the future is renewable: targets and policies by country · 2019-08-21 · in addition to the 2025...

The FutureIs Renewable:

Targets and PoliciesBy Country

Phillip Riley Research Series

Australia: South Australia, Victoria & New South Wales |

March 2017

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Introduction

ThisPhillipRileyresearchseriesisaninvestigationintotherenewableenergypolicies

ofAustralia,theUnitedStatesandvariousAsiaPacificnations.Thereportslookinto

thecountries’renewableenergypotential,climatechangetargetsandthesuccessof

theirpolicytodate.Eachreportfocusesonthecurrentandfutureuseofrenewable

energyandtakesintoaccountthepolitical,geographicalandeconomicchallenges

uniquetoeachnation.

PhillipRileyisaspecialistrecruitmentandconsultingpracticefocusingonthe

RenewableEnergy&EnergyEfficiencysectors.Weattractandretaintalentacrossa

broadrangeofjobdisciplinesincludingPre-Construction (Sales,ProjectDevelopment,

CorporateFinance),Construction (Construction,Commissioning,Consulting),

Operations(O&M,EnergyInformationSystems)andRetail (CommercialandIndustrial

Solar,EnergyEfficiency).

OurclientsspanthebreadthoftheRenewableEnergygeneration(Wind,Hydro,Solar

PV,SolarThermal,Bioenergy,Wave,Tidal)types,andincludessupportingcompanies

suchasOriginalEquipmentManufacturers(OEMs),EngineerProcureConstruction

(EPCs),Transportation&Logistics,ProjectDevelopment,&ConsultingFirms.In

addition,wearearecruitmentpartnertoTransmission,Distribution&EnergyRetail

companies,andhavedemonstrabletrackrecordacrossthePrivate,Public&Not-For-

ProfitSectors.

ToviewanddownloadallreportsofthisResearchSeries,pleasevisittheResearch

sectionofourwebsiteat http://phillipriley.com.au/featured/research/.

The FutureIs Renewable:

Targets and PoliciesBy CountryAustralia: South Australia,

Victoria & New South Wales | March 2017

Author:

SophieMateria

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Targets and Policies By Country: South Australia, Victoria & New South Wales

Throughearlyinvestmentinrenewableenergy,SouthAustraliahaspositioneditselfas

aleaderintherenewableenergyfield.Thestatedistinguishesitselffromothersas

althoughtherearesignificantreservesoffossilfuelspresent,theirenergymixisnot

dependentoncoal.SouthAustralia’senergygenerationisleadbynaturalgas,whichis

closelyfollowedbywindpower.ThecurrentrenewableenergytargetinSouth

Australiaaimstoincreasethestate'srenewableenergyproductionto50%by2025and

achievenet-zeroemissionsby20501.Thestatehasalsocommittedtoaninvestment

targetof$10billioninlowcarbongenerationby20251.Thistransitiontocleanenergy

hasalreadybeguntotakeplacewiththeclosureofanumbercoal-firedpowerplants

inPortAugusta.Asmentionedinthepreviousreport,statewideblackoutshave

occurredinSouthAustraliaresultingfromtoomanyintermittentsystemscoupledwith

aseverestormandsubsequently,aheatwave.Thishasresultedinsomescepticism

towardsotherstatesinAustraliatransitioningtowardrenewableenergy.Despitethis

scepticism,theSouthAustralianGovernmenthasimplementedanumberofprograms

andplanstopromoteinvestmentintherenewableenergysector.Althoughrecently

SouthAustraliahasreceivedcriticism,hopefullywiththecontinueddevelopmentand

researchintorenewableenergy,thestateisabletoovercometheseproblemsand

achievetheirlong-termtargets.

SouthAustralia’scurrentenergymixconsistsofalargeproportionofrenewable

energy,especiallywhencomparedtootherAustralianstates.Therecentdeclineinthe

generationoffossilfuelshaspositionedSouthAustraliaastherenewableenergy

1http://www.renewablessa.sa.gov.au/

South Australia

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Australia: South Australia

leaderwithinAustralia.Ofthefossilfuelsthatarecurrentlybeinggenerated,natural

gasandcoalcontributethemost,respectively.Althoughalargerproportionofnatural

gasisgenerated,SouthAustraliahasplacedanemphasisonreducingtheirgeneration

ofcoal.Thisisduetoanumberofreasons,namely,naturalgasisbettercoupledwith

moreintermittentsystems(suchaswindandsolarpower– whichSouthAustraliais

highlydependenton)anditproduceslesscarbondioxideemissionsperjoulethan

comparedtocoal.

Inordertosignificantlyreducetheirgenerationofcoal,SouthAustraliaannouncedthe

permanentclosureoftheonlytwocoal-firedpowerplantswithinthestate.Locatedin

PortAugusta,thecoal-firedpowerplantsproducedover50%ofthestate’scarbon

dioxideemissionsfromelectricitygeneration2.Asofearly2016,neitheroftheplants

areinoperation,however,areyettobereplaced.Thishasleftanemptymarketand

lossofjobsinPortAugusta.Therehavebeenrecentcampaignstoreplacetheplants

withasolarthermalpowerstation.Thiswouldnotonlycreatemanyjobsintheregion

butalsoreplacethosejobslostwithinthecoalindustry.Thesolarthermalprojectis

currentlyinplanning,however,willbedifficulttobuildwithoutappropriatefunding

fromthegovernment3.

