Large-Scale Solar Policy Roadmap

Australia has five years to get the foundations in place for a sustainable large-scale solar industry or it risks missing out on a huge economic opportunity, Clean Energy Council Chief Executive Matthew Warren said. Launching the Clean Energy Council’s Large-Scale Solar Policy Roadmap in Melbourne, Warren said Australia needed to capitalise on the interest Solar Flagships had generated among international investors, who were sinking billions of dollars into projects in other countries.

In the second quarter of 2011 alone, the US Department of Energy ramped up its investment to $12bn, divided among 12 solar projects. "Once again, we are not at risk of leading the pack, but of falling behind. We need to put an end to the brain drain and keep our brightest solar minds delivering local innovations," he said. "Australia has a proud history when it comes to scientific breakthroughs. We need to harness this and apply it to the new challenges facing us in the global effort to avert dangerous climate change." 

The Large-Scale Solar Policy Roadmap provides a snapshot of current large-scale solar projects and policies across the globe, including Spain, Germany and the US, as well as outlining actions for governments to help reduce current barriers to its introduction. It also calls for a dedication of funds in the next five years to improve Australia’s solar resource data. The document was launched at an event today which included presentations by Federal Energy Minister Martin Ferguson, the CSIRO, the Australian Solar Institute and Bloomberg New Energy Finance.

Although the federal government's $1.5 billion Solar Flagships program would help to put Australia on the map, it is critical that state and federal governments begin working with the industry now to create a favourable policy and investment environment, said Warren.

"There are solid funding commitments from state and federal governments, but very little money has made it into projects on the ground yet," he said. "The critical thing is to get projects built so that we can develop local skills and expertise. This will enable us to learn and innovate, identifying ways to bring the technology down in cost while increasing its effectiveness.

"Australian solar technologies are being rolled out across the world but locally we’re not getting the jobs and other economic benefits that come with these major projects. Figures from Bloomberg New Energy Finance show that around $41.7 bn was invested in clean energy in the second quarter of 2011 alone, but we haven't done enough to attract these investment dollars to Australia. 

"We need to look at new industries beyond the mining sector that can increase our national productivity and help to power the slower half of our current two-speed economy. The next five years are crucial if Australia is to harness its most famous resource, the sun, and once again lay claim to the title of the clever country," said Warren.

Key actions for governments in the next five years include:

• Create a stable policy environment to facilitate investment in large-scale solar projects.
• Clearly plan a pipeline of large-scale solar projects required by 2020, 2030 and 2050 in order to achieve cost reductions and build local capacity.
• Secure long-term sustainable funding for project deployment.
• Provide sufficient support for off-take agreements.
• Develop preconditions for program participation.
• State government support for land acquisition and licensing frameworks, streamlined planning processes and revenue subsidies.
• Facilitate grid connection.
• Improve the quality and quantity of solar resource data.