCC’s operation.

The Clean Energy Council also undertook compliance
activities under the ASR program which came to an
end in July 2023. The Clean Energy Council received
117 ASR complaints in 2023 and closed 177 ASR
cases following investigation. Of the closed cases, 39
resulted in compliance action.

At the end of 2023, the number of Clean Energy
Council accredited installers and designers was
9,262, up from 8,988 at the same point in 2022. The
number increased in all states and territories except
WA and NT, and there are now three international
operations on the list, up from two in 2022. The total
number of accredited installer and designers has risen
consistently for eight years.


-----

-----

MacIntyre Wind Farm
Warwick, QLD
Gidhabal Country


-----

INDUSTRY OUTLOOK
###### Large-scale renewable energy


The story of large-scale
renewables in 2023 was a mixed
one, with a strong figure for
capacity added – 2.8 GW – but
a considerable slowdown in
new financial commitments to
generation projects.

Large-scale renewable energy projects completed in
2023 totalled 2.8 GW of capacity across 22 completed
projects. The number of projects is slightly up on 2022
(20), while capacity added is up from 2.3 GW.

Of the 22 projects completed in 2023, 15 were solar
farms and seven were wind farms, with the two largest
being Neoen’s 400 MW Western Downs Green Power
Hub solar farm in Queensland, and ACEN Australia’s
400 MW New England Solar Farm Stage 1, in New
South Wales.

The technology that added the most new large-scale
capacity in 2023 was the large-scale solar sector, with
1.9 GW – up from 860 MW in 2022. That comes from 15
commissioned projects, up from 12 in 2022. This comes
after three years in which the number of large-scale
solar projects had fallen. As mentioned above, the two
largest renewables projects to come online in 2023
were both 400 MW solar farms.

Large-scale solar contributed 15.9 per cent of
Australia’s renewable generation in 2023, up from 14
per cent in 2022, and accounts for 6.3 per cent of all
electricity generation, up from 5 per cent in 2022.

The technology contributing the highest amount of
utility scale generation capacity in Australia remains
the wind sector, with 33.2 per cent of Australia’s
renewable generation and 13.2 per cent of electricity
generation overall, although solar (when including
large-, medium- and rooftop-scale systems), is of
course the overall leader.


GW
#### 2.8

of large-scale capacity
added in 2023

(2022: 2.3 GW)
#### 22

large-scale renewable energy
projects completed in 2023


(2022: 20)
GW
#### 5 /

GWhGWh
#### 11

approximate capacity of
large-scale batteries under
construction at end of 2023

(2022: 1.4 GW /2 GWh)


-----

Seven new wind farms were commissioned in 2023,
slightly down on eight in 2022. The figures for capacity
added were more significantly down, with new wind
farms providing 957 MW in 2023 compared with 1.4
GW in 2022. The largest wind farm commissioned in
2023 was Squadron Energy’s 224 Bango Wind Farm,
which is divided into two segments: Bango Wind Farm
1 at 159 MW, and Bango Wind Farm 2, at 84.8 MW, both
of which commenced operations in 2023. Squadron
also had the second-largest wind farm: the 209 MW
Murra Warra Wind Farm Stage 2 in Victoria.

Dipping investment

There were 56 renewable energy projects under
construction as of December 2023, down from 72 at
the same point in 2022. The combined capacity of
these projects is approximately 7.5 GW, significantly
down on 9.5 GW at the end of 2022.

“2023 was the
strongest ever year
for new financial
commitments in the
large-scale storage
space, at $4.9 billion”

Of those 56 projects, 38 are large-scale solar projects
and 13 are wind farms, both down from 2022,
when there were 48 solar and 21 wind projects in
development. There are currently three combined
wind/solar projects in development (349 MW), and two
biomass projects (61 MW).

But the more alarming statistic is the significant
slowdown in new financial commitments to large-scale
generation projects, which is usually a good signifier of
the how the sector will perform in the years to come.
New financial commitments stood at $1.5 billion in
2023, substantially down on $6.5 billion in 2022.

There were no new announced financial commitments
to utility scale wind projects in 2023[1] (compared to six
in 2022) – a disheartening situation that needs to be
addressed – and seven new financial commitments to
solar projects for a combined 912 MW, down from 10
projects and 1.5 GW in 2022.

Hopefully the Federal Government’s move to attempt to
incentivise new financial commitments to large-scale
renewables projects – in the form of the expanded


Capacity Investment Scheme, announced in late 2023
– will help reverse the current slowdown.

Storage takes centre stage

While it has been something of a chastening year
for utility scale renewables in some respects, one
area that has been storming ahead is the large-scale
storage sector.

Twenty-seven large-scale batteries were under
construction at the end of 2023, up from 19 in 2022,
for a combined capacity of 5 GW / 11 GWh, up from 1.4
/ 2 GWh in 2022. Those batteries will be spread around
the National Electricity Market, too: three of the top five
are to be located in New South Wales, one is in Victoria
and one is in Queensland. The largest battery system
currently under construction as at the end of 2023,
is the 850 MW / 1,680 MWh Waratah Super Battery in
NSW, which is being delivered by the NSW Government
through its EnergyCo authority. Construction on
that project is scheduled to be completed in August
2025. The largest utility scale battery storage project
commissioned in 2023 was the 150 MW / 300 MWh
Riverina Energy Storage System.

The large-scale storage sector has also been blazing
a trail in terms of new financial commitments. Q2
2023 saw the billion-dollar mark for new large-scale
storage investment broken in a quarter for the first
time, and Q4 broke that record just a few months later,
making 2023 the strongest ever year for new financial
commitments in the large-scale storage space, at $4.9
billion including hybrid projects with storage elements
($4.7 billion for storage-only projects). By comparison,
2022 reached $1.9 billion in new financial commitments
to large-scale storage.

After a 2022 in which the story for large-scale storage
was not overly positive, 2023 represented a welcome
boost to the industry. Large scale batteries will be
essential going forward to provide the firming capability
the energy grid will need as more renewables are
added and more fossil fuel generation is retired.

Other generation sources

2024 could be the year Australia gets its first new
hydropower project in over 40 years, as Genex Power’s
250 MW / 2,000 MWh Kidston Pumped Storage Hydro
Project is scheduled to be operational before the
year is out. Hydropower generation for 2023 totalled
approximately 15,307 GWh, down on 16,537 GWh in
2022 – a 7.4 per cent decrease year-on-year. Statista
predicts that the annual growth rate of hydropower in
Australia will be 2.67 per cent from 2024–28, and that
the hydropower market is projected to amount to 14.73
billion kWh in 2024.[2]

Bioenergy provided 3.5 per cent of Australia’s
renewable energy generation in 2023, down from 3.8


1 The Uungula wind farm reached financial close in late 2023, but was not publicly announced until 2024, meaning it was not captured in the data for this report.

[2 Statista, https://www.statista.com/outlook/io/energy/renewable-energy/hydropower/australia](https://www.statista.com/outlook/io/energy/renewable-energy/hydropower/australia)


-----

per cent in 2022. The Transitioning Australias Liquid
Fuel Sector: The Role of Renewable Fuels Report by
Bioenergy Australia and Deloitte, published in 2023,
highlighted a number of decarbonisation opportunities
for Australia, including that replacing just six per cent
of petrol with bioethanol, based on targets, would
be the equivalent of taking 730,000 vehicles off the
road, and that replacing just 10 per cent of jet fuel with
sustainable aviation fuel, based on airline targets, could
be the equivalent of around 220 million less kms flown
annually by a Boeing 747.

As mentioned above, investment in large-scale
battery storage projects was very high in 2023, but
even factoring in that exceptional performance,
overall investment ($6.2 billion) was still down on
2022 ($7.9 billion).


According to the Australian Energy Market Operator
(AEMO), at the end of Q4 2023, “new capacity totalling
36 GW was progressing through the connection
process from application to commissioning. During
Q4 2023, AEMO approved applications for 6.5 GW of
capacity across 28 projects, a notable increase from 1.7
GW across 11 projects in Q4 2022.”[3]

The pipeline is there for Australia to make significant
strides in large-scale renewables, but in a year of
highs and lows for the sector, it is key that the Federal
Government’s expanded Capacity Investment Scheme
is delivered in the right way to bring on the financial
commitments the country needs to accelerate the
deployment of large-scale renewables.


FOCUS ON
Connection reform initiative


The Clean Energy Council (CEC) continues to
collaborate with the Australian Energy Market
Operator (AEMO) and other National Electricity Market
stakeholders to improve the process of connecting new
renewable energy plants and storage to the grid. To
do this, the Connection Reform Initiative (CRI) seeks to
achieve three key objectives:

1. Developing a consistent and predictable
connections process that delivers repeatable
outcomes;

2. Reducing the amount of re-work and improving
efficiency and quality of information to address
information asymmetry; and

3. Creating a collaborative working model between
industry, AEMO and the network service
providers (NSP).

In 2023, the CEC led the effort to develop and
submit a request to the Australian Energy Market
Commission (AEMC) to update the National
Electricity Rules so they provide better certainty for
investors during the registration process for new
generation plants and speed the connection process.
Developing the rule change involved consulting
with AEMO, NSPs, Clean Energy Council members,
investors, and experts from KPMG.

3 Australian Energy Market Operator, Quarterly Energy Dynamics Q4 2023


Since submitting the rule change request in May 2023,
the CEC has remained engaged with stakeholders
through the public rule change process. This has
included providing input during the AEMC’s public
consultations, supporting AEMC staff in creating a
technical working group (TWG) to understand the
problems, and participating in TWG workshops.

The CEC also supported AEMO’s efforts to lead
reviews of the rules for generating system alterations,
for example when adding a battery or additional wind
turbines to a generating system, or when modifications
are required to new plants prior to connection to keep
the grid reliable.

CRI work will continue in 2024, and the CEC will
continue to engage with the investment certainty
rule change, expecting it to become finalised. There
will also be opportunities to engage with AEMO as it
progresses its review of rules for generator system
alterations. Likely this will include creating fact sheets,
reviewing modelling requirements for older wind and
solar farms, and submitting a rule change request to
the AEMC.


-----

POLITICS
###### Federal politics


After a year of significant
renewable energy records but
also a slowdown in new financial
commitments to utility scale
generation, bold policy action
was required to ensure Australia
continues to build on its strong
clean energy foundations.

Several clean energy records were broken in 2023, but
we also saw a continued slowdown in new investment
in large-scale generation, meaning 2023 was a year in
which bold policy action was required.

Clean energy was a real winner in the May Federal
Budget, with new funding commitments aimed at
turbo-charging Australia’s bid to become a clean
energy superpower. Chief among those was a $2
billion commitment in production incentives for the
nascent renewable hydrogen industry, Australia’s first
serious policy mechanism aimed at keeping Australia
competitive in the global renewables race, particularly
in light of key international policies such as the US’s
Inflation Reduction Act, which are already beginning
to hoover up talent and investment. Some of the clean
energy highlights from the May Budget are collected on
the opposite page.

With the 33,000 GWh Renewable Energy Target
achieved in 2020, and the scheme due to sunset in
2030, the Clean Energy Council campaigned strongly
throughout the year for the Federal Government to
commit to a long-term national policy mechanism to
drive increased and sustained investment in large-scale
renewable energy projects and support achievement of
an 82 per cent renewable energy share by 2030.

The announcements in the Federal Budget were an
excellent start, but the key policy enactment in this
space came in November, when the Government
announced an expansion of the Capacity Investment


Scheme, a significant commitment that is intended to
put Australia back on track to achieve the government’s
target of 82 per cent renewables by 2030, replacing
aging coal-fired generation with cheaper renewable
energy and driving down power prices.

“The Federal Government
announced an expansion
of the Capacity Investment
Scheme, a significant
commitment that is intended
to put Australia back on track
to achieve the Government’s
target of 82 per cent
renewables by 2030”

Investment in large-scale scale projects has been
in gradual decline since the highly successful
Renewable Energy Target (a policy that had delivered
substantial investment) was met in 2020. It is now
up to the government, alongside industry, to ensure
its bold new policy lives up to its intent. It is crucial
that the new policy provides increased certainty
to investors and can bring in the enormous private
sector capital that will be required.

For state-specific highlights and trends, go to page 24.


-----

2023–24 Federal Budget clean energy highlights


### $2 bn
 $300 m
 $1 bn $38.2 m
 $14.8 m


commitment in production
incentives for renewable
hydrogen industry

in funding to be matched by the
states for a total of $600 million
to help provide energy-efficiency
upgrades for social housing

for the Clean Energy Finance
Corporation to provide green
finance for residential home
electrification and energy upgrades,
including provision for landlords to
support rental housing.

for a Guarantee of Origin scheme
to certify renewable energy and
green hydrogen production

to establish the Powering Australia
Industry Growth Centre, to help
manufacturing, commercialisation
of local ideas, and to bring First
Nations advisory services


Funding for First Nations Community Engagement with
green hydrogen development on Country

Significant new generation and storage through the
Capacity Investment Scheme

Confirming budget commitments for the Net Zero Authority
and the Small Business Energy Incentive program


-----

POLITICS
###### State targets and commitments

Key initiatives, targets and
updates for Australia’s states
and territories

New South Wales

-  Halve emissions by 2030

-  Net-zero by 2050

-  NSW Electricity Strategy includes $8 billion of new
private investment over the next decade

-  Almost 200 large-scale renewable energy projects
totalling almost 35,400 MW in the NSW planning
system, representing almost $50 billion in investment

-  Passage of NSW Climate Change (Net Zero Future)
Bill in December 2023, enshrining the state’s energy
transition into law

Tasmania

-  150 per cent renewable electricity generation by 2030

-  200 per cent renewable electricity generation by 2040

-  Net zero by 2030

Queensland

-  Queensland Energy and Jobs Plan, released Sept 2022,
targets 70 per cent renewable energy by 2032 and 80 per
cent by 2035. Announced in 2023 it will be enshrined into
law, along with state’s renewable energy targets

-  $145 million Queensland Renewable Energy Zones
initiative

-  Investing $22 million to investigate constructing a 2 GW
pumped hydro energy storage facility at Borumba Dam

-  QLD halfway to achieving 2030 renewable energy target[1]

[1 QLD Government, https://statements.qld.gov.au/statements/98416](https://statements.qld.gov.au/statements/98416)


-----

South Australia

-  100 per cent renewables by 2030

-  Hydrogen Jobs Plan to lead construction of
hydrogen power station, electrolyser and storage
facility by end of 2025

-  Hydrogen Action Plan: $40 million in grants and
loans to three megawatt-scale renewable hydrogen
projects

Victoria

-  50 per cent renewable electricity generation by 2030,
with an intention to increase this to 65 percent

-  Stated ambition to legislate for 95 per cent renewable
electricity generation by 2035

-  At least 6.3 GW of energy storage by 2035

-  By mid-2030s, electric vehicle use to increase by more
than 1,600 per cent

Australian Capital Territory

-  Aim to move completely away from gas usage by 2045

-  Net-zero by 2045

-  Integrated Energy Plan is in development to set out
how ACT will move away from fossil fuels

Western Australia

-  80 per cent emissions reduction target by 2030

-  Approx. $3.8 billion to be invested in green power
infrastructure

-  $22.5 million commitment to help streamline approvals
for green energy proposals

Northern Territory

-  50 per cent renewable electricity generation by 2030

-  Net-zero by 2050


-----

Renewables by state

Renewable energy penetration
by state, 2023

State Total generation Fossil Fuel Total renewable Penetration of renewables as Penetration of renewables as
(GWh) Generation (GWh) generation (GWh) proportion of generation proportion of consumption

NSW 70,418 45,433 24,985 35.5% 32.5%

QLD 66,763 48,411 18,352 27.5% 28.8%

SA 13,761 3,186 10,575 76.8% 72.5%

TAS 10,652 63 10,588 99.4% 93.4%

VIC 53,698 32,408 21,290 39.6% 43.6%

WA 20,979 13,623 7,356 35.1% 35.1%


National
(excl. NT and minor grids)


236,271 143,124 93,147 39.4% 39.4%


Renewable energy penetration by state
as proportion of generation

100

80

60

40

20

0

30.7% 35.5% 22.6% 27.5% 71.5% 76.8% 99.1% 99.4% 36.8% 39.6% 35.2% 35.1% 35.9% 39.4%

NSW QLD SA TAS VIC WA National*

2022 2023 -  excl. NT and minor grids


-----

Rolling 12-month average of installed capacity (MW)
of generation projects by state

700

600

500

400

300

200

100

0

2017 2018 2019 2020 2021 2022 2023


NSW NT SA QLD VIC TAS WA

Cumulative investment in
generation projects by state ($M)

50,000

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5000

0

2017 2018 2019 2020 2021 2022 2023

NSW NT SA QLD VIC TAS WA


-----

Jabiru Hybrid Renewable Power Station
Jabiru, NT
Mirarr Country


-----

###### Employment


Jobs and Skills Australia
completed a landmark report
in 2023, laying foundations to
address structural workforce
challenges experienced by the
clean energy industry.

