{"id":30652,"date":"2025-04-02T00:19:51","date_gmt":"2025-04-02T00:19:51","guid":{"rendered":"https:\/\/northmoregordon.com\/?p=30652"},"modified":"2025-04-02T00:57:33","modified_gmt":"2025-04-02T00:57:33","slug":"australia-82-renewable-by-2030-large-energy-user-challenges","status":"publish","type":"post","link":"https:\/\/northmoregordon.com\/articles\/australia-82-renewable-by-2030-large-energy-user-challenges\/","title":{"rendered":"Australia 82% Renewable by 2030; You\u2019re Joking!\u00a0 Large Energy User Challenges."},"content":{"rendered":"\n<p>Australia has set ambitious 2030 climate goals: cutting emissions by 43% from 2005 levels and achieving 82% renewable electricity in the National Electricity Market (NEM). Northmore Gordon wholeheartedly welcomes this vision and the recent surge in renewable energy investment. However, the latest data, and Northmore Gordon\u2019s experience with large energy users, <strong>reveals a worrying gap between ambition and reality<\/strong> \u2013 progress on the ground is not keeping pace with Australia\u2019s targets.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"936\" height=\"475\" src=\"https:\/\/northmoregordon.com\/wp-content\/uploads\/2025\/04\/image.png\" alt=\"\" class=\"wp-image-30653\" srcset=\"https:\/\/northmoregordon.com\/wp-content\/uploads\/2025\/04\/image.png 936w, https:\/\/northmoregordon.com\/wp-content\/uploads\/2025\/04\/image-300x152.png 300w, https:\/\/northmoregordon.com\/wp-content\/uploads\/2025\/04\/image-768x390.png 768w\" sizes=\"(max-width: 936px) 100vw, 936px\" \/><\/figure>\n\n\n\n<p><em>After steady growth, the renewable share (~39% in 2023) has plateaued amid rising demand. (<\/em><a href=\"https:\/\/cer.gov.au\/markets\/reports-and-data\/quarterly-carbon-market-reports\/quarterly-carbon-market-report-december-quarter-2024\/safeguard-and-australian-carbon-credit-unit-accu-schemes\"><em>CER Quarterly Carbon Market Report December Quarter 2024<\/em><\/a><em>)<\/em><\/p>\n\n\n\n<p>Renewable energy provided roughly 39% of Australia\u2019s electricity in 2023 (up from just 17% in 2017). But in 2024 this momentum has stalled as electricity demand continues to climb. Simply put, <strong>the pace of renewable deployment is not yet on track<\/strong> to hit our targets, despite a strong investor appetite.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><br><strong>Renewables Investment: High Ambition, Slow Delivery<\/strong><\/h4>\n\n\n\n<p>Significant investment is pouring into <a>new<\/a> generation. The Australian Energy Market Operator (AEMO) reported in the <a href=\"https:\/\/aemo.com.au\/newsroom\/media-release\/energy-project-pipeline-continues-upward-momentum-in-december-quarter#:~:text=The%20momentum%20of%20new%20energy,6%20GW%29%20reaching%20full%20output\">December 2024 quarter the energy pipeline continues momentum for large scale solar and wind projects:<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Approvals:<\/strong> 20 projects (~4.9 GW) gained connection approval in Q4 2024<\/li>\n\n\n\n<li><strong>Grid-registered:<\/strong> 11 projects (~1.7 GW) were fully registered (ready to generate)<\/li>\n\n\n\n<li><strong>Operational:<\/strong> Only 4 projects (~0.6 GW) reached full output during the quarter<\/li>\n<\/ul>\n\n\n\n<p>This \u201cconnections scorecard\u201d underscores the bottleneck between projects being planned and projects <a>actually delivering<\/a> energy.&nbsp;<\/p>\n\n\n\n<p>Furthermore, the Federal Government\u2019s Capacity Investment Scheme (CIS) is driving even more capacity (and a lower LGC price). In <a href=\"https:\/\/www.dcceew.gov.au\/about\/news\/australias-clean-energy-transformation-boosted-by-19-projects#:~:text=The%20Minister%20for%20Climate%20Change,to%20power%20three%20million%20homes\">December 2024 under the first tender DCCEWW<\/a> announced:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Tenders awarded:<\/strong> 19 new large-scale renewable projects (6.4 GW combined).