InordertosupportrenewableenergyinvestmentandgrowthwithinSouthAustralia,

RenewablesSA4 wasdevelopedbythestategovernment.RenewablesSAisresponsible

foranumberofdocumentsoutlininghowSouthAustraliawilltransitiontowardsclean

energy.In2011,RenewablesSAdevelopedaRenewableEnergyPlanforSouth

Australia5.Theplanoutlinesanumberofinitiativestopromoterenewableenergy

growth,includinggrantstosupportrenewableenergyresearch.Theplanalsolooks

2 https://www.theclimategroup.org/sites/default/files/archive/files/Greenhouse-Indicator-Generation-Report-2009.pdf3 http://www.abc.net.au/news/2016-09-12/port-augusta-solar-project-needs-100-million-to-shine/78372924 http://www.renewablessa.sa.gov.au/5RenewablesSA, A Renewable Energy Plan for South Australia, 2011, http://www.renewablessa.sa.gov.au/files/111019-renewable-energy-plan-for-south-australia.pdf

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intodevelopinglegislationwhichwouldprovideaccessforrenewableinvestorsto

governmentownedland.Thisbillhassincebeenpassedthroughboththeupperand

lowerhouses6.

WhentheSouthAustralianRenewableEnergyPlanwasdeveloped,thestatetargetat

thetimewastoincreaserenewableenergyproductionto33%by20207.Duringthis

period,therewasalsoanationalrenewableenergytargetinplace.Thistargetwasto

increaseAustralia’srenewableenergyproductionto20%by20208.Throughthe

developmentoftheRenewableEnergyPlan,allowingearlyinvestmentinrenewable

energytechnologies,SouthAustraliaachievedboththesetargetsoversevenyears

aheadofschedule.Followingtheearlyachievementofthe2020statetarget,anew

targetfor2025wassetin2014.Thenewstatetargetaimstoincreaserenewable

energyproductionto50%by2025.

Alongsidetheaforementioned2025statetarget,SouthAustraliaalsosawthe

implementationofaninvestmenttarget.Setin2013,thetargetaimsforSouth

Australiatoinvest$10billioninlowcarbongenerationby20259.Thisinvestment

targetisuniquetoSouthAustraliaanditplacesthefocusonincreasingrenewable

energywhilstalsoreducingemissions,thelatterofwhichissometimesoverlookedby

otherstates.Inordertohelpachieveboth2025targets,RenewablesSAdevelopeda

LowCarbonInvestmentPlanforSouthAustralia10.Theplanconsistsoffourkey

strategiestopromotelowcarbongenerationinvestment.Astrategyincludedunder

thisplanistheBio-energyRoadmapforSouthAustralia11.Asbio-energyisnotawell-6http://www.austlii.edu.au/au/legis/sa/bill/plmaceab2014618/7RenewablesSA, Projected Carbon Intensity for South Australian Renewable Energy Target in 2020, 2010, http://www.renewablessa.sa.gov.au/files/1j1869-final-report-projected-carbon-intensity-for-south-australian-renewable-energy-target-in-2020-feb2010.pdf8 Clean Energy Regulator, History of the Scheme, 2016, http://www.cleanenergyregulator.gov.au/RET/About-the-Renewable-Energy-Target/History-of-the-scheme 9 RenewablesSA, Proposed Economic Targets for Low Emission Investment in South Australia, 2013, http://www.renewablessa.sa.gov.au/files/130930-final2-report-for-dmitre.pdf10 RenewablesSA, A Low Carbon Investment Plan for South Australia, 2015, http://www.renewablessa.sa.gov.au/files/93815-dsd-low-carbon-investment-plan-for-sa-final-web-copy.pdf11 Jacobs/RenewablesSA, A Bio-energy Roadmap for South Australia, 2015, http://www.renewablessa.sa.gov.au/files/a-bioenergy-roadmap-for-south-australia--report--version-1-appendix-a-removed.pdf


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developedrenewableenergywithinthestate,thisroadmapintendsonlayingthe

foundationfornewbio-energyprojects.Anotherstrategyincludedintheplanis

providingsupportforAdelaide’sfirsthybrid-electriccarshareinitiative.This

incorporatessolarphotovoltaicandbatterystoragewithinAdelaide'scentralbusiness

district.ThroughsupportingGoGet,Australia’slargestcarsharecompany,thisproject

aimstoprovideindividualswithexperiencedrivinganelectricvehicleandinturn,

increasingawarenessandacceptanceofelectricvehicles.SouthAustraliaisontrendto

achieveboth2025targets.Asof2015-16,SouthAustraliahadinvested$7.1billionin

lowcarboninvestmentandapproximately43%ofelectricityproducedwithinthestate

wasfromrenewableenergysources12.