The clean energy industry experienced ongoing
workforce challenges in 2023. Global competition
for investment and workers continues to intensify
due to state industrial policy, producing high costs
across the supply chain. Tight conditions due to
low unemployment and high participation endure
throughout the broader workforce. Key occupations
and skills are in persistent shortage across Australia,
including the construction workforce, electricians,
engineers, and major groups including Technician and
Trades Workers and Professionals.

Despite existing skill shortages challenges, the industry
has a growing project pipeline that will exacerbate
these pressures if unaddressed. The Australian Energy
Market Operator (AEMO)’s 2024 draft Integrated
System Plan (ISP) expanded uptake of utility-scale
wind, solar and batteries to 2030, reflecting increased
state and federal ambition to rapidly decarbonise
electricity generation. When compared with the
2022 ISP, this requires an additional 24,000 direct
clean energy jobs by 2030, an 81 per cent increase
on previous projections. Queensland introduced its
Energy and Jobs Plan to Parliament, which will legislate
renewable energy targets and defines a pathway to
deliver 22 GW of new wind and solar projects by 2035.
According to the government, this will support 64,000
direct and indirect jobs in construction and operations
and maintenance, and 36,000 jobs in the supply chain.
The scale and pace of workforce change required to
2030 is urgent and requires coordinated reforms.

This message, and the call for a planned response led
by the federal government, has been a core focus of
Clean Energy Council (CEC) advocacy for some time. In


response, the commonwealth commissioned the newly
established Jobs and Skills Australia to undertake a
capacity study of the current and future state of the
clean energy workforce. The result was The Clean
Energy Generation report, a landmark analysis of
the problems facing a growing industry. The report
defined the workforce for the first time and identified
emerging skill gaps through whole-of-economy
workforce projections. It also examined the barriers to
participation from underrepresented cohorts including
women, First Nations people and skilled migrants. The
report found that while there are sufficient workers
overall, there is a significant mismatch between
projected demand for workers and available supply of
vocationally trained occupations.

“Despite existing skill
shortages challenges,
the clean energy
industry has a growing
project pipeline
that will exacerbate
these pressures if
unaddressed”

The report made 50 recommendations that echoed
many of the Clean Energy Council’s recommendations
from the Skilling the Energy Transition report. They
call for comprehensive reforms across multiple sectors
to attract, train and retain workers. These included
higher education, vocational education and training,
skilled migration, industry, and government. It also
addressed several key reforms across these sectors
that were initiated in 2023, including a new National


-----

Skills Agreement, a review of higher education
leading towards a new Universities Accord, and the
Australian Government’s Migration Strategy. The
recommendations will also inform the work of new
bodies including the Net Zero Economy Agency,
which was established to support regional fossilfuel dependent communities in a just transition, and
Powering Skills Organisation, the new Jobs and Skills
Council for the energy sector.

In a context of tight workforce conditions, promoting
diversity, equity and inclusion is essential to resolving
skill shortages by enhancing attraction and retention of
workers to the industry. This is an enduring challenge
in clean energy, acknowledged by governments and
industry, with many key occupations heavily male
skewed. The Federal Government and the CEC have
committed to Equal by 30, which aspires to deliver
equal pay, equal leadership, and equal opportunities
for women in the clean energy sector by 2030. The
CEC also expanded its Women in Renewables (WiR)
Program to include a Mentoring Program that facilitates
connections and support for women in the industry as
they progress their careers. The CEC’s WiR program
also includes:

-  Women in Renewables Scholarships, including
the Chloe Munro Scholarship for Transformational
Leadership and the Australian Institute of
Company Directors Scholarship. These enable
professional development of women in the clean
energy industry.

-  The Panel Pledge, which commits signatories to
only participate in forums and panels that embrace
gender diversity.

-  A Speakers Guide, which showcases the breadth,
expertise and knowledge offered by women in the
sector to event organisers.

-  The Career Launcher Program, which enables
member companies to sponsor a student or recent
graduate who identifies as a woman to attend a
major conference.

To address the visibility gap for young people seeking
a career in clean energy, the Clean Energy Council
and the Energy Efficiency Council jointly delivered
the inaugural Careers for Net Zero Fair. The Fair
launched the Careers for Net Zero campaign, which is
designed to help fill Australia’s skills gap and encourage
job seekers to pursue a clean economy career. It
showcases the many occupations needed to deliver
the clean energy transition in Australia and information
on pathways into the industry.

Diversity and inclusion in renewables

The Clean Energy Council 2021 report Empowering
Everyone concluded that the clean energy industry had


significant opportunity – and obligation – to improve the
representation of many traditionally underrepresented
groups: women (particularly in leadership roles and the
trades), Indigenous Australians, people with disabilities,
and more.

The report, The Clean Generation: Workforce needs
for a net zero economy, published in late 2023 by Jobs
and Skills Australia, goes into detail on what the clean
energy sector needs to work on.

Representation of women

The JAS concludes that little has been done to so far
to counter the fact that the clean energy workforce is
predominantly male, “especially amongst the critical
occupations for clean energy supply and demand”. JSA
analysis has shown that “the majority of occupations
in shortage have a substantially gendered workforce,
most of which are male dominated”.

First Nations

According to the JSA report, First Nations peoples
are represented more strongly (3.4 per cent) in the
traditional mining sector than they are in clean energy,
where representation matches the labour force
average of around 1.9 per cent. The JSA recommends
expanding Indigenous Range and Caring for Country
programs across the country; revising employment,
training and educational targets for clean energy
developments on First Nations land; and more.

People with disability

There is not enough understanding in key institutions of
accessible careers options in clean energy for people
with disability. “The Government [should] collaborate
with clean energy employers and disability support
organisations to identify suitable career options for
people with disability” says the JSA.

Migrants

The qualifications of migrant works tend to be
undervalued, concludes the JSA, and “overseasborn engineers are significantly more likely to be
unemployed or underemployed”. JSA analysis shows a
high proportion of non-citizens with electrical engineer
degrees are working in lower skilled jobs. The Diversity
Council Australia also revealed that institutionalised
racism remains a factor, with nearly nine in 10
respondents to its Racism at Work survey saw racism
as a problem in their workplace.

The above statements and figures present a massive
challenge for the clean energy industry, but also a
massive opportunity. The industry needs so many
more workers, in so many different areas, to build and
maintain the energy transition, that there should and
can be a place for everybody.


-----

CASE STUDY
Powering and empowering:
clean energy is for everyone


The transition to clean energy will be the most
significant economic transformation since the
industrial revolution. The mechanics of that
transformation – the projects we need to build, the grid
we need to re-shape, the policies we need to reform
– tend to be the focus. But while those things are
essential, so is ensuring that the clean energy industry
is diverse and inclusive.

Workplaces should reflect and respect the ideals
and perspectives of society and the employees who
constitute them, primarily because that is simply
the right thing to do, but also because research
consistently shows that diverse and inclusive
organisations are more likely to be effective,
innovative and provide excellent customer service.

The Clean Energy Council spoke to Amanda White,
then-Global Head of Diversity and Inclusion at RES
Group (RES), to talk about diversity in the clean energy
industry, the barriers we need to remove, and the
pathways into the industry we need to build.


“According to a recent report by DCA (Diversity Council
Australia), there are three million people looking for
work in Australia, most of whom are from marginalised
groups,” said White. “Too many candidates are being
overlooked due to systemic barriers and processes that
are open to bias and discrimination.

“Employment policies and processes need to be
designed with inclusion in mind, demonstrating to
people that your organisation is welcoming and safe.
Things like gender-neutral parental leave, LGBTQ+
allyship training, domestic family violence support,
cultural holiday swap and gender affirmation policies
help to signal safety as well as inclusion.

“To get more people into clean energy, we need
to amplify the range of roles within renewables,
partner with organisations to reach diverse talent,
and demonstrate safety and inclusion throughout our
entire talent lifecycle processes.”

[View this case study in full at the Clean Energy Council](https://www.cleanenergycouncil.org.au/news/res-clean-energy-is-for-everyone)
[website.](https://www.cleanenergycouncil.org.au/news/res-clean-energy-is-for-everyone)


-----

Chloe Monroe Scholarship for Transformational
Leadership 2023 recipients


In recognition of the enormous legacy of the late
Chloe Munro AO, the Clean Energy Council and a
coalition of organisations established the Chloe
Munro Scholarship for Transformational Leadership.
The scholarship honours Chloe’s legacy and supports
the next wave of women leaders. Building on the
success of the inaugural 2021 scholarship, there
were 11 recipients in 2023, each of whom is doing
fantastic work in our industry.


The scholarship is open to emerging and mid-level
women leaders in the fields of renewable energy,
energy management and carbon abatement.
Successful applicants will receive a fully funded
scholarship to undertake one of two courses offered by
education provider, Women & Leadership Australia.


Jessica Holt
Generation Technician,
Hydro Tasmania

Sera Tarpis
Engineer, Australia Energy
Market Operator


Catherine
Featherstonhaugh
Head of Commercial Asset
Management, RES

Manuela Londono Ferro
Business Development Lead,
Raygen

Dr Madeline Taylor
Senior Lecturer,
Macquarie University


Maiken Hansen
Commercial Manager,
Green Energy Partners

Alice Moore
Principal Policy Officer, DEECA

Sharon Tissai-Krishna
Associate Technical Director,
Ampyr Energy


Gemma Harrison
Hydrogen Business Development
Manager, Ampol Australia

Lara Panjkov
Growth and Market Development
Senior Manager, Fluence

Claire Whiteway
National Development Lead E&P,
Aurecon


-----

Tyronne Garstone talking with
Kimberley locals
Broome, WA
Yawuru Country
(Pollination)


CASE STUDY
Energy sharing: clean energy
on Country


Community engagement and collaboration is essential to
a just energy transition, particularly with the Traditional
Owners of the lands on which many renewable
infrastructure projects will be built. The Clean Energy
Council spoke to the leaders of the Aboriginal Clean
Energy Partnership, which is working with Traditional
Owners as equal shareholders in its East Kimberley Clean
Energy Project in Western Australia.

The project is being built around a partnership in which
the Traditional Owners of the land, represented by MG
Corporation and Balanggarra Aboriginal Corporation,
will join the Kimberley Land Council and climate
change investment and advisory firm Pollination as
equal shareholders.

“We know that in Australia, around 48 per cent of the
renewables we are going to need to get to net zero
will have to be located on land that is subject to some
kind of native title or traditional ownership. It’s not
just a case of us wanting this model to work; we say
it must work. This is by far the most inclusive, most
commercially astute and least risky way of building the
future infrastructure that is going to be needed,” said
Rob Grant, Head of Projects at Pollination.


The project has moved through the scoping phase
and is currently at the stage of project feasibility
and design, alongside approvals applications. When
completed, it will consist of a 2000-hectare solar farm
developed on MG Corporation freehold land near
Kununurra. The solar farm will produce approximately
1 GW of energy, which will be combined with fresh
water from Lake Kununurra and hydro energy from
the Ord Hydro Power Plant at Lake Argyle to produce
green hydrogen.

Building renewable energy projects on First Nations
land need not represent a clash of values. “We’ve seen
the impacts of what the dirty energy revolution has
done not only to our own country but more broadly to
the world,” said Tyronne Garstone, CEO of Kimberley
Land Council. “The clean energy movement is aligned
to Traditional Owners’ values and core responsibility to
look after Country.”

To learn more, visit the Aboriginal Clean Energy
Partnership website, or find the full case study at the
[Clean Energy Council website.](https://www.cleanenergycouncil.org.au/news/energy-sharing-clean-energy-on-country)


-----

Western Downs Green Power Hub
Western Downs, QLD
Barunggam Country


-----

###### Renewables for business


Corporate Renewable Power
Purchase Agreements (PPAs)
had another record-breaking
year in 2023. For the second
year running, deal volume hit
a new record – just over 1,700
MW, up from around 1,500 MW
last year.

Capacity contracted (MW)

2000

1800

1600

1400

1200

1000

800

600

400

200


Many participants described the Australian corporate
renewables PPA market in 2023 as a ‘sellers’ market’
with an excess of demand for PPAs relative to
supply. Buyer demand, underpinned by net zero and
sustainability targets, remains high while various
factors such as transmission constraints slowed the
development of new renewable energy projects.
There were various manifestations of a sellers’
market, including reports of developers conducting
quasi-auctions among buyers instead of the more
usual buyer tenders.


2017 2018 2019 2020 2021 2022 2023

Content and data supplied by Business Renewables Centre Australia


-----

In a more challenging market, it was notable that many
of the deals were signed by experienced, high-profile
corporates that had already signed PPAs:

-  BHP: 6th PPA (203 MW, MacIntyre Wind Farm,
Western Downs Green Power Hub & Kaban Wind
Farm & storage, Qld)

-  Ikea: 1st PPA (195 MW, Golden Plains Wind Farm,
Vic), 2nd PPA (13 MW, Peak Hill & Trundle Solar
Farms, NSW) and 3rd PPA (152 MW, Tilbuster Solar
Farm, NSW).

-  Telstra: 5th PPA (60 MW, Munna Creek Solar Farm,
Qld) and 6th PPA (70 MW, Bundaberg Solar Farm,
Qld)

-  Woolworths: 3[rd] PPA (205 MW, Bango Wind Farm
and Darlington Point Solar Farm, NSW).

-  NBN: 2[nd] (29 MW, Macarthur Wind Farm, Vic) and
3[rd] PPA (27 MW, Munna Creek Solar Farm, QLD).

-  Lion Brewery: 2[nd] PPA (71 MW, Woolooga Solar
Farm, QLD).

