October 20, 2020 Read More →

Australian COVID recovery plan ignores market preferences

Solar Quarter:

The Australian government’s plan for a gas-fired economic recovery from COVID-19 ignores the market’s clear preference for renewables over fossil fuels.

That’s the conclusion of a new note from the Institute for Energy Economics and Financial Analysis (IEEFA) that argues Australia could learn from the experience of U.S. oil and gas capital Texas’ pivot to renewable energy.

“Texas and Australia have much in common,” says the report’s co-author Clark Butler, an IEEFA guest contributor and corporate adviser in the technology and finance sectors. “They have similar sized populations and economies and are hugely invested in resources extraction. Both have thriving renewable energy industries, powered by market investment, while gas is failing.

“A key difference, however, is that the Australian government is planning to expand and subsidise the gas sector while the market is clearly signalling that backing fossil gas makes no financial sense.” 

[Ashwini Chikkodi]

More: IEEFA Suggests Australia To Learn From Texas’ Embrace Of Clean Energy

Posted in: IEEFA In the News

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