Despitebeingontracktoachievingboth2025targets,SouthAustraliarecently

receivedcriticismfollowingtwoinstancesofstatewideblackouts.Theblackoutin

2016wascausedasaresultofastormcausingdamagetoelectricitytransmission

infrastructure.Thisresultedinastatewide(excludingKangarooIsland)blackout.The

secondblackoutoccurredin2017andresultedfromanextendedheatwavealongside

issueswithtransmissionlines(causingcertaingeneratorsnotabletobeturnedon).

Thesefactorsresultedinthedemandforelectricityexceedinggeneration.Federal

MinisterforEnergy,JoshFrydenbergstatedthatthelackofpowerwascausedbywind

poweronlyproviding2.5%ofSouthAustralia’senergyneeds.Hethencontinuedby

sayingthatthisamountisalotlessthanexpected,andthatthisuncertaintyisoneof

theproblemsassociatedwithintermittentsystems13.Inthesetwoinstances,South

Australiahasexperiencedsomedifficultiesinthedeliveryofenergygeneratedfrom

renewablesources.However,hopefully,withcontinueddevelopmentandresearch

intorenewableenergystorage,theintermittencyofthesystemsisabletobereduced.

12 The Government of South Australia, South Australia’s Renewable Energy Future, 2015, http://www.statedevelopment.sa.gov.au/upload/energy/facts/Renewable%20and%20future%20electricity%20generation_DSD_11216.pdf?t=148124130392513http://www.abc.net.au/news/2017-02-08/sa-heatwave-forces-rolling-blackouts-angering-government/8252512


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Thiswouldallowfortheseissuestobeovercome,andminimisethelikelihoodof

blackoutsinSouthAustraliabecomingarecurringsituation.

Inadditiontothe2025targetsset,SouthAustraliahasalsodevelopeda2050target.

Thislong-termtargetaimsforthestatetoreachnetzeroemissionsby205014.This

2050isinlinewithbothVictoria’sandNewSouthWales’2050targets.TheSouth

AustralianStateGovernmentalsointendstoestablishAdelaideastheworld'sfirst

carbonneutralcity.TheStateGovernmentaimstodothisthroughenhancinglow-

carbonjobsandindustriesandreducingemissionsfromwaste15.SouthAustralia

appearstobeontracktoachievetheircleanenergytargetsandhavepositioned

themselvesasarenewableenergyleaderwithinAustralia.Thestatehasachievedthis

throughearlyandcontinuousinvestmentintocleanenergytechnologies.Although

SouthAustraliahashadsomerecentdifficultiesinmaintainingpowergeneration,

hopefully,thiswillnotcontinueintothefuture.IfSouthAustraliacontinues

development,researchandinvestmentintorenewableenergytechnology,thestate

cancontinuetoactasarenewableenergyleaderwithinAustraliaandtherestofthe

world.

14The Government of South Australia, Target Zero, 2015, http://www.climatechange.sa.gov.au/target-zero/15 The Government of South Australia, Carbon Neutral Adelaide, 2016, http://www.climatechange.sa.gov.au/files/sharedassets/climate_change/carbon-neutral-action-plan.pdf


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Targets and Policies By Country:South Australia, Victoria and New South Wales

Victoriacurrentlyhasanambitiousrenewableenergytargetset,helpingtoreposition

themasacleanenergystate.Currently,setundertheClimateChangeAct2016,

Victoriaaimstoincreasetheirrenewableenergygenerationto25%by2020and40%

by2025.Victoria’slong-termgoalunderthislegislationistohavenetzeroemissions

by205016.Asof2015,renewableenergyaccountedforapproximately14%of

Victoria’selectricitygeneration17.BothVictoriaalongwiththerestofAustraliahave

hadalonghistoryrelyingoncoaltoformthemajorityoftheirenergymix.Asaresult,

increasingtherelianceonrenewablesourcescanonlybeachievedbyalarge

restructuringoftheenergymix– alteringVictoria’sbaseloadsupply.Moreover,the

prospectofjoblossresultingfromtheclosureofcoal-firedpowerstationshasalso

raisedpublicconcern.Despitetheseconcerns,Victoriacurrentlyhasanumberof

newlyimplementedstrategiesandframeworksinplaceinordertohelpincreasetheir

renewableenergygeneration.TheVictorianStateGovernmenthasalsoimplemented

amorelong-termdocument,theClimateChangeFramework,whichlooksatachieving

Victoria’s2050target.AlthoughVictoriahassetambitioustargets,thechangesinthe

sectorareyettobereflectedinthestate’senergymix.