Fortescue Metals signed the first ‘hydrogen PPA’ in
Australia (a trend also observed in Europe), a 338
MW PPA with Bulli Creek solar farm (and battery).
Consequently, there was a notable shift towards
larger deals (>100 MW) and fewer small deals (<20
MW) in 2023.

As with past years, public sector organisations were
also prominent, notably regional local government
buyer groups. There were also some household names
who were first-time PPA buyers: Arnott’s, Asahi, Boral
and Optus.

Ups and downs and continuity

For the past four years, Business Renewables Centre
Australia (BRC-A) has conducted an annual survey of
buyers, advisers and developers – which for the most
part has found continuity on the drivers for PPA buyers.
The great electricity market crisis of 2022 had only a
limited impact on Corporate PPAs – if anything, most
buyers, advisers and developers reported the market
volatility in 2022 had a positive impact on demand
for PPAs, and most consider it didn’t ultimately have a
major impact.

The PPA market continues to be driven by buyers
with sustainability targets: BRC-A’s annual survey has
year after year found around two thirds of buyers
nominate sustainability targets or policies as the major
catalyst for pursuing a PPA ahead of price or financial
considerations. The growth in organisations with
net zero targets continues to underpin demand for
Corporate PPA.

Financial risk, price and developers are the top-line
considerations for buyers assessing PPAs – but
community and environmental issues are rated higher
than developers think: once buyers go through the


process and are evaluating PPA offers, the top three
issues have consistently been financial risk, price and
developer reputation (in that order), but buyers have
also consistently ranked the second tier of issues
(community support, benefits, environment and
biodiversity) higher than developers expect.

PPAs are still hard to do – but may be getting a little
easier. Fewer buyers have reported it took longer than
18 months to negotiate PPAs in the past couple of years
and more buyers rank the difficulty as a ‘3’ or ‘4’ than a
‘5’. Buyers report the key barriers are securing internal
support and the challenge of finding the right PPA
model to fit their organisation – but it appears they are
a bit quicker and easier than earlier years.

In 2022, there were virtually no PPAs with new projects.
This year, deal volumes were evenly split between PPAs
with new projects (28 per cent), ‘committed’ projects
that had secured finance (33 per cent) and operational
projects (39 per cent). The year was headlined by a
new PPA by Fortesque Metals. NBN, Telstra and offgrid miner Bellevue Gold also negotiated new PPAs.

“Business Renewables
Centre Australia’s annual
survey has year after
year found around two
thirds of buyers nominate
sustainability targets
or policies as the major
catalyst for pursuing a PPA
ahead of price or financial
considerations”

In general, there has been a lower volume of PPAs
with new projects in recent years, which reflects the
slowdown in supply and increased risks associated with
contracting with new projects for Corporate PPA buyers
and the now-established retailer market for PPAs with
operating projects.

Content and data supplied by Business Renewables Centre Australia


-----

What is the primary driver for your interest
in Corporate Renewable PPAs?

Corporate social
responsibility goals


Reputation

Greenhouse emissions
or Renewable Energy Targets


Lower electricity prices

Electricity price certainty

|Col1|Col2|
|---|---|


0% 5% 10% 15% 20% 25% 30% 35% 40%


2021 2022 2023

Key factors for PPA buyers evaluating offers,
average rating, 2021–23


5.0

4.0


2023


3.0

2.0


1.0

0.0


2022

2021


Content and data supplied by Business Renewables Centre Australia


-----

What is the future role of

corporate PPAs?

The Corporate PPA market continues to evolve and
reflect the wider dynamics of the energy transition.
In the first phase (2016–20), Corporate PPAs were
primarily developed by large corporates to leverage
greater financial value and environmental impact from
their renewable energy purchases through wholesale
PPAs negotiated directly with new projects. In the
second phase (2020–23), Corporate PPAs (partly) filled
the void left by the decline in PPAs from major retailers
after the achievement of the 2020 RET target, and the
market expanded to a wider diversity of buyers via
de-risked PPAs with operational projects brokered by
retailers.

Corporate PPAs may now be entering a third-phase as
the post-RET policy architecture is established, through
the Renewable Energy Guarantee of Origin scheme,
Capacity Investment Scheme (CIS) and Renewable
Energy Zones. In late 2023, the Federal Government
announced an expansion of the Capacity Investment
Scheme, which has major implications for Corporate
PPAs. From April/May 2024, competitive tenders will
be held every six months until 2027 to contract 23
GW of renewable energy and 9 GW of dispatchable
resources (e.g. battery storage). Although the scheme
design is not yet established, it appears the CIS will
be a variation on the NSW Long-Term Energy Supply
Agreement (LTESA) auction model.

What are the implications for Corporate PPAs? Some
participants and analysts have for some time projected
that Corporate PPAs are a passing trend which will
fade out as traditional parties re-enter the market
for renewable energy. Certainly, one scenario is that
Corporate PPAs will be crowded out as projects focus
on bidding for contracts under the CIS. This is possible
and may well be part of how the market changes, but
it is unlikely that Corporate PPAs will fade out in our
view. Demand for Corporate PPAs is underpinned by
emissions reduction, ESG and reputational drivers that
will continue.

However, the CIS in particular will certainly impact
on the dynamics of the Corporate PPA market.
The experiences of NSW and Queensland provide
some indications on the potential implications. In
Queensland, state-owned utilities with mandates to
sign PPAs have emerged as the dominant entities
for contracting with new projects. Most (but not all)
corporate PPAs have been retail PPAs signed with
solar and wind farms that are in commissioning or
operational after one of the state-owned utilities have
signed a PPA to underwrite construction. A similar
dynamic could emerge as the CIS scales up.

Under the NSW LTESA model, tender criteria rate bids
with alternative contracts such as Corporate PPAs
higher because the aim is not to displace conventional
market contracting. One of the weaknesses of earlier
government auction processes was they effectively


removed projects from the contracting market with
impacts on liquidity and generator behaviour.

Brad Hopkins of Australian Energy Market Operator
(AEMO) Services noted after the announcement of the
second round of LTESAs (November 2023): “Previously,
people needed a 15-year PPA with a credit worthy
utility in order to get a project built. They’re showing
up to our tenders, and they’re saying, we need enough
financial support from the LTESAs to pay our debt.
But they say we’re happy and we’ve got a five-year
contract with a medium-sized company or a large
corporate or a new entrant retailer. And our equity
investors are happy to take the risk that we get another
contract in another five years.”[1]

It may be that the role and composition of Corporate
PPAs changes more than the volume. Corporate
PPAs may be part of bids through the CIS auctions
for new projects but remain the minority as in recent
years because only larger parties would be attractive
to enhance bids for the CIS – and the role of PPAs
increasingly centres on revenue certainty through
commissioning and operational phases.

The shift towards more PPAs signed with
commissioned and operating PPAs could be
consolidated as the big retailers re-enter the market
and negotiate deals after securing a contract through
the CIS. The scale of investment required to achieve
the government’s 82 per cent renewables target – 6
GW per annum by AEMO’s estimate – adds confidence
that offtake demand from corporate PPA buyers will
continue to have a role but it will evolve as the CIS gets
into gear.

This summary is drawn from the annual State of the
Market report produced by the Business Renewables
Centre – Australia on Corporate PPAs. BRC-A is a
national not-for-profit initiative established to facilitate
the growth of renewable energy procurement by
Australian companies. The initiative was originally
established with seed funding from the NSW
Government, Victorian Government, Queensland
Government and ARENA. For more information see
[https://businessrenewables.org.au.](https://businessrenewables.org.au)


[1 G.Parkinson, RenewEconomy, https://reneweconomy.com.au/bowen-capacity-plan-means-a-power-shift-from-big-utilities-but-will-there-be-enough-wind/](https://reneweconomy.com.au/bowen-capacity-plan-means-a-power-shift-from-big-utilities-but-will-there-be-enough-wind/)


-----

How high are the transaction costs
for Corporate PPAs?

70%

60%

50%

40%

30%

20%

10%

0%

1 2 3 4

Buyer Developer Service Provider

Corporate PPAs, process duration

40%

35%

30%

25%

20%

15%

10%

5%


0%


<6 months 6-12 months 12-18 months 18-24 months 2+ years

2020 2021 2022 2023


Content and data supplied by Business Renewables Centre Australia


-----

###### Electricity prices


The extreme ups and downs of
2022 have mostly levelled out,
and while energy prices yearon-year are still up, a downward
trend may be on the way.

Energy wholesale prices continued to rise in early 2023
as a result of gas and coal input market conditions
caused by Russia’s war in Ukraine, but the latter half
of 2023 saw wholesale prices stabilise and begin to
fall, supported in part by an ongoing increase in the
availability of new renewable generation capacity.
Given that changes in wholesale markets prices flow
through gradually into retail prices, we should see lower
retail prices in 2024.

However, many of the vulnerabilities observed in 2022
remain (primarily: delays in new renewable investment
and fossil fuel price shocks), and according to the
Australan Energy Regulator, the general rise in prices
since the war began is now a backdrop to the broader
economic cost-of-living crisis. “Heightened wholesale
electricity prices exerted major upward pressure
on retail prices for 2023–24. This has occurred in
economic conditions where consumers are not
well-placed to absorb bill increases due to broader
increases in costs of living.”[1]

However, in the final quarter of 2023, the Australian
Energy Market Operator (AEMO) reported that
wholesale spot electricity prices across the NEM
averaged $48 per megawatt-hour in Q4 2023, a 48
per cent drop from the same period in 2022, and that
all states enjoyed wholesale price reductions as a
result. These drops were likely due in part to thermal
coal generators not spiking prices as much as they
were, and increased penetration of renewables in the
grid overall.

1 Australian Energy Regulator, State of the Energy Market 2023

2 Australian Energy Market Operator, Quarterly Energy Dynamics Q3 and Q4 reports


There were significant differences in those price
reductions, however, with prices in Queensland ($68/
MWh) more than double those of Victoria ($26/
MWh). AEMO puts this disparity down to differing
levels of operational demand and ongoing network
congestion in northward flows on the Victoria-New
South Wales Interconnector.[2]

AEMO wrote in its final quarterly report of 2023 that
“record generation from grid-scale renewables and
rooftop solar is triggering wholesale energy prices and
greenhouse gas emissions to fall”, a noteworthy point
that reinforces just how important renewables are, from
a climate and an economic perspective.

“Consumers are not wellplaced to absorb bill increases
due to broader increases in
costs of living”

Meanwhile, all regions in the NEM saw an increase in
negative price occurrences in 2023,[3] reflecting the
increased level of renewables supply. If Australia can bring
on increased levels of storage and sure up the reliability
of the grid, the benefits of low-cost clean energy could
be shared with all consumers, and hopefully retail energy
prices would reduce even further.

Consumer price pressures

While consumer electricity prices have not experienced
the extreme highs seen in previous years, and are
hopefully approaching a downward trajectory, they
are nevertheless on the rise year-on-year. The
Australian Bureau of Statistics (ABS) reports that
electricity prices rose 10.7 per cent in the 12 months


[3 G Parkinson, RenewEconomy, https://reneweconomy.com.au/negative-pricing-events-hit-record-levels-and-are-worse-in-coal-fired-grids/](https://reneweconomy.com.au/negative-pricing-events-hit-record-levels-and-are-worse-in-coal-fired-grids/)


-----

to November 2023. The Federal Governments Energy
Bill Relief Fund became active in July 2023, offering
bill-relief payments to eligible households and small
businesses; and in April, the Government extended
its wholesale gas price cap to at least mid-2025 in an
additional effort to keep energy bills from escalating.[4]
In November 2023, ABS reported that electricity prices
had risen 8.8 per cent since June 2023. Excluding
Energy Bill Relief Fund rebates, prices would have
increased by 19 per cent over this period.

Fluctuations and volatility

According to Rystad Energy in October 2023,
“Australia’s NEM power market is now the most volatile
in the world”.[5] The key metric Rystad used to reach
this conclusion was the average difference between
the highest and lowest price during a given hour, with
domestic price spreads for Queensland and South
Australia seeing the widest spreads of all markets
Rystad investigated. Rystad concludes that among the
measures for handling these fluctuations, increased
storage capacity is required. Indeed, that seems to be
something that is on the way. See page 55 for more on
a record-breaking year for battery storage.

The Australian Energy Market Commission (AEMC)
will be changing its reporting methods for residential
electricity price trends, with a 10-year forecast to
be published in late 2024. The AEMC believes this
approach will provide greater insight into the drivers of
consumer electricity costs over a longer period of time.

Lal Lal Wind Farm
Yendon, VIC
Wadawurrung Country
(Clean Energy Council)

[4 P Hannam, The Guardian, https://www.theguardian.com/australia-news/2023/apr/26/labor-extends-gas-price-cap-to-2025-to-protect-power-bills](https://www.theguardian.com/australia-news/2023/apr/26/labor-extends-gas-price-cap-to-2025-to-protect-power-bills)

[5 Rystad Energy, https://www.rystadenergy.com/news/australia-electricity-market-most-volatile-in-the-wor](https://www.rystadenergy.com/news/australia-electricity-market-most-volatile-in-the-wor)


-----

###### Transmission


With lots of new transmission
needed to support the clean
energy transition, and plenty
of ageing transmission
infrastructure to be upgraded
or replaced, there was
plenty happening in 2023 in
terms of regulation and new
technological solutions.

In late December 2023, the Australian Energy Market
Operator (AEMO) published the 2024 Draft Integrated
System Plan (ISP). Broadly, transmission buildout
remains the same as the 2022 ISP, with no major
changes to the timing of projects. Both AEMO’s Step
Change and Progressive Change scenarios require
5,000 km of transmission in the next decade, and
10,000 by 2050.

The only change is the inclusion of two new actionable
transmission projects, Gladstone grid reinforcement
and Queensland Supergrid South. Both of these

|2030 19 GW|2050 57 GW|
|---|---|


|NOW 19 GW|2030 57 GW|
|---|---|


Grid-scale Distributed Electricity Gas-powered
Storage capacity wind and solar solar PV consumption generation Coal generation

**to increase** **to increase** **to increase** from the grid **to increase** **to be**
**significantly** **7-fold** **4-fold** **to nearly** **withdrawn**

Batteries, virtual power Rooftop solar, other **double** While current mid-merit plants will all retire within Capacity to be
plants, pumped hydro distributed solar that period retired by:

**NOW** **2030** **2050** **NOW** **2030** **2050** **NOW** **2030** **2050** **NOW** **2030** **2050** **NOW** **2050** **2030** **2038**

3 GW 19 GW 57 GW 19 GW 57 GW 126 GW 21 GW 36 GW 86 GW 174 TWh 202 TWh 313 TWh 11 GW 16 GW 46% 100%


1 Australian Energy Market Operator, Draft Integrated System Plan 2024


projects aim to increase the hosting capacity of the
transmission network as significant new renewable
generation has been announced in Queensland.1

The energy transition requires significant investment
to deliver on a seven-fold increase in utility scale
renewable generation, supported by a 19-fold increase
in storage capacity. The majority of generation
and dispatchable capacity will be coordinated in
renewable energy zones (REZs).[2] The transmission
projects underway will support the expected growth
in generation and increase in electricity consumption,
particularly from emerging loads such as data centres
and electrolysers.

