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https://reneweconomy.com.au/were-trying-to-win-a-drag-race-with-the-handbrake-on-here-are-three-reforms-to-deliver-the-energy-transition/>
"Australia’s energy transition has reached an uncomfortable point.
Energy demand is growing, electrification and data centres are coming, and coal
is progressively retiring. Yet new renewable energy generation and vital
network infrastructure is not being built fast enough.
We are making the infrastructure we need harder, slower and more expensive to
deliver. Investors are losing confidence, while communities are increasingly
frustrated by the pace and impact of development.
It feels like we are trying to win a drag race with the handbrake on.
Some blame renewable costs, particularly wind; others blame the market,
approvals, communities or government processes.
The reality is more complicated. We are not facing one problem, but cumulative
complexity in a system that has become increasingly difficult to navigate.
The real problem is the accumulated risk premium.
Planning delays, connection uncertainty, policy changes, construction costs,
community conflict and poor coordination all add to the risk premium.
Investors do not invest in projects. They invest in risk-adjusted returns.
The higher the risk, the higher the required return. Today, too many risks are
making investment harder and increasing the cost of finance."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
