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The Australian Renewable Energy Race: Which States Are Winning Or Losing?

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The Australian Renewable Energy Race: Which States Are Winning Or Losing? THE AUSTRALIAN RENEWABLE ENERGY RACE: WHICH STATES ARE WINNING OR LOSING? The Climate Council is an independent, crowd-funded organisation providing quality information on climate change to the Australian public. CLIMatECOUNCIL.ORG.AU Published by the Climate Council of Australia Limited ISBN: 978-0-9941866-7-6 (print) 978-0-9941866-6-9 (web) © Climate Council of Australia Ltd 2014 This work is copyright the Climate Council of Australia Ltd. All material contained in this work is copyright the Climate Council of Australia Ltd except where a third party source is indicated. Climate Council of Australia Ltd copyright material is licensed under the Creative Commons Attribution 3.0 Australia License. To view a copy of this license visit http://creativecommons.org.au You are free to copy, communicate and adapt the Climate Council of Australia Ltd copyright material so long as you attribute the Climate Council of Australia Ltd and the authors in the following manner: The Australian Renewable Energy Race: Which States Are Winning or Losing? by The Climate Council of Australia Permission to use third party copyright content in this publication can be sought from the relevant third party copyright owner/s. This report is printed on 100% recycled paper. Key findings 1. Australia’s states and territories 2. South Australia is striding have an important leadership forward leading the Australian role to play in tackling climate states on renewable energy. change and growing Australia’s › Due to the policy environment, renewable energy industry. South Australia is the most › In the US, state-based actions desirable market in Australia for have been highly effective. investment. Since 2003, there The US is second in the world has been $5.5 billion invested for installed renewable energy in renewable energy in South capacity due to the majority of US Australia, with nearly half states implementing targets and occurring in regional areas. incentives for renewable energy. › South Australia sources over 36% › In Australia, the states have of its electricity from renewable historically led the way on sources and ¼ of SA homes have emissions and renewable energy solar PV panels. South Australia policy, influencing national has installed more large-scale action. In 2003, New South renewable capacity since 2001 Wales introduced the world’s first than any other state. mandatory emissions trading › With effective renewable energy scheme. In 2004 and 2006, South policies South Australia moved Australia and Victoria introduced from having little renewable state based renewable energy energy a decade ago to installing targets in response to a low 2% the most renewable energy since federal target. 2001 on a total and per capita › With the Federal government basis. Having already met its 2020 seeking to weaken the Renewable renewable energy target of 33%, Energy Target and having South Australia has now set a 50% abolished carbon pricing, 2025 target. Australian states and territories › The ACT is also punching above have an opportunity to provide its weight with effective emissions stable investment environments reduction targets and a target of for renewable energy and revitalise 90% renewable energy by 2020. energy efficiency initiatives. › Other than South Australia, no other Australian state has a current target to increase renewable energy. CLIMatECOUNCIL.ORG.AU Page iii THE AUSTRALIAN RENEWABLE ENERGY RACE: WHICH STATES ARE WINNING OR LOSING? 3. Victoria and NSW have 4. Australia has substantial moved from leaders to opportunities for renewable laggards in Australia’s energy. A lack of clear federal renewable energy race. policy has led to a drop in renewable energy investment. › In the past NSW had been a leader introducing the first emissions › Australia is the sunniest country in trading scheme, and Victoria was the world and one of the windiest. an early implementer of energy Australia’s potential for renewable efficiency measures. energy generation is 500 times greater than current power › Neither state now has targets generation capacity. to reduce emissions or increase renewable energy. › Twenty one thousand Australians are already employed in the › Victoria has excellent wind and solar renewable energy industry and this resources, however, the restrictive could increase to 32,000 in 15 years policy environment makes it the least with a strong and consistent policy favourable investment environment environment. of any Australian state for renewable energy. Victoria has moved to › The Federal government is seeking actively discourage renewable to weaken the Renewable Energy energy, so, in contrast to South Target. Consequently investment Australia, investment in renewable in renewable energy in 2014 has energy has dried up. Victoria’s dropped by 70 percent compared restrictive policy environment has with the previous year. cost the state an estimated $4 billion in lost investment and 3,000 jobs. › Despite having 57% of the population Victoria and NSW only have 40% of renewable energy jobs. › Victoria’s electricity comprises only 12% of Australia’s new renewable energy capacity and NSW 7%. NSW is last among the states for new per capita investment in renewable energy. › The recent NSW Government Renewable Energy Action Plan includes 24 actions and 3 goals designed to encourage renewable energy in NSW. This may indicate a welcome shift in NSW’s approach. Page iv CLIMatECOUNCIL.ORG.AU Contents Key findings ....................................................................................................... iii Contents .................................................................................................................1 Introduction ........................................................................................................ 2 The importance of sub-national action: an international perspective 2 Australia’s renewable energy potential 3 Renewable energy benefits 4 Policies and Targets: How do the states and territories compare? ....... 7 Emissions 7 Emissions reduction targets 8 Renewable energy 8 Renewable energy targets 12 State and territory snapshots ........................................................................ 15 South Australia 15 Victoria 18 Queensland 23 Western Australia 26 New South Wales 28 Tasmania 31 Australian Capital Territory (ACT) 34 Northern Territory 37 Australia Now: An opportunity for states and territories to take the lead ...................................................................................................39 Abbreviations and acronyms 41 References ..........................................................................................................42 Image credits ....................................................................................................47 CLIMatECOUNCIL.ORG.AU Page 1 THE AUSTRALIAN RENEWABLE ENERGY RACE: WHICH STATES ARE WINNING OR LOSING? Introduction This year, much of the focus on Previous state targets have been removed Australia’s climate change and renewable after federal nationwide carbon pricing and energy policy has been directed at the energy efficiency measures were legislated. federal level – given the review of the With these federal measures now abolished, national Renewable Energy Target (RET), industry, commerce and households in repeal of the Carbon Pricing Mechanism, most states are left with no measures and release of a new Energy Green Paper. to reduce emissions or improve energy However, while national action is vital, efficiency to lower costs. The efficacy of the roles and opportunities for Australian the Emissions Reduction Fund is yet to be states and territories to contribute to established. Furthermore, uncertainty in the reducing greenhouse gas emissions and RET has caused investment in renewable expanding renewable energy should not energy to drop by as much as 70 percent be underestimated. over the past year. Yet, South Australia and the ACT have set ambitious targets Internationally, the energy sector to cut emissions and increase renewable accounts for the largest proportion of energy uptake. Positive policy settings in greenhouse gas emissions, which are the South Australia and the ACT will help these main drivers of climate change. Tackling regions benefit from the global transition to climate change requires large scale cleaner energy, leaving the other states and changes in the electricity sector and a territory lagging behind. Experience from tripling of low-carbon energy by 2050. overseas also illustrates how it is possible Australia’s electricity is largely generated for state-based actions to stimulate highly from coal. Our fleet is ageing and effective policy measures. inefficient, which means that most of Australia’s coal stations are much The importance of more emissions intensive than other countries, including the USA and China. sub-national action: Within the decade, around half of an international Australia’s coal fuelled generation fleet perspective will be over 40 years old. Australia will need to plan and install new electricity Worldwide, state-based actions often lead generation to replace ageing generators. to the development of national policies and can be highly effective measures in their The Climate Council’s recent report own right (Box 1). Australia’s Electricity Sector: Ageing, Inefficient and Unprepared found that ‘Sub-national’ actions taken by state and rapid deployment of renewable power, local governments often influence the like wind and solar, is one of the most development
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