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Australia’s wind power transition stalls amid lack of local manufacturing plan

04 Jun, 2024
Australia's wind power transition stalls amid lack of local manufacturing plan



As Australia’s transition to renewable energy hits roadblocks, industry leaders are calling on the federal government to provide a clear plan for the domestic manufacturing of wind and transmission towers — critical infrastructure needed to meet the nation’s clean energy goals.

Geoff Crittenden, CEO of Weld Australia, expressed frustration over the government’s lack of commitment to building these structures locally.

“For well over two years, industry leaders have been asking the Australian government for a decisive plan to build these essential structures domestically. Instead, what we have received are vague promises and unspecified funding allocations,” he stated.

The demand for wind towers in Australia is immense, with estimates ranging from $20 billion to $80 billion based on scenarios from the Australian Energy Market Operator (AEMO).

However, the government’s recent investments, such as the $1 billion Solar Sunshot program and the $1.7 billion Future Made in Australia Innovation Fund, have focused primarily on solar power, batteries, and hydrogen projects — long-term solutions that may take a decade or more to materialise.

“We need wind towers erected now,” Crittenden emphasised.

Crittenden stated that the Australian government must stop prevaricating and provide a concrete plan for local manufacturing, including timelines, responsible parties, and necessary funding or incentives for manufacturers to invest in their facilities.

The urgency of the situation is underscored by the impending closure of at least half of the remaining 14 coal generators on the eastern seaboard within the next decade.

State governments are growing increasingly concerned about the slow rollout of renewable projects, storage solutions, and transmission lines, leading to interventions like the New South Wales government’s decision to pay Origin Energy up to $450 million to extend the life of the Eraring coal-fired power station until 2027.

Crittenden warned: “Having met with the Australian coal-fired power industry, all their engineers have contingency plans in place to extend the life of their plants.

“It is almost a foregone conclusion that the coal-fired power plants will have to be maintained to ensure the delivery of consistent, reliable power to the Australian public — Australia’s renewables transition is nowhere near ready.”

Weld Australia commends the government’s efforts outlined in the 2024 Federal Budget, including the expansion of the Capacity Investment Scheme and the Future Made in Australia Innovation Fund.

However, Crittenden emphasised that “the rhetoric of green energy and renewable investments is meaningless without the real work and real jobs that come with building the necessary infrastructure”.

As Australia grapples with the challenges of its energy transition, industry leaders are calling for transparency, decisive action, and a commitment to domestic manufacturing to ensure the nation’s renewable energy goals are met in a timely and sustainable manner.

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