CoalconstitutesamajorityoftheenergygeneratedwithinVictoriaandhasalong

historybeingthedominantenergysource.Althoughthegenerationofcoalwithin

Victoriahasdecreasedslightlyinrecentyears,thereisstillalargedependencyonthe

fossilfuel.Currently,itgeneratesapproximately85%ofVictoria’selectricity

16http://www.legislation.vic.gov.au/domino/Web_Notes/LDMS/PubPDocs.nsf/ee665e366dcb6cb0ca256da400837f6b/7BD94EEFDEE4690DCA258073007E0980/$FILE/581271bi1.pdf17Victoria State Government: Environment, Land, Water and Planning, Victoria’s Climate Change Framework, http://www.climatechange.vic.gov.au/__data/assets/pdf_file/0005/369032/DELWP0039_ClimateChange_Framework_v14.pdf

Victoria

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consumption,withwindpowerbeingthenextmajorcontributor(6%)17.Assuchalarge

andlong-termdependencyhasbeenplacedoncoal,thishasresultedinsome

challengesinincreasingtheproportionofgenerationfromrenewablesources.Ascoal

poweredstationsrequirealongerperiodoftimetobegingeneratingelectricity,after

previouslybeingturnedoff(whencomparedtonaturalgas)theyarenoteasilypaired

withintermittentsystemssuchaswindandsolarpower.Moreover,switchingto

renewableenergygenerationmusteventuallyresultintheclosureofthesecoal-fired

powerplants.ThereforeinorderforVictoriatosignificantlyincreasetheirrenewable

energygenerationandcapacity,alargerestructuringoftheenergysystemmustoccur.

ConcernshavebeenraisedinVictoriarelatedtothejoblossthatwillfollowfromthe

eventualclosureofthecoal-firedpowerplants.Anexampleofthistookplace

followingtheannouncementoftheclosureoftheHazelwoodPowerStation.The

powerstation,whichislocatedintheLatrobeValleyofVictoria,suppliesupto25%of

Victoria’sbaseloadelectricitysupply18.Althoughtheclosurewillresultinhundredsof

workerslosingtheirjobs,theHazelwoodPowerPlantwasidentifiedin2005asoneof

themostemissions-intensivecoalpowerplantswithintheOECD19.TheVictorian

Governmentwasforcedtofindabalancebetweentheemissionsproducedbythe

plant,andthejobsthatwouldbelostasaresultofitsclosure.Inthisinstance,the

choicewaseasiertomakeastheHazelwoodPowerStationwasapproachingtheend

ofitsoperationallife.TheVictoriangovernmenthasacknowledgedtheimpactthatthe

lossofjobswillhaveonthisregion.AplantohelpthetransitionoftheLatrobeValley

communityhasbeenincludedaspartoftheClimateChangeFrameworkdevelopedin

2016.

Victoria’sRenewableEnergyRoadmap20 wasreleasedin2015andoutlinesinitiatives

18http://www.power-technology.com/projects/hazelwood/19http://www.wwf.org.au/?2320/Hazelwood-tops-international-list-of-dirty-power-stations#gs.t4eZUh420 Victoria State Government: Department of Environment, Land, Water and Planning, Victoria’s Renewable Energy Roadmap, 2015, http://delwp.vic.gov.au/energy/renewable-energy/?a=351525

Australia: Victoria

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aimedatacceleratingthedevelopmentofrenewableenergyinVictoria.TheRoadmap

achievesthisbyidentifyingkeyareasinwhichchangescanbemade.Forexample,the

Roadmapidentifiesandaddressesthecurrentbarriersbeingfacedbydistributed

generation(locallygeneratedelectricitythatisfedbackintothegrid,e.g.solarpanels

onaresidentialroof)andstorage.Itisacknowledgedintheroadmapthatcurrentlythe

processthatconnectsdistributedgenerationtothegridisnottransparent,consistent

norcustomerfriendly.Thecurrentframeworkpreventstheinstallationofdistributed

generationprojectswiththoseinruralareas,low-incomehouseholdsandrental

tenants.Oneofthewaysthegovernmentintendstoimproveconnectionisby

reviewingthecurrenttechnicalconstraintspreventingtheconnectionofdistributed

energygeneration.Throughthisreview,thegovernmentishopingtodecreasethe

currentbarriersandincreaseaccessibilityinconnectingtothegrid.AstheRoadmap

wasimplementedin2015,itisstilltoosoontodetermineifithassuccessfully

increasedrenewableenergygenerationinVictoria.However,theVictorian

GovernmenthasstatedthatanyfeedbackreceivedfromtheRoadmapandanyfurther

methodsdevelopedtopromotecleanenergywillbethebasisfortheRenewable

EnergyActionPlan,whichisyettobereleased.

InMid-2016,theVictorianStateGovernmentannouncedTAKE221 whichisVictoria’s

commitmenttoreachnetzeroemissionsby2050.Thiscommitmentwasthen

supportedinlegislationundertheClimateChangeAct2016.TAKE2isuniqueasitis

thefirstgovernment-ledclimatechangepledgeprogramwithinAustralia.TAKE2

acknowledgesthatinordertoreducetheimpactofclimatechange,everyonehasa

roletoplay.Inordertoachievethislong-termstategoal,TAKE2takesbothatop-down

andabottom-upapproach.Theprogramencouragesbothconsumersandbusinesses

21 Victoria State Government: Department of Environment, Land, Water and Planning, TAKE2: Acting Now on Climate Change, 2016, http://www.climatechange.vic.gov.au/__data/assets/pdf_file/0006/369033/DELWP0046_ClimateChange_Take2Summary_singlesector_layout_v19.pdf

Australia: Victoria

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tomakepledgesalongsidethegovernment,tohelpkeepwarmingundertwodegrees.

