The Australian Government’s Innovation Priority Sectors – Energy and Renewables

Clean and renewable energy is not the political battleground it once was. Now, the majority of us — despite political affiliations — agree that something needs to be done to halt the march of climate change. With this in mind, energy and renewables have become innovation priorities for the Australian government, as policymakers look to shape a more positive future for us all.

The Current Landscape

Australia is in the enviable position of producing far more energy than it consumes, with huge tracts of potential resources located within the nation’s territory.

Back in 2017, Australia used more than 1% of the energy consumed around the world but produced 16.5 quadrillion British Thermal Units (BTU) of energy, enough to fulfil its own needs almost 2.7 times over. Looking at electricity alone, Australian production increased slightly in 2021, rising to 267,452 gigawatt hours (GWh).

But what about renewable energy? By definition, non-renewable forms of energy are finite in supply, which means we need to find an alternative in the future. These forms of energy are also damaging to our environment, further driving the need for new and innovative approaches to power. Until recently, Australia’s renewables picture was less positive — only 6% of energy consumed in 2017 was from a renewable or a nuclear source — but this seems to be changing. Renewable sources constituted 29% of Australia’s electricity generation in 2020, up 5% from the previous year.

Solar energy is an enormous potential asset to Australia’s energy production industry, making up 12% of total generation in 2021. Wind and hydro were close behind at 10% and 6%, respectively. However, more than half of all the electricity generated in Australia in 2021 was still produced by coal-fired power stations, representing a significant margin for improvement in the energy sector.

There is progress here, but there is still some distance left to travel if Australia is to realise the potential of its renewable energy assets.

Innovation Support from Australia’s Government

“We cannot solve our problems with the same thinking we used to create them.” Whether Albert Einstein actually said this or not — he certainly said similar things — there is still a significant amount of truth here. Innovation is required if we are to make strides forward, and the government has a big role to play here.

Goal Setting for Renewables

Goals provide focus for innovation, giving today’s entrepreneurs, researchers, and blue-sky thinkers the benchmarks they need to galvanise their efforts.

• Increasing energy mix targets from state governments — Victoria recently raised their “50% renewables by 2030” target to 65%.
• Accelerating increases once momentum begins to build — In the same announcement, Victoria said they would now be targeting 95% renewables by 2035.
• Recalibrating Federal targets to drive progress — The country-wide Federal target was initially 20% renewables by 2020, but Australia, in fact, succeeded in beating this by 4%.
• 43% reduction in emissions between 2005 and 2030
• Net zero emissions by 2050

Direct Investment from the Government

Target setting is useful, but it remains a passive approach to the problem. Active solutions necessitate direct investment from government bodies.

• $20 billion of investment in upgrading electricity grids, ready for renewable transformation
• $200 million of investment to optimise Australia’s rooftop solar production
• A further $100 million of co-investment, delivering 85 solar banks for households
• $3 billion of investment in manufacturing for renewables and the development of low-emission technologies
• $500 million of investment in clean hydrogen facilities and carbon capture hubs and a further $50 million of grants have also been made available for gas infrastructure and carbon capture projects
• $84 million of investment in community microgrids via the Australian Renewable Energy Agency

Initiatives and Programs

A raft of different initiatives and programs are also underway, giving innovators and entrepreneurs the structural framework they need to achieve real results in this sector.

• • The Emissions Reduction Fund, driving towards net-zero targets

<li?Powering Australia, aimed at scaling back on emissions while actively creating jobs

• The Future Fuels and Vehicles Strategy, putting technology front and centre in overhauling the transport sector
• A variety of local and national rebates and incentives for switching to solar power

Australian Firms at the Forefront of Global Renewable Innovation

We’ve looked at some of the challenges Australia is facing in shifting to renewable energy, but we’ve also seen a great deal of progress in this area. This has largely to do with the spirit of innovation in Australia — a spirit that remains alive and well in 2022. MGA Thermal is one of the companies currently driving the Australian market forwards. This innovative startup is creating highly effective energy capture and storage products that significantly reduce energy wastage.

LAVO is another leader in this field. The organisation produces Long Duration Energy Storage (LDES) solutions that are designed to change the way in which we store and handle energy. Using their proprietary and patented metal hydride, the firm is pushing the envelope for what is possible from energy storage.

Other Australian organisations are expanding their scope, achieving successful innovation on these shores and then bringing significant advantages to markets across the world. carbonTRACK — developers of energy management technology — branched out into the UK market in 2022, reinforcing Australia’s position amongst the globe’s leading sustainable energy innovators.

Research Centres and Academic Institutions Driving Innovation Forwards

Australia’s institutions of learning and research provide another crucial piece of the puzzle. Governmental investment and entrepreneurial innovation are vital, but academic research also has an invaluable part to play. Right across the country, teams are laying the groundwork for immense changes in the Australian energy industry — here are just a few examples of what this looks like in practice.

• The Melbourne Energy Institute researches energy systems and materials, hydrogen and clean fuels, and power generation and transport.
• The University of Wollongong hosts the Australian Power and Energy Research Institute, supporting the transition towards clean energy.
• The University of Technology in Sydney is committed to finding pathways to 100% renewable energy in Australia within a single generation.

Creating the Right Conditions to Welcome Global Entrepreneurs 

Shifting towards renewable and clean sources of energy is not a uniquely Australian project — it is a global one. As such, a communicative, collaborative, and cooperative approach is required, with teams from various countries and regions of the world working together to make a real difference.

This is why it is so important to create a welcoming and encouraging environment for innovators and entrepreneurs who wish to work, study, and invest in Australia. The culture and spirit of innovation are certainly strong here in Australia, but, as we have seen, there is more to it than this. In recent years, the government has doubled down on its commitment to clean energy, investing in and incentivising development in this field. The academic and business landscapes in Australia are similarly geared towards fostering new partnerships with forward-thinking organisations.

All of this is increasingly supporting a more international outlook. Cooperation with other major players in the global energy and renewables scene, such as China, has made this clear. China is sometimes viewed as a direct competitor with Australia when it comes to energy — and renewables in particular — but it is cooperation rather than competition that will help our planet enter a new and more positive phase.

This cooperation is already underway. Solar heliostat technology, developed in Australia, is already being deployed in China, thanks to joint operations between our own CSIRO and the Chinese firm Thermal Focus. Meanwhile, Perth’s Curtin University hosts the Australia-China Joint Research Centre for Energy, where scientists from both countries have worked together for over a decade, developing energy outcomes that are mutually beneficial to us all.

It’s this kind of collaboration and international ethos that is powering profound changes in the global energy sector.