(MENAFN- Investors Ideas)
Australian renewable energy market investment uncertainty due to Gov't policy vacuum, says GlobalData
October 22, 2018 (Investorideas.com Newswire) Following last month's news that the Australian Government has no plans to revise its renewable energy target after 2020,
Arkapal Sil, Power Analyst at GlobalData, a leading data and analytics company, offers his view on the implications of this decision for the Australian renewable energy sector:
"The Australian government's recent decision (Sept 2018) not to revise the country's renewable energy target (RET) after 2020, in addition to scrapping the National Energy Guarantee (NEG), which aims to reduce emissions by 26% by 2030, has brought about a certain degree of investment uncertainty in the Australian renewable energy market.
"As a result of this uncertainty we may see Australia increase its conventional power capacity in order to maintain its annual base-load power requirements. According to GlobalData, 30% of Australia's total installed energy capacity in 2017 was generated from renewables, including 10% from solar and 7% from wind power. By 2030, this figure is estimated to be 57% with a compound annual growth rate (CAGR) of 19.5%. However solar PV capacity is likely to decline by a CAGR of 5% to 2030 while overall power demand is expected to increase by 20% from 2018 to 2030.'
"Owing to policy uncertainty and a lack of clarity on the future direction of the national energy sector some large international players are looking to exit the Australian renewable market. The Chinese wind turbine supplier and project developer Goldwind is reportedly looking to move out of the market by offloading its wind and solar assets. This is a significant development as the sector needs private investment to kick start projects with the high nature of their initial capital funding requirements. This is also despite the fact that the country is expected to exceed its 2020 renewable energy generation target of 33,000 GWh.
"Whilst the current uncertainty is limiting investment funding for large-scale renewable projects, smaller state funded projects have largely been unaffected as they strive to achieve their renewable energy targets. Victoria, has a renewable energy generation target of 25% by 2020 and 40% by 2025, while Queensland's target is 50% renewable energy by 2030. Companies like Windlab, Tilt Renewables, Genex Power, Kalina Energy and others continue to work on state funded renewable energy projects like the 336 MW Dundonnell wind farm in the State of Victoria.
"Any sort of regulatory intervention needs to be carefully thought through so as not to affect the commercial viability of the smaller players which could lead to reducing market competition."
For more information
To gain access to our latest press releases: GlobalData Media Centre
Analysts available for comment. Please contact the GlobalData Press Office:
EMEA & Americas: +44 (0)207 832 4399
Asia-Pacific: +91 40 6616 6809
GlobalData.com | LinkedIn | Twitter
About GlobalData
4,000 of the world's largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData's unique data, expert analysis and innovative solutions, all in one platform. GlobalData's mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology, energy and professional services sectors.
RenewableEnergyStocks.com: investing ideas in renewable energy stocks Like Renewable Energy Stocks? View our Renewable Energy Stocks Directory Get News Alerts on Renewable Energy Stocks
More Info:
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release on the Investorideas.com newswire https://www.investorideas.com/News-Upload/
Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: https://www.bcsc.bc.ca/release.aspx?id=6894 . Global investors must adhere to regulations of each country.
Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp
MENAFN2310201801420000ID1097606443
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.