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Energy expert reveals why Australia's net zero future depends on a bold, inverted shift

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30 Oct, 2024

This post was originally published on Sustainability Matters

As political debate over the future of Australia’s energy landscape heats up amid the race to a net zero future, Dr Andrew Barton, an expert in energy innovation, is calling for a bold, united shift that turns the energy market ‘inside out’.

With renewable energy as the base, he’s advocating for an energy market flip mix where gas, nuclear and advanced storage systems could strategically complement renewables to build a resilient and diverse power grid that transcends political divides. But the country must first depoliticise the approach, he warns.

Barton is a senior executive within the Australasia Energy team at Hatch. With almost three decades in energy development across renewables and fossil fuels, Barton stressed the urgency of Australia’s transition. “We need to accelerate our efforts to drive forward the transformation of our energy and power systems.

“Our goal should be to forge a sustainable roadmap immediately, balancing an optimistic drive with a focus on Australia’s unique challenges and advantages.”

Barton, who led work on projects such the $30 billion SunCable AAPowerLink, advocates for a ‘turned inside out’ energy market that prioritises resilience and diversification. By expanding beyond any single power source, Australia can build a grid that not only decarbonises but also circumvents fluctuations in global demand and supply chains.

A balanced approach: renewables, resilience and reliable baseload power

Barton underscores the value of renewables as the foundational power source for Australia, complemented by peaking power from gas, hydro or even nuclear.

“As it stands, there is no one-size-fits-all solution for Australia,” Barton said.

“Right now, every source of energy should be on the table and as the technology continues to evolve.

“But the goal is a resilient, decarbonised grid where renewable energy leads, and fossil fuels bridge peak periods, as we refine technologies for long-duration storage.”

This approach includes exploring nuclear power, not as a baseload — historically its role — but as a potential peaking power option.

“There’s global precedent, like in Canada, for nuclear as a flexible resource. A tech evaluation here could be a game changer if nuclear can meet Australia’s peaking needs,” he suggested.

Harnessing diversity and ditching politics to bolster Australia’s energy future

The Australian Energy Market Operator (AEMO) is responsible for long-term planning and forecasting for the National Energy Market (NEM), as outlined in its biennially updated Integrated Service Plan (ISP). Barton explained that as technology and policy evolve, so too will this forecast for Australia’s energy mix.

His call for a political-free long-term approach to net zero energy strategies comes amid intense debate over renewable energy developments, particularly after the Illawarra in NSW was declared an offshore wind area this year.

Barton stressed that while solar and wind are essential, they alone cannot power Australia. “Solar PV is incredibly cost-effective compared to other sources, but it’s limited by daily production peaks and storage costs for oversupply,” he explained.

“When it comes to that storage, we have solutions for shifting short periods of solar peak generation in the middle of the day to peak demand periods, such as the early evening, but we lack sufficient cost-effective long-duration storage to bridge the gap across the full 24hr diurnal cycle.

“This means solar must be supplemented with energy storage to ensure we can keep our critical infrastructure such as hospitals running for 24 hours a day. A broad mix of energy storage solutions are critical to underpin the variable renewable generation from solar and wind.”

Barton added that grid resilience relies on broad geographic and technological diversity, as well as innovative storage solutions. A diversified supply approach, including offshore wind, decentralises the grid and enhances energy security.

“Shifting away from a ‘hub and spoke’ model allows for a more robust generation system,” he added.

Barton said offshore wind farms have been recently slammed for being expensive, and while there’s truth to that statement, he argues it’s more complicated.

“Offshore wind comes at a price — roughly double what it costs to develop onshore wind — and because of that it has attracted opposition as people think it will drive up power prices. But the cost of power to consumers is determined by the total mix of generation, not a single source,” he said.

“Offshore wind is a lot more reliable as it doesn’t have the same thermal effects that onshore wind can suffer from. Offshore wind farms don’t have the same land availability constraints and are generally closer to major transmission infrastructure connection points. Furthermore, we need the capacity and supply diversity that offshore wind can provide.”

Barton added that onshore wind farms are typically much smaller scale and needed to be located further from population centres. This therefore requires long-distance and high-capacity transmission systems to deliver the power to where it is needed.

Like solar, wind can be unreliable and susceptible to wind droughts, as has been experienced across South-Eastern Australia recently. However, a diverse combination of solar PV (domestic, commercial and utility scale), onshore and offshore wind, along with short- and long-duration storage will contribute a major part of the nation’s renewable energy mix, said Barton.

“Add to this mix peaking power supply from gas and hydro and we have a power generation system that can meet most, if not all, of near-term demand. But is this enough?”

Nuclear as a peaking power solution?

Right now, said Barton, our baseload power is predominantly coal, supplemented with wind and solar renewable generation and gas-fired and hydropower for peaking generation to meet daily power demands.

While the Liberal National Coalition are pushing for Nuclear Energy, Barton said if it could be used as peaking power, this could be a true game changer. A Moltex Energy report in Canada recently argued the same, even pointing its economic feasibility. But the nation has a long way to go yet as it lacks infrastructure, regulatory framework, or capability for nuclear energy right now, said Barton.

“Almost every country relying on nuclear to reach their renewable target is already using it,” he said.

“Right now, we need to understand the regulatory requirements to potentially introduce the technology. We need to closely monitor the evolution of nuclear technology and its associated costs. And we need to understand how nuclear may complement our renewable energy mix.”

Gas and hydrogen: transition fuels for today, preparing for tomorrow

Barton said gas has a transitional role as Australia phases out coal.

“Until renewable technology fully meets demand, gas-fired plants bridge gaps in our system. While hydrogen offers promise, cost barriers remain.

