Media release – 25 October 2022
The Smart Energy Council, Clean Energy Investor Group and Climate Action Network Australia have united to urge Federal and State Energy Ministers to establish a Renewable Energy Storage Acceleration Scheme to unleash investment in large-scale renewable energy storage.
“We can’t get to 82% renewables by 2030 unless we unleash renewable energy storage,” said John Grimes, Chief Executive of the Smart Energy Council.
“When it comes to renewable energy storage, we need everything, everywhere, all at once.”
“We need everything from batteries on wheels in electric vehicles to household battery systems to unlocking massive investment in large-scale energy storage projects through a Renewable Energy Storage Acceleration Scheme.”
Under a national Renewable Energy Storage Acceleration Scheme, the Australian Government, in partnership with State Governments, would undertake a series of tenders for large-scale renewable energy storage projects to meet forecast shortfalls in dispatchable generation and storage.
Proponents would bid a floor price for the project’s net revenue over a period of time, enabling them to obtain low-cost financing generally not available today due to currently missing and perceived uncertainty in storage revenue streams.
On most occasions, the storage project would have net revenue far above the floor resulting in no payments by Governments to the storage project.
The scheme would also contain claw back provisions whereby the storage projects would make return payments to government when their net revenues are high.
“The Renewable Energy Storage Acceleration Scheme delivers fast, proven and cost-effective renewable energy storage and provides exactly the right signals to investors,” said Simon Corbell, Chair of the Clean Energy Investor Group.
“The scheme also retains strong incentives for owners of storage assets to pursue other revenue streams, thereby reducing risk to consumers and taxpayers.” Mr Corbell said.
“Renewable energy storage is critical to climate action”, said Glen Klatovsky, CEO of Climate Action Network Australia.
“A Renewable Energy Storage Acceleration Scheme provides governments with a genuine way to make sure energy storage is operating and ready to go as our old, polluting coal-fired power stations retire.”
“We urge Energy Ministers to put in place a Renewable Energy Storage Acceleration Scheme before the end of the year.”
A briefing note on the Renewable Energy Storage Acceleration Scheme can be found here.
The Smart Energy Council is a peak independent body for Australia’s renewable energy and renewable energy storage industry.
The Clean Energy Investor Group represents domestic and global renewable energy developers and investors with more than 11 gigawatts of installed renewables capacity across more than 70 power stations and a combined portfolio value of around $24 billion.
Climate Action Network Australia is a network of community organisations committed to action on climate change.
For more information and interviews, including with large-scale renewable energy storage companies, contact Connor Woulfe, Smart Energy Council, on 0499 408 291.