Renewable energy zones

In New South Wales, the Illawarra REZ was declared
on 27 February 2023. It has 1 GW intended network
capacity with the potential to support a future
Commonwealth Offshore Wind Zone. The Hunter
Transmission Project (HTP) will unlock generation from
the Central West Orana and New England REZs to
deliver an additional 5 GW of network capacity, which
could be increase to as much as 8 GW.[3]

South West REZ has progressed to the access
scheme declaration, which is a measure to control the

|NOW 11 GW|Col2|2050 16 GW|
|---|---|---|
||||

|2030 2038 46% 100%|Col2|Col3|
|---|---|---|
|2030 46%||2038 100%|
||||


[2 Australian Energy Market Operator, https://aemo.com.au/-/media/files/stakeholder_consultation/consultations/nem-consultations/2023/draft-2024-isp-](https://aemo.com.au/-/media/files/stakeholder_consultation/consultations/nem-consultations/2023/draft-2024-isp-consultation/draft-2024-isp---overview.pdf?la=en)
[consultation/draft-2024-isp---overview.pdf?la=en](https://aemo.com.au/-/media/files/stakeholder_consultation/consultations/nem-consultations/2023/draft-2024-isp-consultation/draft-2024-isp---overview.pdf?la=en)

[3 EnergyCo, https://www.energyco.nsw.gov.au/sites/default/files/2023-11/htp-project-overview-public-exhibition-nov-2023.pdf](https://www.energyco.nsw.gov.au/sites/default/files/2023-11/htp-project-overview-public-exhibition-nov-2023.pdf)


-----

connection of projects to the Project EnergyConnect transmission line, linking the largest National Electricity
transmission project. EnergyCo has suggested an Market (NEM) regions, starting from northwest
access fee through which it guarantees a certain level Melbourne and ending in Wagga Wagga via Bulgana,
of curtailment and several other positive benefits for Kerang and Dinawan.[6]
host communities, energy consumers and investors.
Importantly, following industry consultation, EnergyCo South Australia continues to be a national leader in
has increased the curtailment level from 0.54 per cent integrating renewable energy, frequently experiencing
to 3.865 and the initial aggregate maximum capacity periods of 100 per cent instantaneous renewable
cap increased from 2,500 MW transfer capacity energy generation. A large transmission project
to 3,980 MW.[4] The strong relationship between concluded in February 2023 was the Eyre Peninsula
government and industry will ensure the design of the Link. Industry growth in the area has led ElectraNet to
REZ harnesses renewable energy resources and leads investigate further increasing the capacity. Additional
to efficient investment in renewable energy projects. work has been carried out to identify potential network

investments including the South East SA REZ to

In Queensland, the Department of Energy and increase transfer capacity between the southeast
Public Works has released the Queensland region and Adelaide and the Mid North SA REZ that
Renewable Energy Zone Roadmap,[5] which outlines would increase system reliability and meet increasing
the coordination of renewable energy projects electricity demand from industry (for example, mining
and infrastructure development to deliver 22 GW and hydrogen production).
of renewable energy by 2035. The Government
has allocated $6 million to better understand System security
the readiness for REZ development, through the
REZ Readiness Assessment scheme. Each of the As the energy system transitions to higher levels of
identified REZs draws on the existing strength of the inverter-based resources (IBR) – wind, solar PV and
region and expected growth. The SuperGrid Blueprint battery energy storage – discussions around system
will support the delivery of significant renewable security have dominated. The provision of inertia
energy projects, including pumped hydro generation. through the spinning mass of turbines from thermal

generators will be replaced by IBR.

In Victoria, the VNI West project has attracted
significant attention from various groups, including Network system providers (NSPs), together with
some controversy over the route options. Transgrid and AEMO, have investigated options to support the grid
AEMO Victoria Planning revised community feedback as record levels of variable renewable energy (VRE) are
and moved the location of the Murray River crossing added across the NEM. New technologies including
50km to the north to avoid wetlands and endangered the emergence of grid-forming inverters (inverters that
bird species. The project covers 800 km of create their own voltage waveform and help stabilise

4 NSW Government, https://www.energy.nsw.gov.au/sites/default/files/2023-03/NSW_South_West_Access_Scheme_Design-Position_Paper_2023.pdf

5 QLD Government, https://www.epw.qld.gov.au/__data/assets/pdf_file/0019/36037/draft-2023-queensland-rez-roadmap.pdf

6 Transgrid, https://www.transgrid.com.au/media/1vbfkt2d/vni_west_draft_route_report-29-january-2024.pdf


-----

the grid in case of a fault) and synchronous condensers On the regulatory front, the Australian Energy Market
are offering new options to manage inertia and stability Commission has released a draft determination to
in the grid as more IBR connects. The System Strength address the challenges faced by NSPs in raising finance
Framework sets out the nodes across the NEM where to proceed with actionable ISP transmission projects.[7]
the provision of system strength is required. This is The rule change initiated by the Honourable Chris Bowen
determined through a methodology by the System MP, Commonwealth Minister for Climate Change and
Strength Service Provider (SSSP) represented by the Energy and Energy Networks Australia, acknowledges
local NSPs or jurisdictional planning body. The SSSP that transmission is a critical enabler for the transition
must meet the new requirements by 2 December 2025. to net zero. Delayed investment in transmission
Strong industry collaboration has led to significant infrastructure would likely come at a cost to consumers,
improvements to the framework, including how prices ultimately delaying renewable energy generation. The
are calculated. These changes have material benefits rule change allows NSPs and the funding body to choose
to the industry since renewable energy developers pay the mechanism best-suited to sharing benefits with
less to connect. consumers, sets out minimum information requirements

the NSP needs to provide to the Australian Energy

Another development has been the elevation of Regulator and clarifies how concessional finance benefits
non-network solutions as a viable means of avoiding are treated in the economic assessment of project
network augmentation. Non-network solutions options during the development of the ISP and Regulatory
are services provided by asset owners rather than Investment Tests.
owned by NSPs that can help accelerate project
timeframes, unlock network capacity and lead to Related to system strength, two rule changes, the
improved consumer benefits. Largely, these projects system strength quantity[8] and Powerlink reset
are energy storage solutions. Several projects have system strength unit prices,[9] have been fast tracked
been proposed or progressed through the regulatory to incorporate clarification and corrections to the
process to support NSPs including Hydrostor, the framework. This underscored extensive engagement
Broken Hill compressed air energy storage facility, and with industry and recognition by market bodies of the
various battery energy storage projects in New South urgency to rectify initial design choices.
Wales procured to offer dynamic reactive support. The
suite of options explored to unlock network capacity
has sent strong signals as to the viability of multiple
technologies deployed to support the grid.

7 Australian Energy Market Commission, https://www.aemc.gov.au/sites/default/files/2023-12/Draft%20determination.pdf

8 Australian Energy Market Commission, https://www.aemc.gov.au/rule-changes/calculation-system-strength-quantity

9 Australian Energy Market Commission, https://www.aemc.gov.au/rule-changes/resetting-powerlinks-system-strength-unit-prices


-----

-----

###### Energy reliability


By accelerating uptake of
renewables and storage,
Australia has an opportunity
to gain total energy security
and remove the prospect of
reliability issues.

According to the Australian Energy Market Operator’s
(AEMO) 2023 Electricity Statement of Opportunities
report, “with up to 62 per cent of its coal fleet expected
to close before 2033, Australia’s National Electricity
Market (NEM) is perched on the edge of one of the
largest transformations since the market formed”.

AEMO’s report (published in August 2023) forecast
larger reliability gaps than its previous report in Feb
2023, and highlighted the need for Australia to meet
“an imminent and growing need for firm capacity, new
forms of energy production, and significant consumer
energy investments”.1 In the conservative scenario that
AEMO is required to follow under current regulations,
reliability risks in electricity supply are forecast in
Victoria from as early as 2024, and New South Wales
from 2025–26, which other states following.

However, more realistic scenarios, which account for
the additional generation and storage investment that
is very likely to proceed, paint a different picture. AEMO
reports that if these additional measures for building
renewable capacity and storage proceed on schedule,
the market is forecast to “remain within the reliability
standard in all regions except Victoria in 2028–29”.

This outlook tallies with Rystad Energy’s analysis
that Australia’s electricity market is the most volatile
in the world.[2] The key metric Rystad used to reach
this conclusion was the average difference between
the highest and lowest wholesale electricity prices
during a given hour, with domestic wholesale price

1 Australian Energy Market Operator, Electricity Statement of Opportunities 2023


spreads for Queensland and South Australia seeing
the widest spreads of all markets Rystad investigated.
It also factored in unexpected losses of supply from
unplanned coal generation outages and transmission
line issues.

It is important to note that while wholesale prices may
be volatile, this doesn’t necessarily mean consumers
will experience the same volatility. Retailers enter into
contracts with energy suppliers to manage this volatility
and smooth retail prices.

Rystad concluded that strong investment in rapid,
dispatchable storage assets – like batteries – is among
the measures that can best manage fluctuations

“If the building of renewable
capacity and storage proceed
on schedule, the market is
forecast to remain with the
reliability standard in all
regions except Victoria in
2028–29”

in wholesale prices. Thankfully, that seems to be
something that is on the way. See page 55 for more on
a record-breaking year for battery storage.

Risks and solutions

2023 demonstrated once again that severe weather
events, often difficult to predict, can cause real harm to
communities, including by causing power outages. The


[2 Rystad Energy, https://www.rystadenergy.com/news/australia-electricity-market-most-volatile-in-the-wor](https://www.rystadenergy.com/news/australia-electricity-market-most-volatile-in-the-wor)


-----

summer storms along Australias east coast were a harsh Crucially, AEMOs report highlights the great opportunity
reminder of that,3 leaving thousands of residents temporarily Australia has to take control of the reliability of its energy
without power. grid and provide security. “Federal and state government

initiatives,” said AEMO CEO Daniel Westerman in a press

As Russia’s ongoing war in Ukraine has demonstrated, release, “including transmission projects and mechanisms
energy independence is of vital importance. An overreliance for delivering firming capacity, can address many of the
on a single source of energy can lead to shortfalls and identified [reliability] risks, if delivered to schedule.”
inflated prices, and energy reliability will always be higher
when reliance on external supplies is reduced. Bringing
more renewables into the mix, alongside transmission
investment and the dispatchable storage needed to firm
the power system, will reduce volatility and bring security to
everybody’s electricity supply.

Western Downs Green Power Hub
Western Downs, QLD
Barunggam Country
(Neoen)

3 L Waterson, ABC News, https://www.abc.net.au/news/2023-12-27/how-to-stay-comfortable-and-safe-during-a-power-outage/103267436


-----

Dulacca Wind Farm
Western Downs, QLD
Barunggam Country
(RES)


-----

###### International update


Significant policy mechanisms
such as the US’s Inflation
Reduction Act continue to affect
global investment, trade flows
and supply chains. While figures
for renewable capacity added
and investment worldwide are
up, there is more work to do to
accelerate clean energy and
meet decarbonisation goals.

“China commissioned as
much solar PV in 2023 as
the entire world did in 2022”

According to the International Energy Agency’s (IEA)
Renewables 2023[1] report, “global annual renewable
capacity additions increased by almost 50 per cent
to nearly 510 GW in 2023, the fastest growth rate in
the past two decades”. This follows the International
Renewable Energy Agency’s announcement at the
beginning of last year that 2022 had seen the largest
increase in global energy capacity to date.

According to BloombergNEF,[2] global investment in
the energy transition hit a record USD $1.8 trillion in
2023, up 17 per cent from a year earlier, with electrified
transport being the main driver of that growth. On a
global level, electrified transport overtook renewable
energy as the largest driver of spending, at USD $634

1 International Energy Agency, Renewables 2023

2 BloombergNEF, Energy Transition Investment Trends 2024


GW
#### 510

Approximate renewable capacity
added worldwide
in 2023

(2022: approx. 295 GW)
$ bn

(USD)

#### 623

Global investment in
renewable energy 2023

(+8% year-on-year)
$ bn

(USD)

#### 634

Global investment in
electrified transport 2023


(+36% year-on-year)


-----

billion, up 36 per cent year-on-year. Renewable energy
investment rose 8 per cent to reach $623 billion.

China contributed the most to the global spending
total, with USD $676 billion, the US was in second
place with $303 billion, and the 27 members of the
European Union (EU) contributed a combined USD
$340 billion in investment.

China continues to lead the way in terms of new
renewable capacity added, commissioning as much
solar PV in 2023 as the entire world did in 2022. In
total, China accounts for almost 60 per cent of the
new renewable capacity the IEA expects to become
operational globally by 2028.

These impressive numbers are a reminder of how much
the clean energy transition is taking hold globally, and
of the amount of work that remains to be done. For
instance, the Renewables 2023 report also claims that
while the next five years will continue to see tremendous
growth in renewables, lack of financing for emerging and
developing economies is a key issue that remains to be
adequately solved, and of course many of those nations
are likely to be hit most prominently by the effects of
climate change. BloombergNEF also assessment, which
would have results in members paying a Fires Service
Levy 20 times the current level. The campaign resulted
in renewable still requires nearly three times the level of
investment we are currently seeing.

International policy

Last year we flagged the passing of the US’s Inflation
Reduction Act (IRA) as a momentous moment for
renewables on the international stage, not just because
of what it would do for the energy transition in the US,
but how it would affect global investment, trade flows
and supply chains.

Following the passing of the IRA in August 2022,
there has been a virtual tidal wave of investment
announcements in the US, with the American Clean
Power Association reporting in early 2024, that new clean
energy announcements amounted to over USD $420
billion in capital investments, 282 GW of new clean energy
project capacity, and almost 42,000 new manufacturing
jobs.[3] Goldman Sachs estimates that clean energy
spending by the Biden administration could reach up to
USD $1.2 trillion, but that public spending could in turn
unleash USD $3 trillion in clean energy and low-emissions
investments across the economy.

The full effect of the IRA on international markets is
still playing out, but many other countries and regions
– including Canada and Europe – have been quick to
detail their own policy and funding prescriptions to
protect existing markets and manufacturing or stake
their claims in new clean energy trade.

The Australian Government sees strong opportunities
to leverage the new IRA incentives for electric vehicle

[3 American Clean Power, https://cleanpower.org/investing-in-america/](https://cleanpower.org/investing-in-america/)


uptake to support investment in Australias critical
mineral supply chain – as a US free-trade partner – with
President Biden and Prime Minister Albanese signing
a new ‘Climate, Critical Minerals and Clean Energy
Compact’ in May 2023.[4]

The Australian Government also unveiled $2 billion for
a new Hydrogen Headstart contract-for-difference
scheme, to accelerate the development of large-scale
renewable hydrogen projects in Australia – designed to
maintain competitiveness with the new US hydrogen
production credit.

Other significant global policies included China’s 14[th]
Five-Year Plan, the EU’s REPowerEU and Fit for 55
plans, Canada’s ‘Made In Canada’, and India’s recently
announced Carbon Credit Trading Scheme.

Interestingly, according to S&P Global,[5] international
policies may be having unintended consequences for
global markets: “governments might not have expected
the market response to be so heavily tilted towards
investments in generating assets”. S&P reports that
between August 2022 and June 2023, private capital
energy transition investment in renewable energy
production totalled USD $59.5 billion, while the figures
for industrial decarbonisation (USD $9.7 billion) and
energy storage (USD $8.1 billion), for example, are
significantly lower, suggesting that the types of policy
mechanisms in place around the world may be skewing
investment into some areas more than others, perhaps
because “generating assets (particularly solar PV)…

[have] become bankable: proven [technologies]…
generating steady returns”. It will be interesting to see
the cumulative effect this has in the years to come.

