Australia is redefining its approach to climate change as the Albanese government strives to strike a balance between environmental goals and cost-of-living pressures.
Renewables Reality Check
Energy Minister Chris Bowen signals a shift away from the economic fantasy of a budget-friendly renewables-based grid, acknowledging the challenges of slowing investment and rising energy prices.
CIS Expansion: Redefining Risk and Subsidies
The Capacity Investment Scheme (CIS) takes a bold step, incorporating 23 gigawatts of large-scale renewable generation. This move replaces subsidies with a government-backed contract system, altering the risk landscape.
Immediate Challenges and Rooftop Solar Exclusion
As rooftop solar PV faces exclusion from the deal, subsidies set to conclude in 2030 trigger a rush in installations. However, questions loom about the industry’s sustainability post-subsidy.
The CIS expansion may be seen as a political Band-Aid, providing a temporary solution to immediate concerns while sustaining stakeholder support.
Source: afr.com
