Dear Minister,
Congratulations and welcome (notwithstanding a few formalities) to the role of Climate Change & Energy Minister.
Over 30,000 people in the clean energy industry arrived at work on Monday relieved that the climate wars are over, excited to have a new Federal Government that is unequivocally committed to renewable energy and re-energised to crack on and help make Australia a clean energy superpower. I hope you’re well rested, because there’s a lot to do, and not a minute to waste.
Mind, you do not have to do everything. State and territory governments responded to the policy vacuum and stepped up. You’ve already said this, but the best place to start will be sitting down with your state and territory colleagues. They are, without exception and irrespective of political allegiances, determined and focused on actively managing the transition to clean energy.
They have been missing a collaborative leader with a common ambition to explore shared challenges, identify priorities and facilitate open dialogue and collective effort on the things that matter. This must again become the modus operandi for energy ministers in these times of rapid change and increasing complexity in the energy system.
Don’t underestimate the benefits and importance of a Federal Government that is consistent, predictable and transparent in what it’s doing and going to do. Investors have been spooked by unpredictable policy and market interventions.
While we are at it, you really don’t need to be using taxpayers’ money to build new energy generation. The private sector is keen to invest. You just need to create the right policy and regulatory settings and not make any radical or unpredictable moves, and the capital will flow.
Your 2030 emissions reduction target, with sensible refinements to the Safeguard Mechanism, will be essential to driving economy-wide decarbonisation. The energy sector can and should do the heavy lifting, and there is an enormous pent-up opportunity ready to roll.
After all, you inherit great institutions (your mob created them) in the Australian Renewable Energy Agency and Clean Energy Finance Corporation that are skilled and experienced to drive innovation, overcome challenges, and leveraging our renewable energy advantage to electrify and decarbonise many other sectors. By the way, green hydrogen is the future and what our major energy customers want, so let’s not waste our time on any other colours.
The grid wasn’t designed for a power system dominated by renewable energy. New transmission has been slow, hampered by an out-of-date regulatory test that is finally under review. But there is a clear role for government to underpin transmission projects, as there always has been.
Rewiring the Nation is a great and much-needed policy. Detailed consultation and careful design will be essential to ensure it leverages vast private sector capital, mitigates any cost impacts on energy customers and interacts sensibly with state and territory governments to deliver the new investment faster and cheaper.
Social license for this new transmission investment and renewable energy more broadly is critical. We look forward to partnering with government to ensure industry practices meet community and government expectations, and that planning and regulatory regimes drive good practice and strong community engagement and participation, particularly for First Nations communities.
There is a big reform agenda already in train to modernise the energy market to ensure renewables aren’t discriminated against and get the price signals necessary to ensure we have the right projects and system services online as coal power stations continue to close.
Your oversight and support will be important, particularly to make sure these reforms occur with a sense of urgency while building investment confidence in an already complex energy market. While governance of the energy market isn’t perfect, the Australian Energy Market Commission and Energy Security Board are pushing ahead with these reforms with new levels of consultation and engagement with industry.
As you know, grid connection is the biggest challenge facing utility-scale renewable energy projects. The clean energy industry is collaborating with the Australian Energy Market Operator to develop solutions to make the process clearer, more transparent and predictable. Nothing much for you to do here.
Rooftop solar, household batteries and electric vehicles (it’s great to have a Federal Government that’s backing in EVs) are going to play a massive role in the future, putting power into the hands of customers.
Again, a body of reform to create a smarter grid, leverage this smart technology and ensure customers are empowered is underway. It needs to happen quickly and carefully. The community loved your support for batteries and will be keen to see that program moving. Community- scale batteries can play an important role managing the grid and power prices.
The clean energy industry is facing a skills shortage while presenting an enormous opportunity to create a massive number of new jobs. But this won’t happen by chance, and many of the commitments the Labor Party announced in the run into the election will be important – support for apprentices, reform and investment in training and skills development will all be great for renewable energy as well as helping transition workers in key regions. Some of these skills gaps could be filled from the declining fossil fuel sector with clear direction and support from a transition authority.
The clean energy industry has a vibrant Women in Renewables program to encourage and support more women into the sector. Your partnership (and support from the Minister for Women) with that program will be great.
We will also work closely with the Minister for the Environment on product stewardship and end of life for renewable energy. The technology is ready and businesses are lining up to build recycling facilities to fully process solar panels when they reach their end of life. We just need a ban on sending them to landfill and coordination across the states and territories.
There you have it. We can do this. If we get it right, we put Australia back on the path to becoming a global clean energy superpower and restore our rightful place as a glowing example of a modern and prosperous economy powered by reliable, low-cost, clean energy. Saturday showed the Australian public is with us, so let’s get to it.
Kind regards
Kane Thornton
Chief Executive, Clean Energy Council