Meanwhile, energy prices for fossil fuels around the
world continue to be affected and to some extent
driven by Russia’s ongoing war in Ukraine, which by
the time of publication will be two years old. We are
still seeing price fluctuations for all forms of fossil
fuels, with the World Economic Forum predicting
in February 2023 that since the beginning of the
conflict, energy costs for households have increased
by “at least 63 per cent and possibly as much as
113 per cent, [contributing] to an increase in global
household expenditure of between 2.7 and 4.8 per
cent.” This is having a huge effect on household
bills across the world, and again highlights that
embracing renewables can lower bills and increase
energy independence, all while contributing to the
mass decarbonisation we need.

At COP28 in Dubai in December 2023, there was a
welcome commitment signed by 198 nations to triple
global renewable energy capacity by 2030, which was
a win for the global renewables movement and a direct
acknowledgement by parties that rapid renewable
energy deployment will be fundamental to addressing
the climate crisis. The challenging task will now be for
governments and industry to scale-up international
efforts to deliver on this ambitious goal.


[4 Federal Government, https://www.pm.gov.au/media/australia-united-states-climate-critical-minerals-and-clean-energy-transformation-compact](https://www.pm.gov.au/media/australia-united-states-climate-critical-minerals-and-clean-energy-transformation-compact)

5 S&P Global, Renewable Energy Funding in 2023: A ‘Capital Transition’ Unleashed


-----

COP 28
Dubai, UAE
(cop28.com.au)


Global renewable energy employment
by technology, 2022 (millions)

- 

*Other technologies includes jobs not broken down by individual energy technologies

Source: International Renewable Energy Agency


-----

Kaban Green Power Hub
Atherton Tablelands, QLD
Jirrbal Country


-----

###### Technology Profiles

Battery storage 55

Bioenergy 58

Hydro and pumped hydro 61

Hydrogen 64

Rooftop solar (including medium-scale) 67

Large-scale solar 79

Wind 85


-----

Victorian Big Battery
Moorabool, VIC
Wadawurrung Country


-----

TECHNOLOGY PROFILE
###### Battery storage


It was a record-breaking
year for large-scale battery
storage, with projects under
construction significantly up on
2022 and massive levels of new
investment.

Last year we reported that data suggested government
measures would help spur an uptick in newly proposed
and committed battery storage projects, and 2023
numbers suggest that has been the case. Q2 2023 saw
the two-billion-dollar mark for new large-scale storage
investment broken in a quarter for the first time, and
Q4 broke matched that record just a few months later,
making 2023 the strongest ever year for new financial
commitments in the large-scale storage space, at $4.9
billion including hybrid projects with storage elements
($4.7 billion for storage-only projects). By comparison,
2022 reached $1.9 billion in new financial commitments
to large-scale storage.

Twenty-seven large-scale batteries were under
construction at the end of 2023, totalling approximately
5 GW / 11 GWh, which is a significant increase on
the equivalent figures from 2022: 19 batteries under
construction totalling approximately 1.4 GW / 2 GWh.
Whichever way you look at the figures, it has been
a bumper year for large-scale storage. The largest
batteries are spread around the National Electricity
Market: three of the top-five largest batteries systems
under construction are located in NSW, one is in VIC
and one in QLD.

The largest utility scale battery system currently
under construction is the 850 MW / 1,680 MWh
Waratah Super Battery in NSW, which being delivered
by the NSW Government through its EnergyCo
authority, and built by Akaysha Energy, which began
construction in May 2023 and expects to conclude
construction in August 2025. Second-largest is the
600 MW / 1,600 MWh Melbourne Renewable Energy
Hub in VIC, which was approved by the Federal
Government in October 2023.


#### 27

large-scale batteries under
construction at end of 2023

(2022: 19)
GW
#### 5 /

GWhGWh
#### 11

approximate combined capacity
of large-scale batteries under
construction at end of 2023

(2022: 1.4 GW /2 GWh)
$
billion
#### 4.9

New financial commitments in
large-scale storage


(2022: $1.9 billion)


-----

Expanding storage

In terms of policy, the current positive period for utility
scale storage looks set to continue, with the Federal
Government’s expansion of the Capacity Investment
Scheme (CIS) in November 2023. Of the capacity
targets set out in that scheme (32 GW by 2030), the
government’s target is to bring on 9 GW of “clean,
dispatchable energy [in addition to] the 1.1 GW already
in progress through the first stage of the CIS”.

Hopefully, incentives such as the CIS will see
the continued growth of large-scale storage as
Australia aims to accelerate construction to meet the
government’s ambitious renewable energy targets.

According to Wood Mackenzie’s APAC Power &
Renewables team, writing in Forbes, part of the reason
for the growth of storage systems in Australia is that
the country is one of the most attractive markets for
battery energy storage systems (BESS).[4] They argue
that “the presence of daily spot markets for power
and system frequency control services offer diverse
revenue streams, which is crucial for the viability of
BESS.” They also suggest that the falling price of lithium
carbonate, which is required for battery production,
could have had a significant impact of willingness
of investors to commit to storage projects. Wood
Mackenzie believes BESS system costs could fall in
Australia by 18 per cent over the next decade.


December 2023 saw a final investment decision being
reached on AGL Energy’s battery project at the Hunter
Energy Hub in NSW, the site of the Liddell coal-fired
power station which closed in April 2023.1 The 500 MW
/ 1,000 MWh grid-scale battery has begun construction
as of the very end of 2023, with commencement of
operations targeted for mid-2026. Total construction
cost is estimated to be in the region of $750 million and
will be supported by a $35 million grant awarded by
the Australian Renewable Energy Agency, as well as a
Long-Term Energy Service Agreement (LTESA).

The largest utility scale battery storage project
commissioned in 2023 was the 150 MW / 300 MWh
Riverina Energy Storage System. NSW’s largest battery
system finished construction in May 2023 and went
live into the grid in October. Designed and developed
by Edify, the project “provides critical stabilising
services to the transmission grid due to [its] advanced
Tesla Megapack systems” and its output is “sufficient
to supply 240,000 homes with two hours of electricity
at peak times”.[2]

Modelling published by the Commonwealth Scientific
and Industrial Research Organisation (CSIRO) in March
2023 predicted that “across the NEM, an additional
11–14 GW/59–69 GWh of storage capacity will be
required by 2030”[3] and while there is still a long way to
go, it looks as if Australia is on a strong path to meet
that requirement.


Five biggest large-scale battery systems
under construction at end of 2023

State Project Name Project owner Locality Size of system

NSW Waratah Super Akaysha Energy Colongra 850 MW / 1,680 MWh

VIC Melbourne Renewable Energy Hub – Phase 1 Equis Australia Melton 600 MW / 1,600 MWh

NSW Liddell Power Station AGL Energy Muswellbrook 500 MW / 1,000 MWh

NSW Eraring Battery – Stage 1 Origin Energy Eraring 460 MW / 920 MWh

QLD Western Downs Green Power Hub Neoen Australia Hopeland 270 MW / 540 MWh

[1 Australian Renewable Energy Agency, https://arena.gov.au/news/green-light-for-australias-largest-grid-forming-battery/](https://arena.gov.au/news/green-light-for-australias-largest-grid-forming-battery/)

[2 Edify Energy, https://edifyenergy.com/energy-storage-systems/dawn-of-a-new-era-in-energy-transition-as-nsws-largest-battery-system-goes-live/](https://arena.gov.au/news/green-light-for-australias-largest-grid-forming-battery/)

3 CSIRO, Renewable Energy Storage Roadmap

[4 Wood Mackenzie’s Power & Renewables team in Forbes, https://www.forbes.com/sites/woodmackenzie/2023/07/11/australias-energy-revolution-the-promise-of-](https://www.forbes.com/sites/woodmackenzie/2023/07/11/australias-energy-revolution-the-promise-of-battery-storage-and-hydrogen/?sh=21cfdd854ee7)
[battery-storage-and-hydrogen/?sh=21cfdd854ee7](https://www.forbes.com/sites/woodmackenzie/2023/07/11/australias-energy-revolution-the-promise-of-battery-storage-and-hydrogen/?sh=21cfdd854ee7)


-----

Other forms of long-duration energy storage are Batteries charging up
growing in Australia, too, for example HydroStor’s Silver
City project in the mining town of Broken Hill in the far Meanwhile, Australian uptake of household batteries
west of New South Wales. It will be a compressed air continues to grow. The Clean Energy Regulator (CER)
storage project and is intended to replace ageing diesel reported that in Q3 2023, 7 per cent of systems
generators and provide backup power to the town. The were installed with a battery – noting that this data is
facility will be a 200 MW / 1,600 MWh storage facility in voluntarily reported to the CER and the real proportion
the Potosi mine.[5] is likely higher. To the end of September 2023, the

CER reported there had been more than 17,000 battery

In November 2023, it was confirmed that an Australian installations, a 14 per cent increase on the 15,000
Renewable Energy Agency (ARENA) programme to reported in the same period in 2022.
put $120 million towards community storage received
applications for more than 10 times that amount. SunWiz figures for 2023 suggest the total number
This was the first round of funding for the Federal of storage units installed was approximately 56,000,
Government’s Community Batteries Funding Program.[6] continuing a clear upward trend from roughly 43,000
According to Energy Storage News, the Department systems in 2022 and 37,000 in 2021, as more and
of Climate Change, Energy, the Environment and Water more Australians embrace energy independence. For
is “delivering 58 community battery installs across the more information on the rooftop solar sector, see our
country, with some already commissioned”. rundown on pages 67.

Blyth Battery
Blyth, SA
Kaurna Country
(Neoen)

5 G Parkinson, RenewEconomy, https://reneweconomy.com.au/air-storage-pioneer-inks-first-of-its-kind-deal-to-keep-lights-on-in-australias-silver-city/

6 A Colthorpe, Energy Storage News, https://www.energy-storage.news/arena-receives-applications-to-fund-au1-3-billion-of-community-battery-storage-in-australia/


-----

TECHNOLOGY PROFILE
###### Bioenergy

The policy landscape for
bioenergy brightened in
2023, with state and federal
governments and private industry
heralding support and investment
in biogas and biofuels.

Accelerating international momentum to meet
decarbonisation goals and higher fossil fuel prices is
driving market demand for alternatives to fossil fuels.
Bioenergy will have a role to play in the broader energy
transition to net zero particularly in the harder-to-abate
sectors including industrial manufacturing, aviation,
agriculture, and marine sectors.

While global investment in the bioenergy sector is
beginning to grow in response to incentives and
mandates in the European Union and the United
States, cost competitiveness and scalability remain
challenging for the Australian bioenergy sector.

However, 2023 saw a number of policy and funding
developments aimed at creating more supportive
conditions for renewable gas, including biogas,
biomethane and other biogenic fuels.

GreenPower launched its voluntary Renewable Gas
Certification Pilot scheme, to support the establishment
of a voluntary market for biogas, biomethane and
renewable hydrogen. The scheme will enable
commercial and industrial gas customers to match
their gas use with renewable gas certificates, and the
pilot is now supporting the creation of certificates for
biomethane injection on the gas network at Jemena’s
new Malabar Biomethane Injection Plant in NSW.

While the scheme is operating as a pilot at present,
renewable gases may be included in the Australian
Government’s Guarantee of Origin scheme in the future.

At a state government level, the NSW Office of Energy
and Climate Change released a consultation paper


seeking feedback on the extension of its legislated
Renewable Fuel Scheme from 2025 to cover biogenic
fuels in addition to its original focus on renewable
hydrogen. The NSW Government is also considering
the expansion of the scheme to mining operators and
liquid fuel users, in addition to large gas users.

The Tasmanian Government released the Tasmanian
Future Gas Strategy which outlined the state
government’s intention to establish the hydrogen and
bioenergy industries to decarbonise its economy for
fossil fuel replacement in heat generation and the
production of transport fuels.

Sustainable aviation fuels (‘SAF’) is one of the leading
opportunities for biofuels, and Australia’s lead science
agency, CSIRO, together with Boeing developed a
Sustainable Aviation Fuel Roadmap, which estimated
that Australian jet fuel demand would increase by a
staggering 75 per cent between 2023 to 2050.

The roadmap identified sufficient feedstock to supply
approximately 5 billion litres of SAF for the domestic
market, enough fuel to power 640,000 return flights
between Melbourne and Sydney on a Boeing 737, and
projects that Australia will have enough feedstocks
by 2025 to produce 60 per cent of domestic jet fuel
demand, growing to 90 per cent by 2050.

The report highlighted the urgent need to deliver a
viable, affordable and domestically made SAF product
to propel the sector’s decarbonisation efforts, and the
Australian Government announced the establishment
of the Jet Zero Council in 2023. The Council will
give a platform for leading feedstock providers,
global sustainable aviation fuel producers, airlines,
airports and industry to collaborate with government
on building a foundation for a viable domestic SAF
industry, and on accelerating deployment.

In signs of the growing momentum of the domestic SAF
industry, 2023 also saw Qantas and Airbus announce a
$200 million Sustainable Aviation Fuel Partnership, and
the Australian Renewable Energy Agency announced
$30 million in grant funding to support development of
domestic SAF production from agricultural feedstocks.


-----

Bioenergy generation in 2023

3.5% 1.4%

of total clean of total electricity
electricity generated generation in Australia
in Australia in 2023 in 2023

(2022: 3.8%) (2022: 1.4%)


-----

Lake Cethana and dam, the site
for Hydro Tasmania’s proposed
750MW pumped hydro project
Cethana, TAS
Moomairremener Country


-----

TECHNOLOGY PROFILE
###### Hydro and pumped hydro


Construction is progressing well
on the Kidston Pumped Hydro
Storage Project, which in 2024
could become Australia’s first
pumped hydro development in
over 40 years.

Hydropower provided 15,307 GWh of generation in
2023, down from 16,537 GWh in 2022, ending a threeyear run of increased generation. Its total contribution
to Australia’s renewable generation stood at 16.4 per
cent, down from 19.7 per cent in 2022.

Genex Power’s 250 MW / 2,000 MWh Kidston
Pumped Storage Hydro Project, which will be the first
pumped hydro project to be built in Australia in over
40 years, is progressing well in its construction, and
looks to be on track to be operational in 2024.[1] The
pumped hydro project is part of the Kidston Clean
Energy Hub, which already houses an operational
50 MW solar farm and 258 MW of wind power. When
complete, Kidston Pumped Storage Hydro Project
will be only the fourth pumped hydro project in
Australia to reach commercial operation.

We reported last year about the difficulties facing
the Snowy 2.0 pumped-hydro battery project in
the Kosciusko National Park, which was originally
scheduled to be completed in 2021. In August 2023,
the Federal Government announced that it was
‘resetting’ the project and renegotiating its agreement
with Snowy 2.0’s leading contractor.[2] The new
estimated cost of the project is now substantially
higher than the original forecast, but the Albanese
Government believes the project is still worth pursuing
given its enormous value in providing security to the
energy grid, particularly as more coal-fired power
stations are scheduled to close.


