Statement On The Federal Government's Capacity Investment Scheme Announcement

“It is a significant commitment that is intended to put Australia back on track to achieve the Government’s policy of 82% renewables by 2030, replacing aging coal fired generation with cheaper renewable energy and driving down power prices.“There is now wide acceptance of the need to accelerate our shift to renewable energy.“Investment in renewable energy has been in gradual decline since the Renewable Energy Target – a policy that delivered substantial new investment - was met in 2020. The rate of investment slowed more dramatically over the past year as a result of higher project costs, frustrating permitting processes, a congested grid and intensifying global competition in the race to net zero.“While renewable energy remains the lowest cost form of new generation, there is a clear role for government to facilitate the enormous levels of investment needed to transition our energy system.“We look forward to working closely with the Federal Government on the detailed design of the contracting mechanism to ensure it is effective and delivers the new investment and lower power prices that are expected.“It’s crucial that any new policy provides increased certainty to investors and the enormous private sector capital and capability that will be essential to Australia becoming a clean energy superpower.“We also continue to advocate for further support for households and businesses to adopt rooftop solar and household batteries that can reduce power bills and further address cost of living challenges.”