Global investment bank UBS has conducted the first in-depth analysis of Labor’s proposed 50 per cent renewable energy target for Australia by 2030, concluding that it will require around $80 billion in investment, but much of this would need to be spent anyway, as most of the thermal coal and gas generators in Australia are old and will need replacing.
UBS suggests that a reverse auction process might be the best way to meet a Labor 50 per cent target – the same system adopted with great success in the ACT, and now by Germany and Texas and elsewhere (South Africa, UAE and Brazil also come to mind). Legislation could set a quantity of renewable capacity to be added to each year. For instance, a 50 per cent by 2030 target requires around 70TWh of new renewables to be delivered over the 13 years from 2018 to 2030. That’s around 5TWh per year. A capacity auction could be run, say, four times per year for 1.25 TWh of new renewable supply per year over 15 years. That would lead to 60 TWh of new renewable supply in a predictable fashion.”
Renew Economy: Giles Parkinson” 14 Sep 2015
Key Words: OzPolitics