GWh
##### 15,307

hydropower generation


(2022: 16,537 GWh)
##### -7.4%

annual decrease in
hydropower generation

(2022: +2.5%)

Meanwhile, the Marinus Link project, which will enable
the flow of electricity in both directions between
Tasmania and Victoria, took another step forwards
when in September 2023 a deal between the
Tasmanian and Australia Governments was announced.
However, while the deal ensures the project is likely
to progress, it also halves the proposed capacity
of the project (to balance increased construction
costs), which will now comprise one 750 MW sub-sea
link to the mainland, as opposed to the two initially
proposed. The Australian Energy Market Operator
(AEMO) included Marinus Link in its list of five
“already actionable” projects Australia must have to
realise AEMO’s optimal development pathway,[3] and
in December 2023 the Australian Energy Regulator
published a determination deeming the project’s
revenue proposal “prudent and efficient”, suggesting
there is significant support from industry bodies and
the project is likely to forge ahead.


[1 D Caroll, PV Magazine, https://www.pv-magazine-australia.com/2023/08/16/genex-reaches-construction-milestone-on-2-gwh-pumped-hydro-project/](https://www.pv-magazine-australia.com/2023/08/16/genex-reaches-construction-milestone-on-2-gwh-pumped-hydro-project/)

[2 T Lowrey, ABC News, https://www.abc.net.au/news/2023-08-31/snowy-hydro-reset-project-to-cost-12-billion/102797650](https://www.abc.net.au/news/2023-08-31/snowy-hydro-reset-project-to-cost-12-billion/102797650)

[3 Australian Energy Market Operator, https://aemo.com.au/energy-systems/major-publications/integrated-system-plan-isp/2024-integrated-system-plan-isp](https://aemo.com.au/energy-systems/major-publications/integrated-system-plan-isp/2024-integrated-system-plan-isp)


-----

Hydropower generation in 2023

16.4% 6.5%


6.5%


of total clean
electricity generated
in Australia in 2023

(2022: 19.7%)

Hydropower contribution to
Australian electricity generation


of total electricity
generation in Australia
in 2023

(2022: 7.1%)


Year Generation (GWh) Contribution to renewables Contribution to total electricity

2013 19,243 55.4% 8.2%

2014 14,555 45.9% 6.2%

2015 14,046 40.1% 5.9%

2016 17,747 42.3% 7.3%

2017 13,331 34.6% 5.9%

2018 17,002 35.2% 7.5%

2019 14,166 25.7% 6.2%

2020 14,638 23.3% 6.4%

2021 16,128 21.6% 7.0%

2022 16,537 19.7% 7.1%

2023 15,307 16.1% 6.4%


-----

In Queensland, the Borumba Pumped Hydro Lake Lyell in NSW. According to EnergyAustralia, the
Energy Storage project at Borumba Dam – which project would use water from Lake Lyell (a man-made
when complete will have a capacity of up to 2,000 lake originally built to support local power stations)
MW – continues to progress. In October 2023, the [and] existing transmission infrastructure”. Expected
project was declared a ‘coordinated project’ by the to operate for up to 80 years, the project would
Coordinator General, meaning a rigorous assessment generate 335 MW of electricity for eight hours at a
of social, economic and environmental matters can time.
begin. At the end of 2023, the project’s developer,
Queensland Hydro, released two requests for tenders Hydro power is one of most mature forms of
for geotechnical surface drilling and geotechnical renewable generation, and for the first time in over 40
services and management support. Together, those years, Australia is likely to have a new project entering
two packages form a significant part of the project’s the power system in 2024, meaning hydro power as
exploratory works program.[4] a percentage of renewable generation in Australia

will likely increase. Indeed, Statista predicts that the

In December, EnergyAustralia unveiled design details annual growth rate of hydropower in Australia will be
for its proposed 335 MW pumped hydro project at 2.67 per cent from 2024–28.[5]

Kidston Pumped Hydro Project
Kidston, WA
Ewamian Country
(Genex Power)

4 E Ingram, Hydro Review, https://www.hydroreview.com/dams-and-civil-structures/dam-design-and-construction/queensland-hydro-released-two-packages-for-
bid-to-advance-borumba-pumped-storage/

5 Statista, https://www.statista.com/outlook/io/energy/renewable-energy/hydropower/australia


-----

TECHNOLOGY PROFILE
###### Hydrogen

2023 was a significant year for
Australia’s nascent renewable
hydrogen industry, with the
large pipeline of projects
receiving extra impetus from the
Federal Government’s $2 billion
Hydrogen Headstart program.

Renewable hydrogen represents a major source of
new demand for renewable power projects, and an
important green fuel for decarbonisation of hard-toabate energy needs and industrial growth.

May 2023’s Federal Budget provided a significant
win for renewable hydrogen in Australia, with backing
for the nascent industry to the tune of $2 billion in
the form of the Hydrogen Headstart scheme. The
scheme is a contract-for-difference program, expected
to support at least two large-scale early mover
projects, by providing a production credit to bridge
the gap between the project’s cost of green hydrogen
production and the market price.

Following a large industry response, six large-scale
renewable hydrogen projects representing a total
electrolyser capacity of more than 3.5 GW had been
shortlisted for the competitive tendering round, and
full detailed applications are due in late June 2024.
Successful projects will be announced in late 2024.

While it will be some time until we see the results of
the Hydrogen Headstart scheme come to fruition in
the shape of completed projects, the future potential
for the hydrogen industry in Australia is huge. Rystad
Energy predicts that by 2030, Australia could be the
world leader in green hydrogen production, with an
estimated 2 million tonnes of green hydrogen produced
annually.1 The Clean Energy Council is campaigning
for the Australian Government to build on the initial


Headstart program with a longer-term policy and
funding program to support the delivery of more early
mover, large-scale hydrogen projects.

Policy developments

There were several significant developments in the
hydrogen sector in 2023, both at federal and state
levels. The Australian Government announced that
it would review and refresh the National Hydrogen
Strategy, originally published in 2019 to ensure it
“positions Australia on a path to be a global hydrogen
leader by 2030 on both an export basis and for the
decarbonisation of Australian industries”. Western
Australia, which has strong green hydrogen prospects,
also began a review of its own state-based strategy.

Significant milestones were also reached in advancing
Australia’s emerging hydrogen hubs. In October the
Federal Government announced it would invest $69.2
million to develop the 2.2 GW Central Queensland
Hydrogen Hub, the biggest green hydrogen project
in Australia,[2] which is planned to be operational by
mid-2027. The Government stated that the hub would
be able to produce up to 292,000 tonnes of green
hydrogen a year by 2031.

In New South Wales, the Government awarded $109.3
million of funding from its hydrogen hub initiative to three
hub projects in the Illawarra, the Hunter Valley and Moree
Plains, as part of its larger Hydrogen Strategy that aims to
deliver its 2030 targets of 110,000 tonnes of annual green
hydrogen production and 700 MW of electrolyser capacity.
Origin Energy will work with Orica to develop a Hunter Valley
Hydrogen Hub in the Newcastle industrial and port zone
with an initial electrolyser capacity of 55 MW. BOC’s Illawarra
Hydrogen Technology Hub will initially have 10 MW of
electrolyser capacity at Port Kembla to provide four tonnes
of green hydrogen per day, and in the long term aims to
have 650 MW of electrolyser capacity. The Hiringa Sundown
Project near Moree on the Keytah cotton farm near Moree
will house an initial 12 MW of electrolyser capacity and
targets 112 MW capacity by 2030.


[1 A Klevstrand, Hydrogen Insight, https://www.hydrogeninsight.com/production/exclusive-which-ten-countries-will-be-the-biggest-producers-of-green-hydrogen-](https://www.hydrogeninsight.com/production/exclusive-which-ten-countries-will-be-the-biggest-produce)
[in-2030-/2-1-1405571](https://www.hydrogeninsight.com/production/exclusive-which-ten-countries-will-be-the-biggest-produce)

[2 J Bowler, RenewEconomy, https://reneweconomy.com.au/australias-biggest-green-hydrogen-project-given-69m-in-new-round-of-funding/](https://reneweconomy.com.au/australias-biggest-green-hydrogen-project-given-69m-in-new-round-of-fund)


-----

In an Australian first, New South Wales is also
developing a new Renewable Fuel Scheme which will
place an obligation on gas retailers and large gas users
to purchase renewable hydrogen certificates, with
liability to commence in 2025. In 2024, the state will
also consider the potential expansion of the scheme to
include additional renewable fuels and liable parties.

Several large-scale hydrogen production projects
also reached final investment decision in 2023.
These projects include AGIG’s Hydrogen Park Murray
Valley renewable hydrogen blending project, which
has received support from the Australian Renewable
Energy Agency. In late 2023, Fortescue gave the green
light to the Gladstone Renewable Hydrogen plant in
Queensland and the Christmas Creek Green


Iron Facility at the companys iron ore mine in Western
Australia. The Christmas Creek project will use
renewable hydrogen to produce 1,500 tonnes of green
iron from magnetite and hematite ores with the first
green iron production expected in 2025.

Also in Western Australia, Infinite Green Energy
(IGE) acquired the Northam Solar Farm in Western
Australia in early 2023 with a view to using the 11
MW solar farm to produce four tonnes of renewable
hydrogen via electrolysis per day.[3] IGE ultimately
plans to expand the farm’s capacity to 18 MW, with
production of green hydrogen set to commence in
Q4 2024. If the site is operational by that time, it
should be the first commercial-scale producer of
green hydrogen in Australia.


Top 10 countries by green hydrogen
production (thousands of tonnes annually)

2500

2000

1500

1000

500

0

2023 2024 2025 2026 2027 2028 2029 2030

Australia United States Spain Canada Chile

Egypt Germany India Brazil Morocco

Source: Rystad Energy via Hydrogen Insight, Feb 23

[3 T Oates, Energy Magazine, https://www.energymagazine.com.au/australias-first-commercial-scale-green-hydrogen-project-commencement-date-set/](https://www.energymagazine.com.au/australias-first-commercial-scale-green-hydrogen-project-commencement-date-set/)


-----

Port Stephens Koala Hospital
One Mile, NSW
Worimi Country


-----

TECHNOLOGY PROFILE
###### Rooftop solar
(Systems up to 100 KW)

2023 was an outstanding year
for rooftop solar, with numbers
of installations and capacity
added approaching the record
levels we saw in 2021.

During a year in which new utility scale generation
commitments and developments slowed, Australia’s
rooftop solar industry has been doing a lot of the heavy
lifting in the clean energy transition. This reinforces
just how important important the industry is to
Australia’s decarbonisation push, as well as to individual
Australians, for whom it can bring reduced energy bills
and greater energy independence, particularly when
combined with household batteries.

In 2023, 337,498 solar PV systems were installed
across Australia (up from 315,499 in 2022) for a total
installed capacity of 3.1 GW (up from 2.7 GW). Both
numbers represent a fantastic year for rooftop solar
in Australia, even if they are slightly lower than the
record-high numbers we saw in 2021, when there were
377,448 installations for a combined 3.3 GW capacity.

In 2022, many Australians looked to solar systems as a
way of offsetting skyrocketing energy prices following
Russia’s invasion of Ukraine, seeking the greater energy
independence distributed home systems can provide.
That trend looks to have continued in 2023, even
though the rate of increase in retail energy prices has
not been as pronounced, demonstrating that rooftop
solar has earned its social licence in Australia and is
seen as a viable, achievable shift for consumers as a
means of taking more control of their energy costs.
According to SunWiz, November 2023 was the biggest
ever month for rooftop capacity installed.1

The 3.1 GW of combined rooftop solar installed capacity in
2023 once again trumps the capacity added by largescale renewable projects which became operational in
2023, which totalled approximately 2.8 GW in 2023.


#### 337,498

rooftop solar
installations in 2023

(2022: 315,499)
GW
#### 3.1

rooftop solar capacity
added in 2023


(2022: 2.7 GW)
million
#### 3.7

Approx. 3.7 million Australian
households with rooftop solar

(2022: 3.4 million)


[1 S Vorrath, RenewEconomy, https://reneweconomy.com.au/rooftop-solar-installs-smash-record-as-households-turn-to-bigger-systems-pu](https://reneweconomy.com.au/rooftop-solar-installs-smash-record-as-households-turn-to-bigger-systems-pu)


-----

Rooftop solar generation in 2023

28.5% 11.2%


28.5%


11.2%


of clean energy
generated in Australia
in 2023

(2022: 25.8.%)

State of the sector

As it did in 2022, NSW added the most installed
capacity over the past year, with just over 1 GW, a
figure which surpasses even the record year in 2021
(996 MW) and is the single-largest state-specific rise
in installed capacity on record. The only states to
install less capacity in 2023 than 2022 were WA (276
MW versus 287 MW in 2022) and the NT (15.7 MW
versus 19.3 MW in 2022). Although QLD did not lead
in 2023 for MW installed or for installations, its 83,529
solar installations mean it is the first state to hit the
significant milestone of over one million rooftop solar
installations, meaning it has the most in the country.[2]
NSW, with 958,867, is not far behind.

The average size of solar systems installed also
continued to trend upwards, reaching 9.3 kW
compared to 8.7 kW in 2022. The Australian Energy
Council believes that the trend towards larger system
sizes may begin to plateau as the years go by, as
technological advancements allow for more efficient
solar panels and inverters, and there is a growing
emphasis on optimising the size of solar installations
to match a household’s energy needs.[3] But that trend
would represent effective optimisation and not be seen
as a negative.

There are now just over 3.7 million solar households in
Australia, up from approximately 3.4 million at this time


of total Australian
electricity generated
in 2023

(2022: 9.3%)

last year, demonstrating the enormous commitment
Australians have to embracing rooftop solar.

Rooftop solar accounted for 28.5 per cent of renewable
generation in 2023 and 11.2 per cent of energy
generation overall. Those figures are both up from
2022 – 25.8 per cent and 9.3 per cent respectively.

PV policy

While the Federal Government’s big announcement
at the end of 2023 – the expanded Capacity
Investment Scheme – is primarily focused on utility
scale developments, there have nevertheless been
significant developments on the smaller-scale side
of things.

Perhaps chief among those came in November 2023,
when the Energy and Climate Change Ministerial
Council agreed to develop a National Consumer Energy
Resources Roadmap, as well as the establishment of a
set of standards for consumer energy resources, which
is something the industry has long needed to improve
reliability and efficiency.

In May 2023, the Northern Territory Government
announced 15 housing properties in Alice Springs
would be fitted with solar panels and battery energy
storage systems as part of the $12.5 million Alice


[2 J Bowler, RenewEconomy, https://reneweconomy.com.au/sunshine-state-milestone-as-queenslanders-install-one-million-solar-rooftops/](https://reneweconomy.com.au/sunshine-state-milestone-as-queenslanders-install-one-million-solar-rooftops/)

3 Australian Energy Council, Solar Report Q3 2023


-----

Springs Future Grid project, designed to help the distribution network. This will bring down costs not only
government plan future public housing builds.[4] for the owners of the solar and battery systems, but for

all energy users.

Following on from Queensland’s announcement of an
emergency backstop mechanism in 2022, which allows The focus needs to be on how to encourage more
networks to remotely disconnect solar power and orchestration of rooftop solar and storage, but that
battery systems for short periods during emergencies needs to be driven by consumers who make informed
in order to maintain energy security and prevent load choices and have trust in the installation process and
emergencies, Victoria enacted its own backstop the quality of the product.
mechanism in 2023, the first phase of which came into
effect in October, affecting newly installed, upgraded Australia’s rooftop solar industry is already world-
or replaced rooftop solar systems over 200 kW. From leading, and with the right policy settings it could really
July 2024, it will also affect systems less than or equal take off and accelerate the clean energy transition.
to 200 kW. The necessity for these mechanisms is a
result of more solar being installed in the energy grid,
which is a positive, and will allow more solar to be
safely installed.

