The RBA, in a note published on their website, have backed renewable energy investment stating it accounted for nearly 5 per cent of non-mining business investment at its recent peak in 2018. That peak coincided with the final investment phase of Labor’s 2020 Renewable Energy Target.
This investment has, “supported activity and employment, particularly in regional areas where large-scale renewable generators tend to be located.”
However, because of this Government’s lack of energy policy to drive investment, the RBA confirmed renewable investment is collapsing saying; “the generation capacity of new large-scale renewable projects that reached financial close in 2019 fell by around half compared with 2018,” and will decline further over the next couple of years. This follows other industry reports of an investment collapse between 50 and 60 per cent.
The RBA says the pace of future investment is dependent on factors including government policy.
Unfortunately Australia has Angus Taylor - an anti-renewables minister who is too busy dealing with numerous scandals to recognise what everyone else in the country knows and the RBA confirms; boosting renewables is key to economic recovery.
Scott Morrison and his Government need to deliver a policy which incentivises renewable energy investment, instead all they have is a plan to spend billions of taxpayers’ dollars on expensive, unreliable new coal-fired power stations.
A COVID-19 recovery plan which brings forward investment in new renewable projects will create tens of thousands of new jobs, stimulate regional economies, and deliver cheaper power prices.