Inordertoachieveboththeshort-termtargets(startingat2020andbeingupdated

everyfiveyearsthereafter)andthelong-termtargets(netzeroemissionsby2050),the

VictorianGovernmentpledgestocutemissionsinitsoperationsandkeysectorsofthe

Victorianeconomy,includingagriculture,transportandwaste.TheStateGovernment

intendsondoingthisthroughanumberofprogramsincludingtheResourceSmart

Schools22 initiativeandtheremovalof50levelcrossings23 acrossMelbourne.AsTAKE2

wasannouncedinmid-2016,itisstillearlyoninitsdevelopmentmeaningsignificant

changesinVictoria’semissionsareyettobeseen.TheuniquenatureofTAKE2

differentiatesitselffromotherprojectsthathavebeenimplementedinVictoriaand

acrossAustralia.Hopefully,thisdistinctiveapproachadoptedbytheVictorian

Governmentwillbeabletosuccessfullyreduceemissionsandhelpkeepwarming

belowtwodegrees.

TheChangeAdaptionPlan(2017-2020)24 wasdevelopedtoaddresstheshort-term

targetssetbytheVictorianGovernment.Throughplacinganemphasisonthe2020

targetthiswillhelpVictoriabeontracktoachievingitsfuturelong-termtargets.The

planoutlinesthegovernment'splanforthenextfouryearstoensureintegratedand

effectiveactionoccursacrossallofVictoria’ssectors.Aparticularfocusisplacedon

partnerships.Partneringwithlocalgovernmentsallowsforthisactiontobeeffective

andtohelpreducetheimpactsofclimatechange.Anexampleincludesapartnership

betweentheVictorianGovernmentandagriculturalindustries.Thiswillencourage

investmentinnewtechnologiesandresearch,allowingthesectoradaptwiththe

changingclimate.AfulllistoftheactionstheVictorianGovernmenthastakenunder

theClimateChangeAdaptionPlancanbefoundonpage54oftheplan.

22 http://www.resourcesmartschools.vic.gov.au/23 http://levelcrossings.vic.gov.au/24 Victoria State Government: Department of Environment, Land, Water and Planning, Victoria’s Climate Change Adaption Plan: 2017-2020, 2016, http://www.delwp.vic.gov.au/__data/assets/pdf_file/0011/369929/Victorias-Climate-Change-Adaptation-Plan-2017-2020.pdf

Australia: Victoria

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TheVictorianGovernmentreleasedtheClimateChangeFramework25 whichprovides

anoverviewonhowVictoriawillreachnetzeroemissions.Theframeworkdetailsallof

theprogramscurrentlybeingimplementedandthosethatwillbeintroducedinthe

future.Inordertoachievenetzeroemissionsby2050,thisrequireslong-term

planning,ensuringtheVictorianeconomyisclimate-resilient.Moreover,dueto

Victoria’scoaldependence,italsorequirestransformationtotakeplaceinanumberof

keysectors.AnexampleinvolvesworkingwiththeLatrobeValleytotransition,during

andfollowingtheclosureoftheHazelwoodPowerStation.TheClimateChange

Frameworkalongwithmanyoftheotherprogramshaveonlyrecentlybeen

implementedwithinVictoria.Asaresult,itisdifficulttogaugehowsuccessfulthese

programshavebeen.WiththeClimateChangeAct2016resultingVictoria’srenewable

energytargetsbeingsetinlegislationandmanyotherplansandinitiativesunderway,

itislikelythatVictoriawillchangeinthecomingyears.Atransformationinthestate’s

keysectorswillhopefullytranslatetoreducedemissionsandincreasedrenewable

energytechnologies.

25 Victoria State Government: Environment, Land, Water and Planning, Victoria’s Climate Change Framework, http://www.climatechange.vic.gov.au/__data/assets/pdf_file/0005/369032/DELWP0039_ClimateChange_Framework_v14.pdf

Australia: Victoria

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Targets and Policies By Country:South Australia, Victoria and New South Wales

NewSouthWaleshasalonghistoryofgeneratingandexportingcoal.Manystates

withinAustraliahavebeguntoreducetheirdependencyoncoal,however,NewSouth

Waleshasfallenbehind.AccordingtotheAustralianGovernment,in2016NewSouth

Waleshadthelowestrenewableenergysupplyoutofanystate26.Areasonbehindthe

delayedimplementationofrenewableenergytechnologiesmaybeduetotheHunter

ValleyCoalChainlocatedwithinthestate.NewSouthWaleshasreceivedcriticismdue

toalackofcommitmentregardingincreasingtheirrenewableenergysupplyanda

reluctancetosetastatetarget.Despitethis,oftherenewableenergytechnologies

thathavebeenimplemented,hydropowergeneratesthemostenergy.In2016,the

NewSouthWalesClimateChangePolicyFrameworkwasdeveloped.Currently,under

thisframework,NewSouthWaleshasastatetargetofnetzeroemissionsby2050,the

sameasSouthAustraliaandVictoria.Moreover,undertheimplementationofthis

framework,itisrequiredthattheNewSouthWalesClimateChangeFunddevelopa

StrategicPlan.TheDraftStrategicPlanwasreleasedin2016,withthefinalStrategic

Planexpectedtobereleasedin2021.AlthoughNewSouthWaleshasabadreputation

withregardstoadependencyoncoalandalackofrenewableenergy,thismaychange

withtherecentdevelopmentofstateprograms.

