Budget lacks energy for big renewable project reforms
Australia’s growing rollout of solar panels, batteries and electric cars will be governed by a new regulator under a multimillion-dollar budget commitment welcomed by investment and climate groups.
The change will come in addition to support for biofuel production, faster environmental approvals and a solar panel recycling trial.
But some organizations have said the federal budget is a missed opportunity for much-needed renewable energy reforms and Australians are struggling with rising fuel and electricity prices.
The budget, released Tuesday night, announced funding for a National Technical Regulator to coordinate consumer energy sources such as rooftop solar panels, home batteries and electric vehicles.
Established under the Clean Energy Regulator, the body will set technical requirements for consumers to connect their equipment to the national electricity grid and could help save $7 billion in system costs by 2050, according to government estimates.
Race for 2030 CEO Dr Bill Lilley said Australian households had installed more than 4.3 million solar systems and hundreds of thousands of home batteries and the regulator could help them optimize these investments.
“This is an important and welcome recognition of the role households play in shaping the grid and the increasing complexity of coordinating them,” he said.
“Whether it is integrating solar power and batteries, managing energy use through home systems, or charging and optimizing electric vehicles, people need technologies that work together simply and reliably.”
Other budget energy commitments included $163.8 million to accelerate environmental approvals, $24.7 million to fund a solar panel recycling trial announced in April and $4 million to develop a green fuel policy for the shipping industry.
While the measures were welcome, the budget lacked major changes that could accelerate Australia’s transition to renewable energy, such as a gas export tax or changes to the electrification of heavy transport, according to Blair Palese, founder of the Climate Equity Forum.
“For a world in transition, this budget sends a message that Australia is still stuck in the past,” he said.
“He missed an opportunity to send a strong signal to clean energy investors that Australia is increasing its clean energy commitments and paving the way for investment in renewable energy projects, jobs and green industrial capacity.”
Solar Citizens CEO Heidi Lee Douglas said a campaign for tax incentives to help homeowners invest in technology went unanswered, even though it could reduce inequality for renters.
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