From The Conversation (24/11/23)…
The government will underwrite risky investments in renewables – here’s why that’s a good idea
Climate Change and Energy Minister Chris Bowen today announced a scheme to underwrite the risk of investing in new renewable energy generation and storage.
The expansion of the national Capacity Investment Scheme follows a successful pilot study with New South Wales. The government paid A$1.8 billion for just over a gigawatt of capacity, through a combination of batteries and other storage.
Bowen says the scheme “underwrites new renewable generation and storage, providing certainty for renewable investors and cheaper, cleaner energy for households and businesses”. And if all goes well, the scheme will provide a financial return to taxpayers.
Most of the country still relies on dirty coal-fired power. Several power stations have already closed and many more have flagged intentions to close. The ageing fleet is also unreliable, causing power outages. Before coal exits the system, we need to replace it. This scheme will ensure that happens well in advance.