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Australian Renewable Energy Market Update – February 2023

1 Mar 2023

Sun cable entering into administration. What happened and why? 

Sun cable announced that it was entering voluntary administration, potentially derailing the $20bn+ renewable energy project.

Whilst Sun Cable is confident of finding a resolution, the decision appears to have been driven by differences in the views as to the nature and structure of the project, by key shareholders, Atlassian founder Mike Cannon-Brookes and Dr Andrew Forrest.

The dispute highlights the challenges with both developing and building projects for export of energy and undertaking mega projects with world first technologies or combinations of technologies.

Rooftop solar hits record 20GW

Australia reached the milestone of over 20GW of rooftop solar systems installed in Australia, equating to systems installed on over 3.4 million homes.

Australia has led the world in PV rooftop installation. This is driven by a combination of factors, including favourable solar resource, awareness of environmental impacts and favourable government subsidies under the Small-scale Renewable Energy Scheme.

2022 ESOO update

AEMO released a brief update to the Electricity Statement of Opportunity. Whilst the 2023 ESOO is not due until later in the year, this update flagged the impact of delays to Snowy 2.0 from Dec 2026 to Dec 2027.

The forecast shows that Interim Reliability Measure (IRM) – a measure introduced to reduce the risk of load shedding across the NEM – will be met for all regions until 2024-25. Post 2024-25 both NSW and Victoria exceed the targeted levels indicating there may be instances where there is a shortfall in supply. This highlights the importance of continued investment in these markets.

Did you know?

Australia has the most rooftop solar penetration in the world.