Rooftop solar future

Consumer uptake of rooftop solar in Australia has been
built off the back of the very successful Small-Scale
Renewable Energy Scheme (SRES) program, which
has helped reduce upfront costs associated with the
purchase of rooftop solar, as well as building strong
compliance requirements.

Australia needs to carefully consider how the SRES
or another incentive-based rebate program can be
expanded to included not only rooftop solar, but
household batteries and other distributed energy
resources as well. The ability to store excess solar
PV generation during the day and be used during the
evening peak will ensure we better utilise the existing

4 D Carroll, PV Magazine, https://www.pv-magazine-australia.com/2023/05/04/nt-government-delivers-solar-and-storage-trial-for-public-housing/


-----

Medium-scale solar

(Systems between 100 kW and 5 MW)


MW
#### 85

New medium-scale solar
capacity added in 2023

(2022: 66 MW)


MW
#### 830

Total capacity of the medium-scale
solar sector

(2022: 745 MW)


Medium-scale solar generation in 2023


0.7%


1.8%


of renewable energy
generation in Australia
2023

(2022: 1.2%)


of total energy
generation in Australia
2023

(2022: 0.4%)


-----

St Augustine’s College
Brookvale, NSW
Guringai Country
(Solaheart)


Cumulative installed capacity (MW)
of medium-scale solar systems

900

800

700

600

500

400

300

200

100

0

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Note: Due to lags in Clean Energy Regulator processes for registration and publishing of data on the capacity of medium-scale solar systems, the capacity listed for the
2022 and 2023 year is likely to be underestimated.


-----

Solar Design and
Installation awards


The Clean Energy
Council’s Solar Design
and Installation Awards
celebrate those in
Australia’s flourishing
solar installation and
design industry who take
their ideas to the next
level.

The 2023 winners demonstrated innovation
and ingenuity, and the inherent flexibility of
rooftop solar to meet the energy needs of
Australian households and businesses.

WINNER:
UNDER 100 KW – DOMESTIC

Phillip Christian
Solpac Energy Solutions

Working with Solpac Energy Solutions, Philip installed
two stacks of BYD HV batteries, each connected
to a 5 kW Fronius Gen24 inverter on a three-level
building overlooking Queensland Alumina Limited
(QAL) and the Gladstone Harbour. Solpac’s design
objective was simple: to get as close to eliminating the
$1,500 quarterly power bill as possible, while using
only the available roof space and staying within the
photovoltaic (PV) 2x oversize ruling for hybrid solar
inverters.


-----

WINNERS:
UNDER 100 KW – COMMERCIAL

Matthew Linney and Joel Cronan
Iberdrola Australia

Mark Fanning
Flow Power

Working with Iberdrola Australia, Matthew and Joel
designed and installed a designed a combined solar
and EV charging solution for the Lismore Council.
The structure used bifacial solar panels to generate
electricity from the high reflected light in the car park
as well as directly from the sun.

The structure was also designed to reflect the shape
of a butterfly and provide a habitat for the local,
endangered Richmond Birdwing Butterfly, which had
also been a focus of local environmental groups. The
panels provided water collection for native plants
and vines favoured by the butterflies, with a storage
tank and reclaimed timber panels helping improve
sustainability.

Flow Power, teaming with Mark, designed and installed
a 96.8 kWp (80 kVA) solar PV system on the Lake
Mountain Alpine resort, to help manage the extreme
seasonal load, and reduce carbon emissions and
operating costs of the resort’s microgrid.

WINNER:
OVER 100 KW

Sam Saada, Eddie Greco,
Michael O’Mahony, Alex
Musgrove, Joel Gilchrist, Veli
Markovic and Pat Carne
Greenwood Solutions

Greenwood Solutions was contracted to design and
install a solar system to help power the substantial
pump electrical loads that a Victorian wastewater
treatment plant experiences, reducing the plant’s
energy bills and carbon footprint. At the core of this
pioneering venture lay the ingenious concept of
harnessing solar energy through a floating PV system.


-----

Peel Microgrid
Nambeelup, WA
Binjareb Country
(Peel Renewable Energy)


CASE STUDY:
Peel Microgrid

The Peel Microgrid is an embedded-network power
system, with a single connection to the South
West Interconnected System, that feeds all of the
businesses at the Nambeelup Kaadadjan business
park where it resides. It has on-site solar generation
and battery storage for storing energy which isn’t used
during the day, and is the first renewable industrial
microgrid in Western Australia serving multiple green
titled lots.

Microgrids – groups of interconnected loads and
distributed energy resources that act as a single grid
entity – support existing electricity networks through
embedded renewable generation and storage,
allowing costs to be localised. The Peel Microgrid
currently features a 1.2 MW peak ground-mounted
solar array, supported by a 1.8 MW/2.5 MWh batter
storage system.


Stage one of the industrial estate is fully sold, with
stage two almost fully sold. There are plans to expand
the solar generation onsite, either on rooftops or
the ground, and additional storage is also being
considered. Onsite generation is anticipated to grow
over the next decade towards 30 MW of solar power
and 58 MWh through its battery energy storage
system. The microgrid currently delivers a minimum of
50 per cent renewable energy to all customers of the
business park, as well as savings of up to 30 per cent
on regulated tariffs.

Distributed energy systems such as the Peel
Microgrid are essential for bolstering Australia’s
clean energy transition, providing reliable, low-cost
renewable power.


-----

Top solar postcodes in each state,

by number of installations

Casuarina
**NT 0810**


3,916 installations
26,896 kW capacity


Bundaberg
**QLD 4670**

|Col1|NSW 2155|
|---|---|
||11,470 installations 80,949 kW capacity Macgregor ACT 2615|
|ACT 261 8,227 installations 7,224 ins 42,475 kW capacity 44,658 k Hoppers Crossing Launceston VIC 3029 20,172 installations TAS 7250|ACT 261|


20,675 installations
112,652 kW capacity

Kellyville Ridge


4,509 installations
26,121 kW capacity


Salisbury

Madora Bay
**WA 6210**

19,671 installations **SA 5108**
87,161 kW capacity

8,227 installations
42,475 kW capacity

Hoppers Crossing
**VIC 3029**

20,172 installations
125,182 kW capacity

Annual solar PV installations

400,000

350,000

300,000

250,000

200,000

150,000

100,000


2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

198,208 360,745 343,320 200,407 180,139 141,500 132,967 174,942 224,852 284,031 370,320 377,448 315,499 337,498


-----

Annual installed capacity of solar PV (MW)

3500

3000

2500

2000

1500

1000

500

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

389.75 872.24 1,035.75 792.19 800.26 705.92 747.82 1,116.37 1,616.03 2,190.81 2,962.81 3,315.96 2,742.07 3,148.25

Average solar PV system size (kW)

|2010 2012 2014 2016 2018 2020 2022 1.97 3.02 4.44 5.64 7.19 8.00 8.69|Col2|
|---|---|
|||


2009 2011


2013 2015 2017 2019 2021 2023


1.54 2.42 3.95 4.99 6.38 7.71 8.79 9.33


-----

Total number of Clean Energy Council
accredited installers and designers

10,000

8000

6000

4000

2000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

3084 4497 4824 4601 4404 4150 4312 4919 5864 6566 7713 8682 8988 9262


YEAR ACT NSW NT QLD SA TAS VIC WA Intl TOTAL

2010 46 879 16 675 252 45 754 414 3 3084

2011 53 1034 22 1187 593 71 1004 531 2 4497

2012 48 948 28 1391 650 120 1122 514 3 4824

2013 44 894 41 1336 604 144 1093 439 6 4601

2014 44 908 47 1263 521 137 1075 401 8 4404

2015 44 916 51 1151 490 109 998 384 7 4150

2016 56 951 70 1188 500 101 974 465 7 4312

2017 66 1085 72 1354 552 112 1059 612 7 4919

2018 91 1323 81 1571 653 112 1316 712 5 5864

2019 103 1539 86 1797 694 116 1510 716 5 6566

2020 129 1905 117 2121 810 130 1707 793 1 7713

2021 171 2231 118 2407 846 130 1940 838 1 8682

2022 197 2375 101 2471 881 138 2011 812 2 8988

2023 2520 202 781 2521 2091 90 885 158 3 9262


-----

Finley Solar Farm
Finley, NSW
Yorta Yorta Country


-----

TECHNOLOGY PROFILE
###### Large-scale solar
(Systems larger than 5 MW)


Completed large-scale solar
projects and capacity added
are both up on 2022 levels,
but figures for new financial
commitments are low, and need
to be accelerated.

Fourteen large-scale solar projects were commissioned
in 2023, amounting to 1.9 GW of new capacity. Those
figures are both up from 2022 (when 12 large-scale
projects added 841 MW to the power system) and
arrest the three-year trend of large-scale solar projects
falling in number and total capacity.

In 2022, NSW was the leading large-scale solar state,
commissioning eight of the country’s 12 projects. In
2023, Queensland has taken that title, commissioning
five of the 14 projects for a combined capacity of 860
MW. NSW comes in second with three projects, for a
total of 609 MW.

After a bumper year for large-scale solar in 2021, when
all five of Australia’s largest solar farms came online in
a single year, 2022 was something of a dip in terms
of new capacity – the largest solar farm being the 150
MW Suntop Solar Farm. 2023 fared much better, with
400 MW farms entering the grid in both Queensland
and NSW: respectively Neoen’s Western Downs Green
Power Hub and ACEN Australia’s New England Solar
Farm Stage 1. In 2023, ACEN Australia secured a 20year Long Term Energy Service Agreement (LTESA) for
the project in the NSW Government’s first renewable
energy and storage auction. Those two projects are
now the joint-largest solar farms in Australia.

Of the 56 renewable energy projects under
construction as of December 2023, 38 were largescale solar projects, down from 48 at the same stage in
2022. The largest projects in that list are another two
400 MW developments, both in NSW: BJEI Australia’s
Wellington North Solar Farm, and ACEN Renewables’
Stubbo Solar Farm. Out of all the large-scale solar


GW
#### 1.9

New large-scale solar capacity
added in 2023

(2022: 841 MW)

GW
#### 8.2

Cumulative large-scale solar
capacity in Australia


(2022: 6,5 GW)
#### 14,802
GWh

Generation from solar farms in
Australia in 2023

(2022: 11,733 GWh)


-----

farms currently under construction, the top five are
all in NSW, meaning we could possibly see NSW
overtaking VIC on the ranking of the states for whom
renewables form the highest proportion of their
energy mix.

In 2023, seven large-scale solar projects reached
financial commitment for a total of 912 MW, down from
10 projects and 1.5 GW in 2022. If hybrid projects with
solar generation are included, the number for 2023
is stronger at 11 projects and 1.3 GW of generation.
New financial commitments to large-scale solar
projects in 2023 stood at $912 million, down from $1.5
billion in 2022, reflecting the country wide decline in
commitments to new generation projects in 2022.

In its report, Renewables 2023, the International Energy
Agency reined in forecast growth for renewable energy
in Australia due to policy uncertainty “following early
achievement of its Large-Scale Renewable Energy
Target”.1 While there were supportive renewable energy
targets announced in 2022, clearly targets alone, in the
absence of policy mechanisms, are not always enough
to drive investment. Hopefully the Federal Government’s
expansion of the Capacity Investment Scheme
announced in late 2023 will help bring on the kind of
investment Australia needs in order to meet its targets.

Large-scale solar generation in 2023

15.9%

6.3%


of total clean energy
generated in Australia
in 2023

(2022: 14%)

1 International Energy Agency, Renewables 2023


of total Australian
electricity generated
in 2023

(2022: 5%)


-----

Cumulative installed
large-scale solar capacity (MW)

9000

8000

7000

6000

5000

4000

3000

2000

1000

500

0

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Large-scale solar projects commissioned in 2023


Western Downs
Green Power Hub
**QLD**
Owner: Neoen Australia
Capacity (MW): 400

Avonlie Solar Farm
**NSW**
Owner: Iberdrola Australia
Capacity (MW): 200

Port Augusta
Renewable Energy
Park - Solar Farm
**SA**
Owner: Iberdrola Australia
Capacity (MW): 107

Mt Keith
Solar Farm
**WA**
Owner: TransAlta
Capacity (MW): 27.4

Leinster Solar Farm
**WA**
Owner: TransAlta
Capacity (MW): 10.7


New England
Solar Farm Stage 1
**NSW**
Owner: ACEN Australia
Capacity (MW): 400

Columboola
Solar Farm
**QLD**
Owner: Hana Financial Investment
Capacity (MW): 162

Mica Creek
Solar Farm
**QLD**
Owner: APA Group
Capacity (MW): 88

Cohuna Solar Farm
**VIC**
Owner: Enel Green Power
Capacity (MW): 27.3

Wathagar Solar
**NSW**
Owner: Sundown Pastoral Company
Capacity (MW) : 8.66


Kiamal Solar Farm
**VIC**
Owner: Total Eren
Capacity (MW): 200

Edenvale Solar Park
**QLD**
Owner: Eneos & Sojitz Corporation
Capacity (MW): 146

Warwick Solar Farm
**QLD**
Owner: The University of Queensland
Capacity (MW): 64

Murray Bridge Onkaparinga
Pipeline Pump 2
**SA**
Owner: South Australia Water Corporation
Capacity (MW): 13.02


**8**

**1**

**10**

**13** **5** **6**

**9**

**14**

**7** **2**

**12**

**4**

**3**

**11**


-----

op five Australian solar farms by capacity

Western Downs
Green Power Hub
**QLD**

Owner: Neoen Australia
Fully operational: 2023
Capacity (MW): 400

New England
Solar Farm Stage 1
**NSW**

Owner: ACEN Australia
Fully operational: 2023
Capacity (MW): 400

Kiamal Solar Farm
**VIC** Darlington Point

Owner: Total Eren Solar Farm
Fully operational: 2021 **NSW**
Capacity (MW): 200 Limondale

Owner: Octopus Energy and Edify

Sun Farm

Fully operational: 2021

**NSW** Capacity (MW): 275


Owner: RWE
Fully operational: 2021
Capacity (MW): 220


New England Solar Farm
Uralla, NSW
Anaiwan Country


-----

Girgarre Solar Project
Stanhope, VIC
Yorta Yorta Country
(Enel Green Power)


CASE STUDY
Girgarre Solar Project

In the third quarter of 2023, construction commenced
on the 93 MW Girgarre Solar Farm Project, located
approximately 50km west of Shepparton, Victoria. The
project, which involves an overall investment of more
than $140 million, is expected to become operation
in early 2025. When completed, Girgarre will produce
approximately 200 GWh/year, powering approximately
43,000 Victorian households annually.

“The mounting structures and tracking systems
that support the solar modules are currently under
construction,” says Werther Esposito, CEO at Enel
Green Power Australia (EGPA). “Piling (the process
of driving mounting piles into the ground) is ongoing
across the site.”

“Enel Green Power is committed to a Creating Shared
Value approach,” says Esposito. “This includes active
engagement with the Girgarre Development Group on
a number of initiatives to benefit the local community.

