Market Update | 17 May

• Australia’s 2024-25 Federal Budget for the Renewable Energy Sector
• Half a million Victorians experience power lost and train delays as State’s largest coal fired power plant went down due to severe storm
• Updates surrounding requirements for air conditioning installation and certificate creation in SA REPS/ Gigajoules under activity HC3

Australia’s 2024-25 Federal Budget for the Renewable Energy Sector

Australia just unveiled a significant investment in clean energy. The new budget allocates $22.7 billion over the next decade under the “Future Made in Australia” plan. This aims to create new jobs and make Australia a leader in the global shift to net zero.
Here’s the breakdown:

• Boosting critical minerals and hydrogen production: The government is investing heavily in processing critical minerals ($7 billion) and making clean hydrogen fuel ($6.7 billion).
• Innovation for a cleaner future: $1.7 billion will fund research into green technologies and low-carbon solutions. Including a $32.2 million to fast-track the initial phase of the Guarantee of Origin Scheme focused on renewable hydrogen and expanding it to accredit content of green metals and low-carbon liquid fuels.
• Building strong supply chains: $1.5 billion will go towards making batteries and solar panels more readily available in Australia.
• Preparing the workforce: $1.1 billion will be used to revamp universities and train people for the jobs of tomorrow.
• Investing in infrastructure and research: This includes mapping mineral resources ($566 million), supporting farmers facing drought ($519.1 million), and improving satellite data for various uses ($448.7 million).
• Developing cutting-edge technologies: The budget allocates funds for advancements in quantum computing ($466.4 million) and supporting the digital identity system ($288 million).
• Helping businesses and communities: Support for small businesses (through tax breaks and mental health support), training programs in construction ($88.8 million), and promoting women’s careers in clean energy ($55.6 million).

The government also provides $3.5 billion energy bill relief to more than ten million households and some small businesses starting from 1st July, 2024.

The government also plans to extend funding for the Australian Renewable Energy Agency (ARENA) and create a new $1.7 billion Future Made in Australia Innovation Fund. They’re aiming to create new industries and equip Australians with the skills needed to succeed in this clean energy revolution.

Half a million Victorians experience power lost and train delays as State’s largest coal fired power plant went down due to severe storm

There was a significant power outage in Victoria in May 2024, affecting roughly half a million residents in some areas for a number of days in some areas. The cause was two-fold: the shutdown of a major coal-fired power station and multiple transmission line failures. The Australian Energy Market Operator (AEMO) attributed the outages to a collapsed transmission line and disconnected generators, while strong winds and lightning strikes were also blamed for damaging the wider network.  This resulted in hundreds of faults, not to mention a spike in energy prices across the state.

Updates surrounding requirements for air conditioning installation and certificate creation in SA REPS/ Gigajoules under activity HC3

In the previous creation of REPS/ Gigajoules, ductwork for air conditioning with requirements to be installed at a minimum rate of R1.5, has now been lowered to a new minimum rate of R1.0. Market speculates this will contribute to a higher intake of air conditioning installations, given the rarity of products for ductwork with an value R1.5 or above.

In addition to this, transition factors of 2024 and 2025 have been announced to a value factor of 4. And this will translate into amplified creations of REPS by up to four folds compared to previous calculations of the gigajoules created.

In light of these changes for activity HC3, market can expect a higher intake in air conditioning installations or replacements in SA.

At Ecovantage, we consistently analyse market activity, policy changes, consultation releases, and creation rates in conjunction with wider landscape activity. This allows us to keep our clients at the forefront of all relevant changes, and to leverage the advantage that this presents. Thank you for your continued support, and please reach out if you have any general or project-specific questions.