CLEAN ENERGY AUSTRALIA CLEAN ENERGY AUSTRALIA REPORT 2020 AUSTRALIA CLEAN ENERGY REPORT 2020 CONTENTS 4 Introduction 6 2019 snapshot 12 Jobs and investment in renewable energy by state 15 Project tracker 16 Renewable Energy Target a reminder of what good policy looks like 18 Industry outlook: small-scale renewable energy 22 Industry outlook: large-scale renewable energy 24 State policies 26 Australian Capital Territory 28 New South Wales 30 Northern Territory 32 Queensland 34 South Australia 36 Tasmania 38 Victoria 40 Western Australia 42 Employment 44 Renewables for business 48 International update 50 Electricity prices 52 Transmission 54 Energy reliability 56 Technology profiles 58 Battery storage 60 Hydro and pumped hydro 62 Hydrogen 64 Solar: Household and commercial systems up to 100 kW 72 Solar: Medium-scale systems between 100 kW and 5 MW 74 Solar: Large-scale systems larger than 5 MW 78 Wind Cover image: Lake Bonney Battery Energy Storage System, South Australia INTRODUCTION Kane Thornton Chief Executive, Clean Energy Council Whether it was the More than 2.2 GW of new large-scale Despite the industry’s record-breaking achievement of the renewable generation capacity was year, the electricity grid and the lack of Renewable Energy Target, added to the grid in 2019 across 34 a long-term energy policy continue to projects, representing $4.3 billion in be a barrier to further growth for large- a record year for the investment and creating more than scale renewable energy investment. construction of wind and 4000 new jobs. Almost two-thirds of Grid congestion, erratic transmission solar or the emergence this new generation came from loss factors and system strength issues of the hydrogen industry, large-scale solar, while the wind sector caused considerable headaches for by any measure 2019 was had its best ever year in 2019 as 837 project developers in 2019 as the MW of new capacity was installed grid struggled to keep pace with the a remarkable year for transition to renewable energy. While across eight new wind farms. the Australian renewable Australia’s energy regulators are energy industry. Perhaps the year’s biggest story working hard to address these issues, a though is the ongoing exceptional quick resolution is essential to ensuring performance of the rooftop solar that the industry’s momentum can be sector. After breaking records in each restored. These grid issues and the lack of the previous two years, the sector of policy certainty were both major smashed through the 2 GW barrier factors in the slowdown in new projects for the first time in 2019. The 2.2 GW securing financial commitment in 2019. of new capacity added was almost While 2019 wasn’t without its double the record set just two years challenges, the future of renewable ago and the number of systems energy in Australia remains bright. installed was the highest since the There is an enormous pipeline of solar boom of 2012. renewable energy and energy storage projects and strong customer demand The energy storage sector is also for rooftop solar and batteries. These starting to pick up momentum, with will be critical in replacing Australia’s the more than 22,000 small-scale ageing coal-fired power stations, batteries installed in 2019 taking meeting Australia’s climate change Australia’s household storage capacity targets and ensuring affordable and past 1 GWh for the first time. And with reliable power supply. The coming a further 15 utility-scale batteries year therefore promises to be another under construction and several other extraordinary one for renewable projects financially committed at energy in Australia, and I look forward the end of 2019, 2020 promises to to seeing just how much progress we be a breakthrough year for batteries can make towards our goal of Australia in Australia. being powered by clean energy. Image: Crowlands Wind Farm, Victoria 4 ABOUT US The Clean Energy Council We are committed to accelerating is the peak body for the the transformation of Australia’s energy system to one that is smarter renewable energy and and cleaner. energy storage industry in Australia. We represent The Clean Energy Council leads and supports the growth of the clean and work with hundreds energy industry in Australia by: of leading businesses • providing a strong voice for our operating in solar, wind, members hydro, bioenergy, energy • standing up for the industry storage, hydrogen and • developing and driving effective emerging technologies policy and advocacy along with more than • working with industry to continually improve standards 6500 solar and battery and maintain integrity storage installers. • 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 • promoting the clean energy industry. 