“Earlier this year, we commenced engagement with
Yorta Yorta Nation Aboriginal Corporation (YYNAC),


including entering into a formal agreement for the
life of the project. The agreement underlines that
both EGPA and YYNAC recognise the benefits of
working together respectfully and collaboratively to
manage, protect and promote Yorta Yorta Cultural and
Intellectual Property and local economic development
in respect to the project.”

Enel Green Power Australia already operates three
solar farms in Australia, totalling approximately 310
MW. It is also currently building the 76 MW Flat Rocks
Stage 1 wind project in Western Australia.

As construction began earlier this year, Hon Lily
D’Ambrosio, Vic Minister for Energy and Resources,
said: “The Girgarre Solar Farm will be an important part
of Victoria’s transition to 95 per cent renewable energy
generation by 2035. It will deliver affordable and
reliable renewable energy to our grid once complete,
and create local jobs and opportunities during its
construction.”[2 ]


[2 J Hill, RenewEconomy, https://reneweconomy.com.au/construction-begins-at-new-solar-farm-in-regional-victoria-after-sod-turning/](https://reneweconomy.com.au/construction-begins-at-new-solar-farm-in-regional-victoria-after-sod-turning/)


-----

MacIntyre Wind Farm
Warwick, QLD
Gidhabal Country


-----

TECHNOLOGY PROFILE
###### Wind

2023 was a slow year for wind
power in Australia in terms
of capacity added, which
was down on 2022, and also
in terms of new investment
commitments.

Wind power accounted for 33.9 per cent of Australia’s
renewable power generation in 2023, down from
35.6 per cent in 2022. However, as a percentage of
Australia’s overall power generation, including nonrenewables, wind rose from 12.8 per cent in 2022 to
13.4 per cent in 2023.

The fall to 33.9 per cent is likely a result of the fact
that while new large-scale additions to the grid
were relatively slow in 2023 (seven wind farms were
commissioned, compared with eight in 2022), other
forms of renewables continued to grow at pace, most
notably the rooftop solar sector. The higher percentage
of overall generation is likely down to the decreasing
prevalence of fossil fuels, which despite their stillwidespread use, are falling overall.

Of the seven wind farms commissioned in 2023, the
largest is Squadron Energy’s 244 MW Bango Wind Farm
in NSW, which commenced commercial operations
in early 2023. The third-largest wind farm in NSW,
it produces enough electricity to power 144,000
homes. The second-largest commissioned project is
also run by Squadron Energy, this time in Victoria: the
38-turbine 209 MW Murra Warra Wind Farm (Stage 2).
Queensland led the way for commissioned wind farms
in 2023, with three.

There were no new announced financial
commitments to utility scale wind projects in 2023
(compared to six in 2022),[1] which is cause for
concern in the context of the dominant position that


wind farms commissioned
in 2023

(2022: 8)
MW
#### 942

new wind capacity added
in 2023

(2022: 1,411MW)

wind power should have in new renewable energy
builds over the coming decade. The Australian
Government’s announced expansion of the Capacity
Investment Scheme is intended to stimulate
increased investment activity, which will need to
be complemented by decisive efforts to accelerate
the often slow, complex and inefficient planning and
assessment processes in many jurisdictions.

In a slow year, the closest the industry came to a new
financial commitment was CS Energy’s agreement to
take a 50 per cent stake in the up-to 372 MW Boulder
Creek Wind Farm. CS Energy is a QLD state-owned
energy company with, until recently, a focus on thermal
generation assets. This is its first major investment in
large-scale wind.[2] Construction on the Boulder Creek


1 The Uungula wind farm reached financial close in late 2023, but was not publicly announced until 2024, meaning it was not captured in the data for this report.

[2 S Vorrath, RenewEconomy, https://reneweconomy.com.au/cs-energy-takes-50-stake-in-its-first-wind-farm-in-big-step-away-from-coal/](https://reneweconomy.com.au/cs-energy-takes-50-stake-in-its-first-wind-farm-in-big-step-away-from-coal/)


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Wind Farm is expected to commence in mid-2024.
Stage one will bring capacity of 228 MW.

The largest wind power project under construction
in Australia remains Acciona’s MacIntyre Wind Farm,
which was to be the country’s first gigawatt-scale
wind development, but the Karara element (see below)
has been cancelled. Significant progress was made
in 2023 on MacIntyre Wind Farm, including 85 fully
completed wind turbine generators and positioning of
final foundations.[3] The project, which represents a total
investment of $1.96 billion and according to Acciona
will power 700,000 homes and create 400 new jobs,
is on course to be operational in 2024. The largest
operational wind farm in Australia remains Goldwind’s
532 MW Stockyard Hill Wind Farm in Victoria, which
became fully operational in 2022.

Unfortunately, the 103 MW Karara Wind farm, which
was being proposed for development by Queensland
Government-owned CleanCo alongside MacIntyre
Wind Farm, is no longer progressing. “As a result of
significant delays to the connection process, and
subsequent impact to costs, CleanCo is pausing
development of the [Karara] project,” said CleanCo.

States and sanctions

Providing 36.2 per cent of Australia’s wind generation,
Victoria continues to lead the states. This figure has
risen from 33.7 per cent in 2022. As mentioned above,
the second-largest wind farm commissioned in 2023
was in Victoria, and the second-largest wind farm in
development (after MacIntyre Wind Farm, detailed
above) is the 756 MW Golden Plains Wind Farm in Vic,
so Victoria’s status as Australia’s number-one wind
generating state is unlikely to change anytime soon. The
Golden Plains Wind Farm is divided into two parts – East
and West – which, when completed, will add up to around
1,330 MW of capacity.

While 2023 hasn’t been a stellar year for new developments
in the wind sector, there was good news in June as GPE
NemLog2 reported that wind farms in Australia had set
a new instantaneous output record of 7,323.9 MW, set at
10:15pm on June 8. Around the same time, Victoria bettered
its instantaneous wind output three times in a single week.[4]

In Victoria there was difficult news in August 2023 for
the proposed Willatook Wind Farm, when a decision
was made by the Victorian Government to impose
a five-month ban on construction work every year
in an attempt to protect the endangered brolga and
Southern bent-wing bats that live in the area. In
addition, the ruling imposed extensive buffer zones
around vegetation that would effectively cut the
number of turbines that could be installed by almost
two-thirds.[5] The result of the ruling and the fate of
Willatook Wind Farm are yet to be determined, but the
process revealed an urgent need for clearer, risk-based
guidance on bird and bat policies in Victoria.


2023 saw a range of other biodiversity-related
challenges for the wind industry, including the ultimate
approval for the Robbins Island Wind Farm in Tasmania,
after an initial Tasmanian EPA recommendation that the
wind farm could not operate for five months of the year.

Tailwinds for offshore

In mid 2022, the Federal Government announced a
process to identify six priority areas in Australia for
offshore wind, and the first of those – the Gippsland
offshore wind area in the Bass Strait between Victoria
and Tasmania – was announced at the end of the year.
In 2023, four more of those areas were announced for
consultation: Hunter, NSW (now formally declared); the
Southern Ocean area, Vic and SA; Illawarra, NSW; and
Bass Strait off Northern Tasmania.

The sixth and final offshore wind area was announced
in mid-February 2024 in the Indian Ocean off the
Bunbury coastal waters in Western Australia. These
announcements represent significant progress for
the offshore wind industry in Australia, and there is a
definite sense of momentum going into 2024.

For the Gippsland offshore wind area, there were 37
feasibility licence applications, across 20 different
developers, suggesting interest levels are high. At
the time of writing, the Federal government had
awarded provisional Feasibility Licences to six
projects, which could generate 12 GW of electricity,

Establishing the Australian
Offshore Wind Taskforce

In late 2023 the Clean Energy Council established
the Australian Offshore Wind Taskforce to
coordinate State and Federal Governments with
offshore wind developers to explore opportunities
for maximising the economic and environmental
benefits of offshore wind in Australia. The
Taskforce will also facilitate coordination with the
broader industry, with the Clean Energy Council
as Chair.

and is also considering if an additional six projects
could resolve overlapping constraints to resubmit for
further consideration.

The declaration of areas is of course only the first step
in what will likely be a lengthy process to get projects
built, but it is a sign the industry has the foundations to
grow in the months and years to come. According to


3 [Warwick Today, https://warwicktoday.com.au/news/2024-01-16/acciona-energia-reflects-on-a-big-2023/](https://warwicktoday.com.au/news/2024-01-16/acciona-energia-reflects-on-a-big-2023/)

[4 G Parkinson, RenewEconomy, https://reneweconomy.com.au/wind-farms-set-new-output-record-in-australias-main-grid-for-first-time-in-2023/](https://reneweconomy.com.au/wind-farms-set-new-output-record-in-australias-main-grid-for-first-time-in-2023/)

[5 A Macdonald-Smith, Australian Financial Review, https://www.afr.com/companies/energy/brolga-and-bat-ruling-a-death-knell-for-victorian-wind-farm-20230801-p5dt2l](https://www.afr.com/companies/energy/brolga-and-bat-ruling-a-death-knell-for-victorian-wind-farm-20230801-p5dt2l)


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Wind power generation in 2023

33.9%


of total clean energy
generated in Australia
in 2023

(2022: 35.6%)

5 largest wind farms in Australia
by capacity (MW)


13.4%


of total Australian
electricity generated
in 2023

(2022: 12.8%)

Stockyard Hill, VIC

Goldwind Australia
Operational: 2022

Coopers Gap, QLD

Tilt Renewables
Operational: 2021

Macarthur, VIC

AGL
Operational: 2012

Dundonnell, VIC

Tilt Renewables
Operational: 2021

Moorabool, VIC

Goldwind Australia
Operational: 2022


531.93
MW

453
MW

420
MW

336
MW

312
MW


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Energise Renewables, since October 2022, almost 102 GW
of offshore wind has been announced in Australia”.[6] While
due to licencing limitations, overlap constraints and financing
it is expected that not all of these projects will eventuate, this
number does highlight the significant level of investor interest
in the Australian offshore wind market and the world class
offshore wind resources we have in our waters.

Wind farms under construction
or committed at end of 2023


In late 2023, PwC reported that based on the size of announced
offshore wind areas in Australia, the country’s GDP could be $40
billion higher between 2027 and 2040, and up to 19,000 jobs
could be supported in peak of construction.[7]


Commitment yearProject Lead operator-owner State Location Installed
Capacity
(MW)

2022 MacIntyre Wind Farm Acciona QLD Karara 923

2022 Golden Plains Wind Farm Stage 1 WestWind Energy & TagEnergy VIC Rokewood 756

2022 Clarke Creek Wind Farm Stage 1 Squadron Energy QLD Clarke Creek 450

2021 Rye Park Wind Farm Tilt Renewables NSW Rye Park 396

2022 Diamondy Wind Farm (Wambo) Stage 1 Stanwell and Cubico Sustainable QLD Diamondy 252
Investments

2020 Ryan Corner Wind Farm Global Power Generation VIC Port Fairy 218

2022 Goyder South Wind Farm Stage 1A Neoen Australia SA Burra 209

2022 Goyder South Wind Farm Stage 1B Neoen Australia SA Burra 203

2019 Mortlake South Wind Farm Acciona VIC Kolora 157.5

2022 Flyers Creek Wind Farm Iberdrola Australia NSW Springside 145

2020 Hawkesdale Wind Farm Global Power Generation VIC Hawkesdale 96.6

2022 Flatrocks Wind Farm Stage 1 Enel Green Power WA Kojonup 76

2021 Crookwell 3 wind farm Global Power Generation NSW Goulburn 58

2023 Kathleen Valley Hybrid Project–Wind Zenith Energy WA Sir Samuel 30

2023 Bellevue Gold Hybrid Power Station – Wind Zenith Energy WA Leinster 24

2023 Northern Star Resources Jundee Gold Mine–Wind Zenith Energy WA Wiluna 24

[6 Energise Renewables, https://energise-renewables.com/location/australia/](https://energise-renewables.com/location/australia/)

[7 PWC, https://www.pwc.com.au/energy-transition/australias-pathway-to-energy-transition-is-blowing-in-the-wind.html](https://www.pwc.com.au/energy-transition/australias-pathway-to-energy-transition-is-blowing-in-the-wind.html)


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Annual installed wind capacity
in Australia (MW)

2000


1500

1000

500

0

2019 2020 2021 2022 2023

846.7 1090 1745.5 1413.8 942.2


Percentage of Australia’s wind
generation by state

TAS QLD WA NSW SA VIC

6% 8.4% 10.5% 18.4% 20.4% 36.2%


-----

Worker on site at
Golden Plains Wind Farm
Rokewood, VIC
Wadawurrung and Gulidjan Country
(TagEnergy)


CASE STUDY
Golden Plains Wind Farm East –
under construction


The Golden Plains Wind Farm, located 60km northwest
of Geelong in Victoria, is a significant clean energy
project that, when completed, will be Australia’s largest
wind farm, hosting 215 turbines with a combined installed
capacity of 1.3 GW. It will power 765,000 homes,
preventing more than 4.5 million tonnes of carbon
dioxide being emitted into the atmosphere each year,
equivalent to three per cent of Victoria’s total greenhouse
gas emissions.

The project is being delivered in two stages: east and
west. Golden Plains Wind Farm East, which will house
122 turbines – is owned by TagEnergy (85 per cent) and
Ingka Group (15 per cent) and commenced construction
in late 2022. Components have been arriving at the site
since October 2023, and green energy production is
expected to commence in August 2024. The second
phase, Golden Plains Wind Farm West, is being prepared
for Financial Close by TagEnergy and WestWind Energy,
and is expected to commence construction in 2024.


It is estimated that 700 jobs will be created during
construction, with 70 ongoing operational jobs expected
to remain once construction is complete. There is a
dedicated Community Engagement Manager in place
for the project, and a range of community benefits
are being delivered, including local jobs, contracting
opportunities and increased economic activity. The wind
farm also provides sponsorships, community grants, and
a community energy program which includes free home
energy audits, in addition to neighbour benefits and
landscaping programs.


-----

Thank you

GE Vernova

The Clean Energy Council would like to thank
Green Energy Markets, the Business Renewables Genex Power
Centre Australia and Bioenergy Australia for their Gentari
contributions to this year’s Clean Energy Australia, Goldwind
and the following members and industry stakeholders
for providing photographs: Hydro Tasmania

Neoen

Acciona

Pollination Group

ACEN Australia

RES

BayWa r.e.

Solahart

Beon Energy Solutions

Squadron Energy

EDL Energy

Tilt Renewables

Enel Green Power

WestWind Energy

Fluence

Projects are classified as having reached construction
commitment based on the date that the commitment is
announced publicly.

Clean Energy Australia 2024
© 2024 by Clean Energy Council is licensed under
CC BY 4.0. To view a copy of this license, visit
http://creativecommons.org/licenses/by/4.0/

Murra Warra II Wind Farm
Murra Warra, VIC
Jardwadjali Country Printed on Wurundjeri Country by Indigi-print on


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Level 20, 180 Lonsdale Street
Melbourne VIC Australia 3000

+61 3 9929 4100
info@cleanenergycouncil.org.au

cleanenergycouncil.org.au

Dulacca Wind Farm
Western Downs, QLD
Barunggam Country


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