Alinta CEO Jeff Dimery recently addressed the challenges facing the renewable energy transition in Australia, highlighting the slow rollout of renewable projects and the lack of storage as major obstacles. In his speech at the Australian National Press Club, Dimery expressed concerns about rising energy prices and the financial struggles faced by energy retailers and wholesalers, which hinder their ability to invest in renewable energy.
Dimery emphasized the urgent need to expand Australia’s renewable generation capacity to meet the increasing electricity demand in the coming decades. He stated that by 2035, the National Electricity Market (NEM) would require four times the current capacity of utility-scale solar and wind, and by 2050, more than seven times the current capacity would be needed to phase out coal. However, developers are pulling back on commitments to building large-scale renewables due to financial constraints and the inability to recoup high costs.
The CEO also highlighted the issue of excess solar energy and curtailment. While solar energy accounts for 14 percent of total electricity generation, there is a lack of battery storage to store the excess energy for later use. As a result, 95 percent of all large-scale renewables are curtailed during high rooftop solar days. This curtailment has led to a lack of profitability and has deterred companies and investors from expanding renewable sources.
Dimery warned that consumers would have to bear the brunt of these challenges, with energy prices expected to rise in the coming years. He explained that capital costs, labor costs, and transmission costs are all increasing, which will ultimately lead to higher energy costs for Australians. Despite the bleak outlook, Dimery believes that collaboration between the energy sector, government, and community can help ensure energy security and leverage renewable energy effectively.
He called on the government to maintain clear public policy and focus on the current energy mix rather than getting distracted by new ideas without a firm social mandate. Dimery also emphasized the need for industry collaboration with customers to help them store and shift their energy load to cheaper periods. Additionally, he expressed hope for partnerships between industry and governments to develop large-scale storage solutions that can address the excess solar energy during peak times.
In conclusion, Alinta CEO Jeff Dimery’s speech sheds light on the challenges facing the renewable energy transition in Australia. The slow rollout of renewable projects, lack of storage, financial struggles of energy retailers, and curtailment of excess solar energy are major concerns. However, Dimery remains optimistic that collaboration between various stakeholders can help overcome these challenges and ensure a more sustainable and affordable energy future for Australia.