<\/li>\n<\/ul>\n\n\n\n<p>This is a tremendous boost \u2013 enough to power ~3 million homes \u2013 the pipeline of projects is clearly not the problem; <strong>the real issue is converting this pipeline into electrons on the grid<\/strong>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><br><strong>Grid Bottlenecks: Large Energy Users Left Waiting<\/strong><\/h4>\n\n\n\n<p>While utility-scale wind and solar farms grab headlines, large energy users attempting to deploy their own clean and electrification energy projects are hitting the same wall. Northmore Gordon works with dozens of large energy users \u2013 from meat processing plants and dairy factories to cold storage facilities, industrial laundries, and food &amp; beverage manufacturers \u2013 and <strong>many are facing 12 \u2013 <a>36 month<\/a> delays to connect new renewable generation or behind-the-meter electrification projects<\/strong>. Even when businesses are eager to invest in on-site solar, electrification, or bioenergy, they often wait 1 \u2013 3 years for the network to catch up. <strong>These delays impose real costs and slow down emissions reduction in sectors ready to decarbonise.<\/strong><\/p>\n\n\n\n<p>In 2024, on behalf of our customers, Northmore Gordon undertook 20 electrification studies (converting fossil-fueled equipment to electric alternatives), and these exposed two systemic barriers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Grid capacity constraints:<\/strong> Many industrial sites simply don\u2019t have the local grid capacity for significant new loads or generation. Businesses looking to electrify boilers, install large electric compressors, or add several megawatts of solar panels often discover the nearest substation or feeder is at its limit. Frustratingly, businesses are being told to wait 2\u20134 years for expensive network upgrades before they can fully transition to clean energy.<\/li>\n\n\n\n<li><strong>Misaligned tariffs:<\/strong> Current network tariff structures do little to encourage using electricity when it\u2019s cheapest and greenest. In today\u2019s market, solar power is abundant at midday \u2013 often causing negative prices, and grid stability issues \u2013 yet many large users see no substantial bill savings for shifting consumption to daytime hours. Demand charges and flat network tariffs mean there is <strong>limited incentive to tap into cheap daytime solar<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p>These two issues derail the business case for electrification and battery storage in many of our studies.&nbsp; The economic reward for using or storing midday renewable energy is weak under present tariffs and connections will take too long.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><br><strong>Rewiring the Nation: A Call to Action for DNSPs and Government<\/strong><\/h4>\n\n\n\n<p>Australia\u2019s clean energy transition will not succeed without proactive support from the grid itself. Distributed Network Service Providers (DNSPs) \u2013 our power distribution companies \u2013 must become enablers of the transition for large energy users \u2013 some are \u2013 but most are not. These companies oversee the \u201cpoles and wires\u201d in each region, and they need the right incentives and regulatory direction to act in the public interest. We urge DNSPs to work closely with industry and streamline the connection process for big customers. Fast-tracking assessments, investing in necessary local upgrades, and providing transparency on capacity constraints are ways DNSPs can directly help.<\/p>\n\n\n\n<p>Meanwhile, the Federal Government has a powerful lever in its $20 billion <strong>Rewiring the Nation<\/strong> fund. This initiative needs to further align policy and investment with the needs of large energy users and renewable developers alike. We call on government to deploy <strong>Rewiring the Nation<\/strong> capital and policy support toward four critical priorities:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Grid capacity upgrades:<\/strong> Accelerate upgrades of network capacity in renewable-rich regions and industrial zones, so both new solar\/wind farms and electrified factories can connect without multi-year delays.<\/li>\n\n\n\n<li><strong>Faster connections:<\/strong> Streamline grid connection approvals and technical studies for large energy users\u2019 projects. Set clear timelines and accountability for DNSPs to deliver connections, shrinking the 2\u20134 year wait times to months instead.