Energy Minister calls for private sector to help Australia's renewables shift
Energy Minister Chris Bowen will pledge on Wednesday to cut tendering and approvals times for power projects as he calls on the private sector to help fund the national renewable roll-out.
In his first major speech since Labor was reelected on May 3, Mr Bowen will tell the Australian Energy Week in Melbourne on Wednesday that Government alone can't deliver the energy transition.
'Government is not enough. We need the private sector and the community engaged, investing, thinking, innovating, risking and employing,' he will say, according to a draft version of the speech seen by The West Australian.
The address will outline Labor's energy agenda next term, including plans to fast track the tender process of the Capacity Investment Scheme.
The Government has so far underwritten about $17 billion of private investment into renewable and storage projects through the scheme, Mr Bowen will say. In Western Australia, that included Neoen's Muchea Big Battery.
'We will reduce the time taken to finalise tender outcomes to around six months from the current nine months by moving to a one stage tender process rather than two stages, as is the case now,' Mr Bowen will say.
'The sector still faces social license challenges, workforce constraints, and approval times.
'Together with the states and the industry, we are working to alleviate these constraints.'
The Government will review the power price benchmark — called the default market offer — used to protect consumers in the east coast market.
'The DMO was intended to act as a benchmark price to stop the worst forms of price gouging, while leaving the job of putting downward pressure on prices to competition between energy companies,' Mr Bowen was expected to say.
'However, I'll be frank. I don't think it's working that way and reform is needed.'
Mr Bowen was also expected to use the speech to back Australia's net zero targets and hit back both at climate deniers and critics that the Government was acting too slowly.
'Their denial of our momentum and ready willingness to seize on a day's headline and ignore the years of progress, can be just as disheartening and dangerous to the cause,' he will say.
'Commentating is easy. Sitting in the stalls like Statler and Waldorf in the Muppet show criticising others is not hard.'
Mr Bowen will say Australia progressing its renewable agenda is needed to 'restore' its deteriorated 'climate reputation', especially amid it's bid to host the COP31 climate change conference in November 2026.
He says Australia is making a 'serious and strong' bid for COP31 in a partnership with Pacific nations.
Noting clean energy projects have exceed $3 trillion globally, Mr Bowen hinted that Australia could be considering lifting its investment, saying 'we want to grow this, and Australia's share in it'.
Mr Bowen has already announced a wide-ranging review of Australia's energy framework this term, saying in Perth last month he's prepared to have 'tough conversations' with gas companies.
The review is expected to be held from July 1 to investigate how market bodies can ensure greater gas access for Australians.
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