Insight from All Energy 2024 - leading discussions on Australia’s net-zero transition

2024 has been a milestone year for Pacific Green’s expansion in Australia. We have successfully reached development approval for our Limestone Coast Energy Park, South Australia, and are currently in the approvals process for our second energy park in Portland, Victoria. We were also excited to have the opportunity to sponsor and lead discussions on Australia’s net-zero transition at the All Energy Conference in Melbourne in October 2024. In the latest of thought-leadership series, we wanted to share some of the key messages our Australia Chief Executive, Joel Alexander, discussed in his opening address and panel discussion at the All Energy event. 

Progress towards net-zero

Momentum behind collective climate action in Australia is accelerating. According to CSIROS’s latest study of public attitudes towards the energy transition, almost 2 thirds of Australians (64%) agreed, that we can act collectively to reduce the negative effects of climate change. In addition, over 80% claimed to now be interested in how the energy transition will happen. So public engagement and support for change is growing. Businesses also know they need to change. With a recent study showing that 75% of Australian businesses are now adapting or planning to adapt their business model to meet the challenges of climate action.  

Overall, Australia is starting to deliver. Around 40% of national electricity generation now comes from renewables. We are ranked 4^th globally for grid-scale battery storage with capacity growing exponentially year-on-year, and the country is consistently ranked within the top five most attractive destinations for investment in renewable energy. 

There is still a long way to go, but at Pacific Green at least, we see the next five years as being an incredibly exciting time for the energy sector in Australia. That is why weare supporting the conversations and industry collaboration at All Energy and its why we are committed to building a multi-gigawatt battery storage portfolio across the country.  

Collaboration to achieve the energy transition

The momentum towards net-zero in Australia in part because our industry is being supported by strategic, targeted government action in terms of permitting and approvals so that projects can get off the ground. In terms of financing, the federal government’s Capacity Investment Scheme is a great case in point. The scheme should unlock up to 6 GW of new dispatchable renewable energy generation and storage by offering long-term revenue certainty to investors in clean energy projects – further de-risking our market and drawing in more capital. At the State level the expanding role of Victoria’s State Electricity Commission in backing renewable energy as well. 

In the private sector, we are also seeing a growing group of players developing, constructing and operating renewable generation and storage projects which in turn is driving innovation - and we at Pacific Green are excited to be part of that trend. 

As mentioned, this year saw development approval for our Limestone Coast Energy Park in South Australia.  The project will see two co-located battery energy parks delivering a combined 0.5GW / 1.5 GWh of storage into the grid. The site is strategically positioned, with a 275 kV substation adjacent to the site, feeding into the Heywood Interconnector between South Australia and Victoria.  

Beyond the Limestone Coast we also have our 1 GW / 2.5 GWh Portland Energy Park project, which is currently going through approvals. Once commissioned, it will be the largest battery project on Victoria’s grid, and in the country.

Together, both our Limestone Coast and Portland Energy Parks, show the scope and ambition of our business in Australia. But they are also reflective of the level of demand in the market. We will continue to scale, but Australia needs more renewables and battery developers, working collaboratively to ensure we can meet the country’s net-zero targets. 

Get ready for 2025 

Australia has established the policy settings, regulatory rigour and support to establish a business environment that’s enabling a strong clean energy future. The opportunity ahead is to continue to build on this momentum. At Pacific Green, we are excited to commence construction for the Limestone Coast Energy Park and progress the development for the Portland Energy Park to financial close. We are very proud of the work we are undertaking here in Australia, in combination with regulators, community stakeholders, and local policy makers to make sure our energy parks deliver a net environmental and social benefit to the local areas where we operate. We will continue to make key aspects of our assets available to the community and key stakeholders and in addition to the energy benefits our assets will bring, we really look forward to returning local benefits through jobs, opportunities for suppliers and social value creation through investment.