“Green hydrogen could be pivotal in the long term, but today’s green hydrogen tech limits and associated costs position gas as a critical interim peaking solution.

“Right now, we can’t achieve carbon-free energy security until other options are available to provide peaking or flexible generation power for when renewable generation and storage can’t meet total demands across the networks.

“The challenges aren’t insurmountable if we foster informed debate, focusing on both technological and environmental imperatives without divisive rhetoric.”

Dr Andrew Barton is the Director (Project Implementation) of Australia-Asia Energy at Hatch, a global multidisciplinary leader in engineering, operational and development projects in energy, metals, and infrastructure. He has decades of global engineering and project management experience in renewable and oil-and-gas energy development projects. His role at Hatch is to build its capability to successfully deliver energy projects.

Top image credit: iStock.com/Imgorthand

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From coal to clean: accelerating Asia's renewable energy transition

From coal to clean: accelerating Asia's renewable energy transition

With world leaders, climate and environmental scientists and business leaders having gathered in Baku for COP29 — the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) — we’ve been advocating that this transformation poses significant challenges while simultaneously providing opportunities for growth, resilience and innovation.

The role of coal and the need for change

Coal remains the largest contributor to climate change, generating 35% of global electricity as of 2023. The International Energy Agency’s (IEA) net-zero scenario calls for OECD countries to reduce coal’s share in power generation to 14% by 2030, with a complete global phase-out of unabated coal by 2040.

This underscores the fact that achieving global climate goals hinges on a viable energy transition strategy, particularly in Asia, where demand continues to surge.

The need for decarbonisation is stark: Asia’s carbon emissions now account for over half of the global total. The young age of Asia’s coal fleet — about 13 years on average — complicates the shift to renewables, with significant investments still tied up in coal plants. According to the World Economic Forum, policies that streamline and incentivise plant closures or conversions can accelerate the pace of transition.

Economic and environmental challenge

Transitioning to renewables in Asia requires not only technological shifts but also robust financial mechanisms.

We need financing models that incorporate public and private capital, with mechanisms like loans and grants making clean energy more accessible and competitive.

Countries like Vietnam face hurdles such as rigid power purchase agreements that protect coal plants from competition. Overcoming these barriers demands innovative financing, potentially reducing the cost of capital to make renewable projects more viable and less risky.

The move from coal to renewables also requires securing grid stability and resilience. The diversity of resources across Asia — from hydropower in Southeast Asia to solar in China — necessitates tailored strategies for integrating these resources into a cohesive and stable energy grid. GHD is actively involved in helping clients to navigate these complexities by advising on technical planning, decommissioning and the use of renewables like solar and wind.

Action steps to help Asia transform from coal to clean:

Develop robust financing models: Facilitate access to capital with a mix of loans, grants and public–private partnerships to make renewable energy more competitive and scalable.

Strengthen policy frameworks: Governments should adopt supportive policies to encourage investment, ease regulatory restrictions and provide incentives for renewable energy projects.

Invest in grid resilience and smart technology: Modernising grid infrastructure, including smart grids, is essential for integrating renewables and managing intermittent supply efficiently.

Encourage regional knowledge-sharing and collaboration: Cross-border partnerships can accelerate technology transfer, innovation and the development of best practices for transitioning from coal.

Support local workforces and communities: Implement training programs, workforce transition initiatives and local engagement strategies to ensure a fair and equitable transition for coal-dependent communities.
 

Based on this, there are three critical pillars for a successful transition: stable technical solutions, sustainable stakeholder engagement and a strong business case. Every project requires bespoke planning that integrates stakeholder interests, addresses environmental impacts and leverages technical expertise to ensure grid reliability.

A well-defined transition strategy that supports all stakeholders and secures financial backing is essential for a viable energy future.

Creating such a strategy involves evaluating the potential of each project and exploring repurposing opportunities, from battery storage to hydrogen production.

Looking forward: policy, financing and social impact

A successful transition will rely on supportive policies that facilitate investment and foster technological advancements. We need to understand the importance of a ‘just transition’ that balances environmental goals with economic equity, especially in coal-reliant communities.

Communities cannot be sidelined; local stakeholders need to benefit from new economic opportunities in renewables. At COP29 in Baku, GHD has been advocating for a holistic approach, including policy alignment, financial innovation and active community engagement.

The shift from coal to clean energy isn’t merely a goal — it’s an urgent necessity. Through collaboration, innovation and commitment to sustainable development, we can achieve a cleaner, greener future for Asia and beyond.

*Richard Fechner is GHD’s Enterprise Business Advisory Leader, leading the global business in providing strategy, commercial, economic, business case, logistics, policy, regulatory, asset management and transaction services. With over 30 years of experience, Richard has held senior roles in both the private and public sectors, contributing significantly to infrastructure development, investment and delivery across various sectors including ports, agriculture, energy, government and defence. He has advised on approximately AU$150 billion in infrastructure transactions and is a highly skilled infrastructure and business professional with expertise in strategic planning, business management and project engineering.

**Dr Tej Gidda is a distinguished expert in clean energy transitions and currently serves as the Global Leader for Future Energy at GHD. With over 20 years of industry experience, Dr Gidda holds a PhD in Environmental Engineering and is a registered Professional Engineer in Ontario. His work focuses on integrating clean energy technologies into existing systems and developing innovative strategies to overcome challenges related to reliability and affordability. Dr Gidda’s expertise spans hydrogen, renewable natural gas, traditional renewables, energy from waste, energy security and planning. He is also an adjunct professor at the University of Waterloo.

Top image caption: Pagudpud Wind Farm, Ilocos Norte, Philippines. Image courtesy of GHD.

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