The Australian Labor government has doubled the number of renewable energy projects approved since coming into power in May 2022, in an effort to accelerate the country’s transition to net-zero emissions. Federal Environment Minister, Tanya Plibersek, noted that 11 projects had been approved by the government in the past ten months, more than twice the number approved by the previous Coalition government. Plibersek attributes the rapid increase in approvals to the Labor government having created an environment of certainty for investors by establishing a clear target of 82 percent renewables on the grid by 2030. However, while promoting renewable energy, the government also states that coal and gas still have a role to play in its energy plan. Plibersek confirmed that 95 projects of various sizes were still waiting for the government’s permission.
The Labor government has, however, faced criticism from environmentalists and the Greens party after approving new fossil fuel projects, including Santos’ plan to open 116 new coal seam gas wells in Queensland. Plibersek responded that the criticism was disingenuous as the project was just a small expansion of an existing project that has been running for eight years. Nonetheless, Plibersek notes that the Labor government is committed to making Australia a renewable energy superpower and has implemented a range of measures to support this, such as signing the global methane pledge and introducing an electric vehicle strategy.
As more renewable projects are approved and come online, Australian households continue to suffer from energy price hikes. The Australian Energy Regulator released the draft version of the default market offer for the 2023-24 financial year, showing a sharp rise in prices for energy consumers on the east coast. The draft DMO is the maximum rate energy retailers can charge residential and small business customers in three regions that are part of the National Electricity Market. If nothing changes, from July 1, NSW households are expected to see a 20.9-23.7 percent increase in electricity prices, while the rates for South Australia and southeast Queensland would soar by up to 21.8 percent and 19.8 percent, respectively.