<\/li>\n\n\n\n<li><strong>Tariff reform:<\/strong> Overhaul network tariffs to reward consumers for using power when it is cheapest and cleanest. By incentivising use of daytime solar, businesses will shift loads to soak up excess solar generation \u2013 cutting emissions and power costs and helping grid utilization simultaneously.<\/li>\n\n\n\n<li><strong>Support for behind-the-meter projects:<\/strong> Provide targeted funding or incentives for on-site generation and storage at commercial and industrial sites. Behind the meter electrification, renewable and storage, with the right tariffs, will reduce strain on the grid and accelerate emissions cuts in hard-to-abate sectors.<\/li>\n<\/ul>\n\n\n\n<p><br><strong>Australia\u2019s 2030 targets are bold and achievable, but only if we match ambition with action<\/strong><\/p>\n\n\n\n<p>Large energy users are ready to invest in clean energy and be part of the solution. It\u2019s now up to our network providers and governments to clear the path \u2013 by rewiring the nation\u2019s grid, reforming tariffs, and removing bottlenecks \u2013 so that 82% renewables (and beyond) can become a reality. The time for bold, collaborative action is now, to ensure Australia\u2019s energy transition stays on track and delivers benefits for all.<\/p>\n\n\n\n<p><a href=\"https:\/\/northmoregordon.com\/contact-us\/\">Contact us today<\/a> to continue the conversation.<\/p>\n\n\n\n<p>Disclaimer: The information in this article is general only and has been prepared without considering your business&#8217; particular circumstances and needs. You should assess or seek advice from Northmore Gordon Environmental (AFSL 533927) on whether it is appropriate for your business\u2019s objectives.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Australia has set ambitious 2030 climate goals: cutting emissions by 43% from 2005 levels and achieving 82% renewable electricity in the National Electricity Market (NEM). Northmore Gordon wholeheartedly welcomes this vision and the recent surge in renewable energy investment. However, the latest data, and Northmore Gordon\u2019s experience with large energy users, reveals a worrying gap&#8230;<\/p>\n","protected":false},"author":1,"featured_media":30654,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[115],"tags":[69,17,50],"class_list":["post-30652","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-climate-change","tag-energy-efficiency","tag-northmore-gordon"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.3 (Yoast SEO v25.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Australia 82% Renewable by 2030; You\u2019re Joking!\u00a0 Large Energy User Challenges. - Northmore Gordon<\/title>\n<meta name=\"description\" content=\"Australia has set ambitious 2030 climate goals: cutting emissions by 43% from 2005 levels and achieving 82% renewable electricity in the National Electricity Market (NEM). Northmore Gordon wholeheartedly welcomes this vision and the recent surge in renewable energy investment. 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This includes seven years focused on energy management, and greenhouse gas inventory development and mitigation, and six years on renewable energy generation systems. Speak with Craig Morgan to discuss the right strategy and solutions for your next project.\",\"sameAs\":[\"https:\/\/northmoregordon.com\"],\"url\":\"https:\/\/northmoregordon.com\/author\/northmore-gordon\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Australia 82% Renewable by 2030; You\u2019re Joking!\u00a0 Large Energy User Challenges. - Northmore Gordon","description":"Australia has set ambitious 2030 climate goals: cutting emissions by 43% from 2005 levels and achieving 82% renewable electricity in the National Electricity Market (NEM). Northmore Gordon wholeheartedly welcomes this vision and the recent surge in renewable energy investment. 