4 5 2019 SNAPSHOT While 2019 was another Another year of extraordinary growth Market in November. While this was record year for renewables, saw records tumble in 2019 as state only fleeting, it will be an increasingly uncertainty threatens to governments, industry and common occurrence as renewable communities embraced the transition energy penetration increases in the slow momentum. to clean energy. coming years. There were 34 large-scale projects The wind sector had its best ever year completed in 2019, increasing in 2019, with 837 MW of capacity Australia’s large-scale renewable added across eight new wind farms. energy capacity by 2.2 GW For the first time, wind overtook hydro and generating $4.3 billion in as Australia’s leading clean energy investment and more than source, accounting for more than 35 4000 new jobs. per cent of Australia’s renewable energy generation. Renewable energy was responsible for 24 per cent of Australia’s total Records were also broken across the electricity generation in 2019, an board in solar as the large, medium increase of 2.7 percentage points on and rooftop sectors installed more 2018. For a brief period, renewables capacity than ever before. The large- passed the 50 per cent mark of total scale solar sector saw 1416 MW of new generation in the National Electricity capacity added in 2019 across 27 solar 6 24% 4000 2.2 GW of total electricity generation jobs generated by large-scale of new large-scale capacity from renewable sources – clean energy projects in 2019 installed in 2019 a record high farms, while the rooftop solar industry $10.7 billion in 2018 to just Renewable Energy Target (RET) more smashed last year’s record of 1.6 GW $4.5 billion in 2019. than a year ahead of the 2020 to break the 2 GW milestone for the deadline. Australia reached the RET in Some of the challenges currently first time. September 2019 following the affecting the industry can be put down completion of the 148 MW Cattle Hill Hydro power contributed 25.7 per cent to growing pains as transmission Wind Farm, capping off a massive of Australia’s renewable energy investment has failed to keep pace effort by the industry over close generation. This was lower than with the industry’s rapid growth. In to two decades. This significant previous years due to the ongoing 2019, this was most keenly felt in the milestone has transformed renewable impact of the drought in eastern West Murray region of Victoria and energy from one of the most expensive Australia and the massive growth New South Wales, where several wind kinds of energy generation to the experienced by wind and solar. and solar farms were forced to curtail cheapest, on the way delivering tens their output to maintain grid stability. However, despite all the records broken of thousands of jobs to regional If left unresolved, these issues threaten in 2019, ongoing uncertainty threatens areas and tens of billions of dollars to undermine investment confidence to slow the industry’s momentum. The in investment. and severely slow the construction of continued lack of a federal energy Energy was firmly on the agenda at much needed new clean energy policy and transmission and the May 2019 federal election, with capacity. connection challenges resulted in new the two major parties taking up vastly investment commitments falling by The biggest achievement of 2019 was different positions on energy and more than 50 per cent in 2019, from the fulfillment of the Large-scale climate change. The Labor party Image: Hallett Wind Farm, South Australia 6 7 2019 SNAPSHOT CONTINUED presented a strong platform of just the eighth major jurisdiction in the >50% emissions reduction and renewable world to generate 100 per cent of its energy policies, including a 50 per cent energy from renewable sources, while of South Australia’s energy renewable energy target by 2030. In South Australia continues to push came from renewable sources comparison, the Coalition offered little ahead with its renewable transition. in 2019 in the way of renewable energy policy More than 50 per cent of the state’s and its climate policy consisted of a electricity came from renewables in top up of the Abbott-era Emissions 2019 and it is now aiming to source Reduction Fund. 100 per cent of its power from clean energy by 2030. $370m A notable shift in public sentiment occurred towards the end of 2019 as The hydrogen industry made of hydrogen projects backed devasting bushfires swept across much significant progress in 2019, with the under the National Hydrogen of the country. Pressure mounted on COAG Energy Council agreeing in Strategy the government to acknowledge the November to back $370 million of growing impact of climate change and hydrogen projects under the National take meaningful action to reduce Hydrogen Strategy. The states are also Australia’s carbon emissions.