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Australian SMEs are facing an energy cost crisis, with retail prices for electricity set to rise by unprecedented amounts across states from July. Most commentators agree wholesale energy costs are the primary culprit driving up your energy bills, and they also agree renewables are the only sustainable way forward. So, given this rare alignment between financial and environmental imperatives, we thought the moment was right to ask: What has been done, what is being done, and what still needs to be done to support Australia’s transition to renewables?
Taking stock of where we’re at
On the whole, Australia isn’t doing too badly at converting to renewables – though nor do we stand out as world leaders. In 2021, 29% of the country’s electricity came from renewable sources, predominantly solar (12%), wind (10%) and hydro (6%). To put those figures in perspective, 29% is the biggest share of renewable energy we’ve ever produced – surely worthy of a pat on the back. However, it’s worth considering that in the same year, our Kiwi neighbours generated 82.1% of their electricity from renewables.
If you look at the breakdown of renewable energy generation across states in 2022, it’s clear some are outperforming others:
- Tasmania gets 99.1% from renewables
- South Australia gets 71.5%
- Victoria gets 36.8%
- Western Australia gets 35.2%
- New South Wales gets 30.7%
- And Queensland get only 22.6%
History and geography have helped create this uneven distribution of renewables across states. Tasmania, our star performer, has benefitted from both: Not only does the state possess an enviable supply of hydro-producing rivers, its development has historically been powered by water. Relying on the power of financial incentives, the Federal Government’s Renewable Energy Target was critical for pushing our overall supply of renewables to record levels by 2021. Impressively, the Target – namely, to produce 33,000 GWh by 2020 – was reached a year ahead of schedule, in September 2019.
Honing in on what’s being done
NSW is the big mover in terms of renewable energy policy right now. The state’s recently elected Labor government has promised to create the Energy Security Corporation – a state-owned body that will support investment in renewable energy assets. Drawing on an initial investment of $1B, and working together with private enterprise, the Corporation will funnel cash into storage solutions like pumped hydro and community solar batteries.
NSW isn’t the only state where money’s being spent on the renewable transition. If you’re based in Victoria, ACT, Queensland, your SME may be eligible for a rebate to install rooftop solar. And if you’re outside those states, you could still qualify for a similar rebate from the federal government.
Navigating the way forward
The way forward for Australia’s renewable transition can be summarised in one word: infrastructure. While it might be the sexiest term to associate with our future, it’s definitely the most important element for developing a truly sustainable energy supply in this country. Infrastructure is what we need to convert our abundant renewable resources into usable energy – think of wind turbines and solar panels.
More importantly, infrastructure is what we need to store and transport that energy to where it’s required – think of community batteries and underground wiring. Government initiatives will play a key role in developing that infrastructure – though they will need the support of private enterprise. One way of pushing companies to invest in renewable infrastructure is with your money. By supporting renewable energy suppliers, you’re helping create a renewable energy future.
Renewables are the future of Australian energy. If you want to be part of that future, Zembl’s Sustainable Energy experts can help you understand and compare your options to reduce your environmental impact. Fill out our contact form below, and one of our Energy Experts will give you a no-obligation call to discuss your options and make sure you're on the best plan.
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