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However, the latest data, and Northmore Gordon\u2019s experience with large energy users, reveals a worrying gap between ambition and reality \u2013 progress on the ground is not keeping pace with Australia\u2019s targets.","og_url":"https:\/\/northmoregordon.com\/articles\/australia-82-renewable-by-2030-large-energy-user-challenges\/","og_site_name":"Northmore Gordon","article_published_time":"2025-04-02T00:19:51+00:00","article_modified_time":"2025-04-02T00:57:33+00:00","og_image":[{"width":1024,"height":474,"url":"https:\/\/northmoregordon.com\/wp-content\/uploads\/2025\/04\/82-renewable-by-2030-web.jpg","type":"image\/jpeg"}],"author":"Northmore Gordon","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Northmore Gordon","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/northmoregordon.com\/articles\/australia-82-renewable-by-2030-large-energy-user-challenges\/#article","isPartOf":{"@id":"https:\/\/northmoregordon.com\/articles\/australia-82-renewable-by-2030-large-energy-user-challenges\/"},"author":{"name":"Northmore Gordon","@id":"https:\/\/northmoregordon.com\/#\/schema\/person\/5137bdba33b546db5c60fa1015d2e727"},"headline":"Australia 82% Renewable by 2030; You\u2019re Joking!\u00a0 Large Energy User Challenges.","datePublished":"2025-04-02T00:19:51+00:00","dateModified":"2025-04-02T00:57:33+00:00","mainEntityOfPage":{"@id":"https:\/\/northmoregordon.com\/articles\/australia-82-renewable-by-2030-large-energy-user-challenges\/"},"wordCount":1043,"publisher":{"@id":"https:\/\/northmoregordon.com\/#organization"},"image":{"@id":"https:\/\/northmoregordon.com\/articles\/australia-82-renewable-by-2030-large-energy-user-challenges\/#primaryimage"},"thumbnailUrl":"https:\/\/northmoregordon.com\/wp-content\/uploads\/2025\/04\/82-renewable-by-2030-web.jpg","keywords":["Climate Change","Energy Efficiency","Northmore Gordon"],"articleSection":["Articles"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/northmoregordon.com\/articles\/australia-82-renewable-by-2030-large-energy-user-challenges\/","url":"https:\/\/northmoregordon.com\/articles\/australia-82-renewable-by-2030-large-energy-user-challenges\/","name":"Australia 82% Renewable by 2030; You\u2019re Joking!\u00a0 Large Energy User Challenges. - Northmore Gordon","isPartOf":{"@id":"https:\/\/northmoregordon.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/northmoregordon.com\/articles\/australia-82-renewable-by-2030-large-energy-user-challenges\/#primaryimage"},"image":{"@id":"https:\/\/northmoregordon.com\/articles\/australia-82-renewable-by-2030-large-energy-user-challenges\/#primaryimage"},"thumbnailUrl":"https:\/\/northmoregordon.com\/wp-content\/uploads\/2025\/04\/82-renewable-by-2030-web.jpg","datePublished":"2025-04-02T00:19:51+00:00","dateModified":"2025-04-02T00:57:33+00:00","description":"Australia has set ambitious 2030 climate goals: cutting emissions by 43% from 2005 levels and achieving 82% renewable electricity in the National Electricity Market (NEM). 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This includes seven years focused on energy management, and greenhouse gas inventory development and mitigation, and six years on renewable energy generation systems. Speak with Craig Morgan to discuss the right strategy and solutions for your next project.","sameAs":["https:\/\/northmoregordon.com"],"url":"https:\/\/northmoregordon.com\/author\/northmore-gordon\/"}]}},"_links":{"self":[{"href":"https:\/\/northmoregordon.com\/wp-json\/wp\/v2\/posts\/30652","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/northmoregordon.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/northmoregordon.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/northmoregordon.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/northmoregordon.com\/wp-json\/wp\/v2\/comments?post=30652"}],"version-history":[{"count":6,"href":"https:\/\/northmoregordon.com\/wp-json\/wp\/v2\/posts\/30652\/revisions"}],"predecessor-version":[{"id":30684,"href":"https:\/\/northmoregordon.com\/wp-json\/wp\/v2\/posts\/30652\/revisions\/30684"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/northmoregordon.com\/wp-json\/wp\/v2\/media\/30654"}],"wp:attachment":[{"href":"https:\/\/northmoregordon.com\/wp-json\/wp\/v2\/media?parent=30652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/northmoregordon.com\/wp-json\/wp\/v2\/categories?post=30652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/northmoregordon.com\/wp-json\/wp\/v2\/tags?post=30652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}