NewSouthWalesishometonumerouscoal-firedpowerplantsintheHunterValley

region,andasaresult,theirenergymixhasalonghistoryofbeingdependentoncoal.

TheHunterValleyCoalChain27 islocatedinNewcastle,NewSouthWalesandisthe

world'slargestcoalexportport,consistingofapproximately35coalmines28.Asa

26 Australian Government, Department of Industry, Innovation and Science, Australian Energy Statistics, https://industry.gov.au/Office-of-the-Chief-Economist/Publications/Pages/Australian-energy-statistics.aspx#27https://www.hvccc.com.au/Pages/welcome.aspx28https://www.hvccc.com.au/AboutUs/Pages/History.aspx

New South Wales

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result,thisregionnotonlygeneratesandexportslargeamountsofcoalbutalso

providesnumerousjobs.ThismayexplainNewSouthWales’reluctancetodecrease

thehighproportionofcoalintheirpowersupply.Despitemanystatesbeginningthe

transferawayfromcoal,theNewSouthWalesStateGovernmentisattemptingto

maintaintheproductivitywithintheregion.Thishasbeendonethroughthe

investmentofamedium-scalesolarthermalenergyboosterforacoal-firedpower

stationwithintheHunterValleyregion.Althoughthiswouldresultinreduced

emissionswithintheregion,inorderforNewSouthWalestosignificantlyreducetheir

emissionsfurther,moresustainable,renewableenergytechnologiesmustbe

implemented.Furthermore,therehasbeenrecentspeculationregardingthe

expansionandreopeningofcoalmineswithintheupperHunterValleyregion.This

wouldfurtherimpedeNewSouthWalesfromachievingtheirrenewableenergytargets

andincreasethestate’scarbondioxideemissions.

WithinNewSouthWales’electricitysupply,hydropoweristhethirdmajorcontributor,

followingcoalandnaturalgasrespectively.Themajorityofthestate'shydropower

energyoriginatesfromtheSnowyMountains.TheSnowyMountainsScheme29 was

originallydevelopedtocollectandstorewater,howeverthepotentialforthe

generationofhydroelectricitywithinthesystemsoonbecameapparent.Themulti-

reservoirhydroscheme,whichwascompletedin1974,provides32%ofallrenewable

energythatisavailabletotheeasternmainlandgridofAustralia30.Thescheme

generateslargeamountsofpeak-loadelectricitytoNewSouthWalesandtherestof

Australia.AlthoughthisschemeputsNewSouthWalesforwardasaleaderin

hydroelectricpowergeneration,thetechnologyusedisnowmature.Inorderto

repositionthemselvesastheleaderofhydropowerwithinAustralia,furtherexpansion

ofthissectormustoccur.Thismayincludeinstallationofsmall-scalehydropower

29http://www.snowyhydro.com.au/30http://www.snowyhydro.com.au/our-energy/hydro/the-scheme/

Australia: New South Wales

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facilitiesandtheexpansionandrefurbishmentofexistingplants.AlthoughtheSnowy

MountainsSchemeprovidesNewSouthWaleswiththemajorityoftheirrenewable

energygeneration,inordertoincreasethisgenerationfurther,adiversificationofthe

sectormustoccur.Asaresult,thedevelopmentofavarietyofschemeshavebeen

developedtoexpandrenewableenergycapacityandgeneration.

TheNewSouthWalesEnergyActionPlan31 wasimplementedin2013andaimsto

increaserenewableinvestment,andgrowrenewableenergyexpertisethrough

research.ItisstatedintheplanthatNewSouthWalessupportsthenationaltargetof

20%renewableenergyby202032 (asdiscussedinthepreviousreport).Duringthis

period,NewSouthWaleshadnotyetsetastaterenewableenergytarget.TheEnergy

ActionPlanoutlinesthreemaingoalsandnumerousactionsthatwillhelpthe

renewableenergyindustrygrowefficiently.Anexampleofanactionincludedwithin

theplanisfacilitatingtheconstructionoftheSolarFlagshipsProject.TheNewSouth

WalesGovernmentcontributed$64.9millioninfundingforthedevelopmentofthe

solarphotovoltaicprojectinBrokenHillandNyngan.Thesesolarplants,locatedin

ruralNewSouthWales,areexpectedtopoweraround50000homesandreduce

greenhousegasemissions.Moreover,theplanalsogoesintothedetailsofeach

renewableenergytype,andthewayinwhichthestategovernmentintendson

expandingthesetechnologies.Theplanalsoplacesaspecificemphasisonresearchin

thisfield.

TheEnergyActionPlanwasdeemedasuccessbyLeslieWilliams(ParliamentSecretary

forRenewableEnergy),statingthatinthefirstyearfollowingtheplan's

implementation,thestategovernmenthadcompletedoverathirdoftheactions

31 New South Wales Government: Department of Industry - Resources and Energy, NSW Renewable Energy Action Plan, 2013, http://www.resourcesandenergy.nsw.gov.au/__data/assets/pdf_file/0010/475318/nsw-renewable-energy-action-plan.pdf32 Clean Energy Regulator, History of the Scheme, 2016, http://www.cleanenergyregulator.gov.au/RET/About-the-Renewable-Energy-Target/History-of-the-scheme


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outlinedtheplan33.However,whenacomparisonismadetootherAustralianstates,it

canbeseenthatNewSouthWaleshasthelowestpercentageofrenewableenergy

electricityandhighestconsumptionofoverallenergy34.Therefore,inorderforNew

SouthWalestosignificantlyincreasetheirrenewableelectricity,thedevelopmentofa

moreholistic,long-termplanneededtooccur.

In2016,theNewSouthWalesClimateChangePolicyFrameworkwasreleased.This

frameworkoutlinesNewSouthWales’long-termplansforreducingtheimpactsofand

adjustingtothechangingclimate.Theframeworkalsooutlinesthestate’s2050goalof

netzeroemissionsandemphasisestheimportanceofincreasingNewSouthWales’

resiliencytoclimatechange.Theframeworksummarisesthepolicythatwillneedtobe

setinordertoachieveemissionssavingsandenableeffectiveactiononclimatechange

tooccur.Asanemphasisisplacedonpolicy,theframeworkactsmoreasacompilation

oftheendgoalstheNewSouthWalesStateGovernmentishopingtoachieve.The

methodsthatneedtobeundertakeninordertoachievethesegoalsareoutlinedin

theDraftClimateChangeFundStrategicPlan

TheDraftClimateChangeFundStrategicPlan(2017-2022)35,whichwasreleasedin

2016,detailsthepriorityareasinwhichtheNewSouthWalesGovernmentintendson

investingin,inordertoreducetheimpactsofclimatechange.Theplanstatesthatit

willprovidefundingfromtheClimateChangeFundtowardsacceleratingadvanced

energy,nationalleadershipinenergyefficiencyandpreparingforachangingclimate.

Includedinthis,NewSouthWaleswouldseefundingputtowardscleanenergy

upgradesforrentalhouseholds,toreducepowerbills.TheStateGovernmenthas

33 New South Wales Government: Department of Industry - Resources and Energy, Report Hails NSW Renewable Energy Plan a Success, 2014, http://www.resourcesandenergy.nsw.gov.au/__data/assets/pdf_file/0005/539501/141222_Report-hails-NSW-Renewable-Energy-Action-Plan-a-success.pdf34Climate Council, Game On: The Australian Renewable Energy Race Heats Up, 2016, http://www.climatecouncil.org.au/uploads/2acac0b824742ec83f99676255ae5a81.pdf35New South Wales Office of Environment and Heritage, Climate Change Fund: Draft Strategic Plan 2017-2022, 2016, http://www.environment.nsw.gov.au/resources/climatechange/Environmentalfuturefundingpackage/draft-climate-change-fund-strategic-plan-20160438.pdf


18

placedanemphasisonthisarea,asaroundone-thirdofhouseholdsinNewSouth

Walesarerentalhouseholds.Byprovidingratingsforrentalhouseholds,thislets

interestedpartiesknowwhichpropertiesaremoreenergyefficientandthereforewill

havealowerelectricitybill.Asfuturerentersaremoreinclinedtooptforthecheaper,

moreenergyefficientoption,thisencourageslandlordstoinstallenergy-efficient

products,suchassolarhotwater.Avarietyofotheractionsareincludedintheplanin

ordertoachievethethreepriorityareasdetailedabove.Moreover,theplanalso

acknowledgesthatinordertoachievenetzeroemissions,theclosureofcoal-fired

powerstationsmustoccur.TheplandetailstheclosureoftheLiddellPowerStation

andtheBayswaterPowerStationandemphasisestheimportanceofasmooth

transitionintoreliable,affordableenergy.

TheDraftClimateChangeFundStrategicPlanwasdevelopedinordertoreceivethe

generalpublic’sfeedbackontheactionsbeingundertakentoaddressthepriority

investmentareas.TheNewSouthWalesGovernmentintendsontakingintoaccount

thefeedbackreceived,whilstmonitoringthesuccessoftheactionsunderthedraft

plan.Itisstatedinthedraftplanthatthegovernmentintendsoncontinuously

evaluatingthestate'sprogressthroughthedevelopmentofannualreportsfrom2017

onwards.TheNewSouthWalesStateGovernmentwillalsoreleasetheClimateChange

FundStrategicPlan(2022-2027)in2021,whichlooksatthefutureprogressionofNew

SouthWales’shifttorenewableenergy.NewSouthWaleshasbeenslowtoplanand

implementtheirrenewableenergytechnologies,whichcurrently,hasresultedin

minimalchangestotheirenergymix.However,therecentdevelopmentofplansand

frameworkshashopefullylaidthegroundworkforchangetooccur.Thedevelopment

ofthe2050targetalongsidethesedocumentswillhopefullyresultinincreased

renewableenergywithinNewSouthWales’energysectorinthenearfuture.


