Australia’s clean energy sector calls on government to remove energy market barriers

Facebook
Twitter
LinkedIn
Reddit
Email
Solar homeowners not exporting energy to the grid should be treated the same as other energy customers. Flickr: Coop biodiversity and Landscape

The Clean Energy Council (CEC), a body representing the renewables industry in Australia, has written to federal and state government ministers citing various barriers to the progress of clean energy in the country.

The letter said: “Not only has progress on energy market reform lagged behind the rapid advancement in new technologies, but some of the reforms that have been prioritised have been at odds with ensuring a level playing field within the energy market.”

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

CEC said the rapidly growing commercial solar PV sector and declining energy storage costs mean that government should focus on maximising the efficiency of renewable energy investments.

It recommended a range of actions to overcome institutional barriers and market distortions that are disproportionately benefitting incumbent technologies.

This included establishing grid connection processes that embrace the technical capabilities of combining renewables and energy storage. Standards for this kind of grid connection must also be developed along with frequent reporting of the performance of these technologies.

It is also important to ensure that customers who install non-exporting renewable energy and energy storage systems are not treated any differently to other customers.

For example, Western Australia state utility Synergy recently proposed extra billing for the state’s 191,000 rooftop solar owners, claiming there is a flaw in the fixed charges element of electricity tariffs, which results in many standard electricity consumers paying far more for their power than they should be.

However, solar homeowners labelled the proposals as an unfair “sun tax”.

CEC also cited the proposed Optional Firm Access (OFA) reforms as a major barrier. OFA would change the way that electricity generators access the transmission grid and cause new large-scale generators to pay for a specified level of ‘firm access rights’. However, firm access rights would be largely grandfathered to existing generators, so the existing fossil fuel fleet would receive a sanctioned competitive advantage when compared with new renewables, which would face increased costs and risks.

CEC said: “If implemented, OFA would unfairly discriminate against large-scale renewable energy generators at a time when barriers to the market’s transition to cleaner energy sources need to be removed, not created.”

Ultimately, among a range of recommendations, CEC said that Australia needs to reprioritise energy market reform to address the host of barriers to clean energy as soon as possible.

21 October 2025
New York, USA
Returning for its 12th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.

Read Next

July 4, 2025
Australian retailer AGL Energy has confirmed its acquisition of South Australia’s Virtual Power Plant (SAVPP) from Tesla.
July 2, 2025
A new state-owned green bank, the Energy Security Corporation (ESC), has launched in New South Wales, Australia, with an initial funding allocation of AU$1 billion (US$640 million).
July 2, 2025
Indigenous-led renewable energy company Yindjibarndi Energy Corporation (YEC) has submitted plans for a hybrid wind and solar PV renewable energy project to the Australian government’s Environment Protection and Biodiversity Conservation (EPBC) Act.
July 2, 2025
Robotics company Luminous has received AU$4.9 million (US$3.2 million) via Australia’s Solar ScaleUp Challenge to support deploying its ‘LUMI’ technology at utility-scale solar PV power plants.
July 1, 2025
A five-year research initiative is underway in Australia to test the viability of floating solar systems on irrigation dams.
June 30, 2025
Australian module manufacturer Tindo Solar has secured a 30MW solar module supply agreement to power Australia's first "net zero pipeline”.

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 22, 2025
Bilbao, Spain
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK