Thought Leaders 2023: Gareth McKay

What are the three biggest challenges or threats facing your industry in 2023?

One of the biggest challenges facing the industry stems from one of the biggest opportunities: the interest and demand in renewables from both a domestic and commercial standpoint. The biggest challenge with this is ensuring the supply chain is solid enough to meet demand.

Another challenge which stems from the exponential demand curve we are experiencing in the short term is the range of new and emerging technologies entering the market. Decades of coal and gas power provision to the population is making way for renewables and as these are all new to the market, there has been no ‘gold standard’ set. In addition to this, it is simple to predict that these technologies will look completely different in years to come.

With the rate of demand not meeting supply of current, proven products from reputable dealers, the threat to the market comes from new entrants taking advantage of a booming industry. These new entrants lack the experience, capability and track record to provide quality solutions that will perform in Australia’s unique environment.

Discuss the ongoing impact of the skill shortages on your industry and solutions being implemented in 2023?

The skills the industry is currently lacking are technical and research skills required to better develop and test emerging technologies. Not only that, but having the skills to then commercialise these products to form a sustainable global standard. Australia should be at the forefront of research into these avenues but I fear we are falling behind.

Solutions Valen is implementing include investing in new products and developing packaged solutions, while continuing to commit to developing our team to technical experts who can educate and provide energy storage solutions to our customers.

What opportunities do you predict for the growth of your industry in 2023?

The growth of battery manufacturing in Australia is a key opportunity to support growth of the industry in 2023. With Australia being the largest producer of lithium metal, we have an opportunity to be at the forefront of changes. We believe the development of cell and BMS manufacturing for lithium batteries and other products will support jobs and the specialisation of new technologies, and will make renewables even more accessible for the local market.

Other opportunities exist with the decarbonisation of the mining sector, moving away from fossil fuels as primary energy generation. Mining is and will continue to be an essential component of our renewable future, and Valen Power relishes the opportunity to help support mining operations across Australia to convert to all-electric operations.

How are you ensuring supply chain resilience during times of global uncertainty?

The Valen Power team is committed to supporting our customers, and one of these measures is to keep stock on hand. As global supply chains became more uncertain over the last few years, Valen has continued to hold large stock holdings in strategic locations around Australia and New Zealand.

Valen Power’s purchasing team also ensures supply chain resilience by sourcing products from multiple geo-political regions, spreading our political risk.

In addition to this, Valen Power supports Australian manufacturers by having an Australian-first purchasing policy for our componentry.

What plans do you have in 2023 for an energy transition to renewables?

Valen has committed to be 100% carbon neutral by 2030 and we have a program in place to support our employees to transition to living carbon neutral lifestyles by 2030. Some aspects of this plan include powering our head office 100% by battery and solar energy, providing a battery recycling program for our customers and supporting our employees with knowledge and the means to support carbon neutral choices in and around their homes.

To support this, 2023 will see the introduction of WeCo — an Italian-designed lithium battery that can be scaled up to grid-scale solution. We look forward to sharing this product with new and existing customers as yet another quality solution for their energy storage needs.

Gareth McKay is Managing Director for Valen Power. Operating since 1999, Valen Power provides energy storage solutions across Australia and New Zealand. A highlight of Gareth’s tenure has been introducing ModX — Valen’s pre-engineered solar package. A salesperson at heart, Gareth enjoys connecting with Valen’s clients and helping them solve their challenges.