19

Resource:https://industry.gov.au/Office-of-the-Chief-Economist/Publications/Pages/Australian-energy-statistics.aspx#

ProportionofRenewableEnergyConsumptionbyState(2008-2014)Co

nsum

ption(PJ)

ProductionandConsumptionofCoalbyState(kt)(2015)

20%

38% 2% 6%

33%

1%

Coal Natural GasOil-based SolarWind Other renewables

86%

4% 5% 3%

EnergyGenerationbySource,Victoria(2015)

EnergyGenerationbySource,SouthAustralia(2015)

3,164

62,226

25,225

2,466

62,895

196,413

SA

VIC

NSW

Production Consumption

0

2

4

6

8

10

2008 2009 2010 2011 2012 2013 2014

SA

NSW

VIC

QLD

WA

82%

7% 2%

6%

EnergyGenerationbySource,NewSouthWales(2015)

20

The GovernmentofSouthAustralia,ClimateChange,http://www.climatechange.sa.gov.au/home

RenewablesSA,RenewableEnergyResourceMapshttp://www.renewablessa.sa.gov.au/investor-information/resources

TheGovernmentofSouthAustralia, Zero WasteSA,http://www.zerowaste.sa.gov.au/

ABC News,RenewableEnergyMixplayedaroleinSAblackout,thirdAEMOreportconfirms,2016,http://www.abc.net.au/news/2016-12-12/renewable-energy-mix-played-role-in-sa-blackout/8111184

The Guardian,PortAugusta'bustingagut'toreinventitselfasasolarcitywhencoal-firedpowerisswitchedoff,2016,https://www.theguardian.com/environment/2016/mar/24/port-augusta-busting-a-gut-to-reinvent-itself-as-a-solar-city-when-coal-fired-power-is-switched-off

News.com.au,WhySouthAustralia’sblackoutsareaproblemforusall,2017,http://www.news.com.au/technology/environment/why-south-australias-blackouts-are-a-problem-for-us-all/news-story/bc3bbc8be17d80844bc05ab7f5760d56

TheAustralia,Government: DepartmentofResources,EnergyandTourism,TheSolarCitiesProgram– TheJourney,2013,https://industry.gov.au/Energy/EnergyEfficiency/Documents/solar-cities-journey.pdf

TAKE2,Victoria’sClimateChangePledge,https://www.take2.vic.gov.au/

VictoriaStateGovernment,DepartmentofEnvironment,Land,WaterandPlanning,ClimateChangeandVictoria,http://www.climatechange.vic.gov.au/

RenewEconomy,VictoriaCoalitionmayvoteagainst“fairer”solarfeedintariffs,2016,http://reneweconomy.com.au/victoria-coalition-may-vote-against-fairer-solar-feed-in-tariffs-83337/

VictoriaStateGovernment,DepartmentofEnvironment,Land,WaterandPlanning,EnergyEfficiencyandProductivityStatement,http://www.delwp.vic.gov.au/energy/energy-efficiency/energy-efficiency/energy-efficiency-and-productivity-statement

TheAge,GovernmentAttackedonSolarTariffPlan,2009,http://www.theage.com.au/environment/government-attacked-on-solar-tariff-plan-20090316-8zww.html#

VictoriaStateGovernment,DepartmentofEnvironment,Land,WaterandPlanning,Victoria’sRenewableEnergyRoadmap,http://delwp.vic.gov.au/energy/renewable-energy/victorias-renewable-energy-roadmap

VictoriaStateGovernment,DepartmentofEnvironment,Land,WaterandPlanning,ClimateChange,http://www.delwp.vic.gov.au/environment-and-wildlife/climate-change

Further Resources

SouthAustralia Victoria

21

NewSouthWalesGovernment,OfficeofEnvironment& Heritage,http://www.environment.nsw.gov.au/grants/ccfund.htm

The SydneyMorningHerald,Revealed:MajornewcoalminesplannedfortheUpperHunter,2015,http://www.smh.com.au/environment/revealed-major-new-coal-mines-planned-for-the-upper-hunter-20150220-13ki4a.html

ABC News,UpperHuntercoalminesettoreopen,creating275jobs, 2016,http://www.abc.net.au/news/2016-11-02/upper-hunter-coal-mine-set-to-reopen-creating-275-jobs/7989002

Sky News,PMannouncesSnowyHydroexpansionplan, 2017,http://www.skynews.com.au/news/top-stories/2017/03/16/pm-to-announce-snowy-hydro-expansion-plan.html

NewSouthWales Government,FactSheet:Achievingnet-zeroEmissionsby2050,http://www.environment.nsw.gov.au/~/media/7ABECB42C4684E07A1B241679956786B.ashx

NewSouthWales Government,OfficeofEnvironment& Heritage,ClimateChange,http://climatechange.environment.nsw.gov.au/

NewSouthWales Government,OfficeofEnvironment& Heritage,NSWClimateprojectionsmapfor 2060-2079,http://climatechange.environment.nsw.gov.au/Climate-projections-for-NSW/Interactive-map

Snowyhydro,ExpandingPumpedHydroStorage,2017,http://www.snowyhydro.com.au/news/expanding-pumped-hydro-storage/

Further Resources

NewSouthWales