If Australia wants to accelerate its transition to 100% renewable energy, it needs to learn from the risky path Europe has taken
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If Australia wants to accelerate its transition to 100% renewable energy, it needs to learn from the risky path Europe has taken

wind turbine

Source: Unsplash/CC0 Public Domain

Even though we have been supporting the development of renewable energy sources for decades, we are still too dependent on coal and gas power plants.

The problem isn’t our ability to generate clean energy. It’s what happens after that. The main obstacles include the need for 10,000 kilometres of new transmission lines to connect rural renewable farms to urban consumers. Another often-cited reason is the need to store renewable energy so it can be used when needed. That’s why the Australian Energy Market Operator sees such a big role for large-scale storage, combined with flexible gas as a back-up solution.

Investment in renewables actually shrank in Australia last year. There are many reasons for the slowdown. Some are local, such as rural communities lobbying against new transmission lines, the need for planning and environmental approvals, and the slow pace of new regulations. Others are global, such as increased competition for engineers and electricians, clean technologies, and raw materials.

As climate change worsens, frustration with the slow pace of change will intensify. But as we look around the world, we see similar challenges emerging in many countries.

European Union

Transmission line outages are by no means a unique delay for Australia. International Energy Agency data shows that it takes an average of ten years to build new grid assets in both Europe and the United States.

In 2022, the European Union introduced legislation explicitly aimed at accelerating the transition to clean energy by speeding up permitting for renewables, grid investments and storage assets. These investments, the legislation states, are: “presumed to be in the overriding public interest … when balancing legitimate interests in an individual case.”

This means that when the interests of other stakeholders — including local communities and the environment — conflict with clean energy plans, clean energy takes priority.

Germany has gone even further, introducing national regulations to further streamline planning and approvals and to favor energy transition projects over competing interests. These changes have been sweetened by financial incentives for communities participating in clean energy projects.

It’s a risky path. European leaders have chosen to accelerate the transition away from fossil fuels, risking inflaming local communities. The scale of the backlash became clear in June’s European Parliament elections, in which populists gained seats and environmental parties lost.

United States

In 2022, the US government passed a huge piece of green legislation known as the Inflation Reduction Act. Instead of introducing more regulation, the US opted for a green stimulus, offering A$600 billion in subsidies and tax breaks for companies investing in green manufacturing, electric vehicles, storage, etc. This approach has been very effective so far. But money isn’t everything – new transmission lines will be necessary, which means approvals, planning, securing a land corridor, etc.

This year, the U.S. Department of Energy published new rules combining all federal approvals into one program, aimed at speeding the construction of transmission lines across state lines.

Australia could borrow from this. The government’s Future Made in Australia policy package takes its cues from the US green stimulus, but on a smaller scale. America’s example shows us that these incentives work – especially when they’re big.

Streamlining and combining approvals, US-style, could solve delays resulting from overlapping state and federal approvals. Supporting local green manufacturing can create jobs, which in turn encourages community involvement.

China

Even as Australia’s clean energy drive has reached its peak and emissions have stagnated, China’s stunning clean energy drive has begun to bear fruit. Emissions in the world’s largest emitter have begun to fall, five years ahead of the government’s target.

They did this by covering deserts with solar panels, building huge offshore wind farms, developing high-speed rail, building hydroelectric plants and very quickly deploying electric vehicles. In 2012, China had 3.4 gigawatts of solar power and 61 gigawatts of wind power. By 2023, it had 610 gigawatts of solar power and 441 gigawatts of wind power. It also monopolized the renewable technology market and made a big push into electric vehicles.

Of course, the Chinese government has far fewer checks and balances and exercises tight control over communities and media. We don’t often see the costs to communities.

China has also used industrial policy astutely, with government and industry working in partnership. In fact, green policies in the US, EU, Australia and other Western jurisdictions take their cues from China’s approach.

China still has a long way to go. But given its reliance on energy-intensive manufacturing, it is remarkable that China’s leaders have managed to halt the steady growth in emissions.

Acceleration has its price

These examples show how energy transformation can be accelerated. But this often comes at a cost.

Costs can be monetary, for example when governments direct funding towards green incentives rather than other areas. But they can also be social, if the transition comes at the expense of supporting communities or the health of the local environment.

It comes with the territory. Major infrastructure projects benefit many but disadvantage some.

While Australian governments could prioritise climate action over all else, as the EU does, they would risk social and political repercussions. Longer-term progress means working to secure local support.

For example, Victoria’s new Transmission Investment Framework puts communities at the forefront, focusing on their role and what they can gain at an early stage.

Yes, this approach may slow the pace at which wind turbines are built and solar power is deployed. But it may secure public support in the long run.

No one said that switching to green energy would be easy; they just said that it is necessary, valuable and possible.

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