From Fairfax:
Australia is perfectly placed to become the next global superpower of renewable energy, the “Saudi Arabia of solar” for the coming century.
We have an abundance of sunlight to fuel solar power and wind to power turbines, plus enough geographical space, modern infrastructure and a stable political system to house such an industry on a massive scale.
But if Australia is to realise its remarkable renewable energy wealth, (see chart below, published by the Melbourne Energy Institute, revealing its world-beating solar exposure as indicated by the lighter colours on the map), banks and investors will need to active players.
AdvertisementAnd that is where the $10 billion Clean Energy Finance Corporation – again under fire by the Abbott government – is absolutely crucial.
It’s a nice idea. In fact it’s such a nice idea that fifteen years ago it was coming true. Australia held an huge global lead in solar intellectual property much of it based around the School of Photovoltaics at UNSW.
However, a few years later that IP was seeding gigantic corporations in China and Germany. A decade ago, 10 of the largest 12 global solar firms were already operating using Australian derived IP.
But there are no gigantic Australian solar businesses. The IP couldn’t be commercialised here owing to a lack of capital, the lack of any viable market given the resistance that the Howard government to global warming and Australia’s deeply uncompetitive economy.
We could have been the Saudi of solar. Or, we could have been the Silicon Valley of solar, pulling in huge revenues from licencing deals but manufacturing elsewhere.
But instead we are the sad importer of IP and products that we ourselves invented.
The CEFC was never going to overcome this history. It was really just about financing the development of clean energy power in Australia.
