Triple Threat: Renewables on the Rise, But Policy Needs a Boost

Imagine a world powered by clean energy – a future where the sun and wind are our primary sources of electricity. A recent report by the International Energy Agency (IEA) paints a surprisingly optimistic picture. Existing government policies from 150 countries, including Australia, could lead to a remarkable tripling of global renewable energy capacity by 2030.

This translates to a staggering amount of clean energy – nearly 8,000 gigawatts (GW) of new solar panels, wind turbines, and other renewable technologies added to the grid by the end of the decade. For everyday Australians, this means cleaner air, a more stable climate, and potentially lower electricity bills in the long run. Businesses can benefit from new opportunities in the booming renewable energy sector, while wealthy individuals who invest in clean energy technologies could see their investments flourish.

For those familiar with the complexities of energy policy, the news is a bit more nuanced. There's a gap between ambition and reality. While existing policies point toward a bright future, the official climate pledges submitted by these same countries (called Nationally Determined Contributions or NDCs) tell a different story. These pledges focus primarily on reducing greenhouse gas emissions and fall short of the renewable energy targets needed. They only account for 1,300 GW of additional renewable capacity – just 12% of what's required to achieve the 2030 tripling goal.

Here's a technical breakdown:

• Gigawatt (GW): This is a unit of electrical power equal to one billion watts. Think of it as a giant bucket overflowing with clean energy!

The good news is there's a solution. Countries can bridge this gap by aligning their NDCs with their existing policies and setting more ambitious renewable energy targets. If they update their NDCs next year to reflect current plans and estimates, they could reach a significant portion (around 70%) of the 2030 tripling goal (approximately 11,000 GW).

For Australia, this means aligning its current NDC target with the federal government's ambitious 82% renewable energy goal by 2030. While Australia ranks third in the Asia Pacific (excluding China) for renewable energy ambition (with a target of 98 GW by 2030), slower capacity growth compared to previous years raises concerns.

A recent announcement by the Australian government regarding a 6-gigawatt (GW) tender for new wind and solar projects could revitalize the market if successful. This multi-billion dollar investment signifies a commitment to a cleaner energy future.

China's massive target of 1,200 GW of solar and wind capacity this decade dwarfs those of other countries. This target alone accounts for over 90% of all renewable capacity mentioned in NDCs. They're on track to surpass this goal by 2023, with their capacity projected to be a staggering 2.5 times its 2022 level by 2030.