Solar Project Uncertainty and the Renewable Energy Debate
Political Turbulence and Investor Concerns
Political turbulence around the renewable energy debate is making some clean energy investors nervous. Despite reassurances from the federal government, the opposition’s nuclear policy has sown some doubt over whether the renewable industry will continue to have Commonwealth policy support over the next several decades.
Impact on a Solar Manufacturing Business
One Australian solar manufacturing business, Meralli Projects, has already seen an impact. Dr Methuen Morgan, the head of Meralli Projects, said they have already seen an increase in hesitancy from investors who are “concerned about which way a potential future government is going to go.” This has resulted in the indefinite hold of one of their solar projects.
Concerns Raised by Renewable Energy Investors
The article states that Energy Minister Chris Bowen has been approached by renewable energy investors questioning the long-term reliability of the industry. Erwin Jackson, the policy director at the Investor Group on Climate Change (IGCC), also mentioned that the “recent lack of bipartisanship on the least-cost pathway to net zero is causing investors to re-evaluate projects and also potentially put on hold new investment.”
Potential Impact on Labor’s Renewable Energy Targets
Project delays are likely to put the timeline for Labor’s goal of increasing the share of renewables in the electricity grid to 82% by 2030 at risk. The Energy Minister has blamed the Coalition for introducing doubt in the industry.
Coalition’s Stance and Investor Concerns
The Coalition has not released their policy on renewables ahead of the next election, though they have said renewables outside of nuclear would still have some part to play in their plans for Australia’s energy mix. The Opposition Leader and Shadow Energy Minister have criticized the government for focusing too heavily on renewables.
Investors are concerned about the lack of policy stability and clarity, and some have suggested they may put their money overseas instead of investing in Australia if there is no clear policy direction.
