The Smart Energy Council, Clean Energy Investor Group, and Climate Action Network Australia have called on the Federal and State Energy Ministers to create a Renewable Energy Storage Acceleration Scheme to spur investment in large-scale renewable energy storage.
Smart Energy Council Chief Executive John Grimes said without unleashing renewable energy storage, the target of 82 per cent renewable energy by 2030 could not be reached.
“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,” Grimes stated.
Under the Renewable Energy Storage Acceleration Scheme, the Commonwealth Government and State Governments will launch a series of tenders for large-scale renewable energy storage projects to fill predicted deficits in dispatchable generation and storage.
Proponents would offer a floor price for the project’s net revenue over time, allowing them to receive low-cost financing currently unavailable due to missing and perceived unpredictability in storage revenue streams.
On most occasions, the storage project’s net revenue would be considerably in excess of the floor, resulting in no government payments to the storage project.
The scheme would also include clawback clauses, requiring storage projects to repay the government when their net revenues are significant.
Clean Energy Investor Group Chair Simon Corbell said the Renewable Energy Storage Acceleration Scheme provides investors with precise signals while delivering rapid, proven, and cost-effective renewable energy storage.
“The scheme also retains strong incentives for owners of storage assets to pursue other revenue streams, thereby reducing risk to consumers and taxpayers,” Corbell added.
According to Climate Action Network Australia CEO Glen Klatovsky, renewable energy storage is crucial for climate action.
“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,” Klatovsky said.
