The Clean Energy Council (CEC) ‘Clean Energy Outlook Confidence Index’ survey of industry executives on clean energy investment shows long-term clean energy investor confidence is not looking good, largely due to policy uncertainty.
When asked about confidence in investing in renewable energy projects, the results were mixed depending on the state or territory. However, overall the responses indicated an uneasiness about investing in clean energy projects beyond 2020. The report on the survey was published on December 18.
About the Clean Energy Outlook Confidence Index
The CEC surveyed around 60 industry CEOs and senior executives. The participants represented businesses with a combined $17 billion in assets and 3000 employees.
The survey asked participants about their level of confidence to invest in renewable energy projects, such as wind, solar power and battery systems, in the next three years.
Victoria showed the highest confidence at 7.8 out of 10, largely driven by the recent state election. NSW and Queensland followed at 7.3 and 7.0 respectively. WA and NT showed the lowest levels at close to 4 out of 10.
The survey also asked about employee numbers. Eighty-three per cent responded that they expect their staff numbers to go up in the next year. On the other hand, less that 2 per cent said they expect a decrease.
When it comes to business challenges, the top concern was grid and connection access issues, mostly due to the amount of time the process takes.
Participants cited lack of federal policy on energy and climate as number two, while the third concern was attracting the right employees.
Investors need transparency and certainty: CEC
CEC chief executive Kane Thornton said project developers need “transparency and certainty” regarding the time and money needed for projects. He also said that while state governments have filled a policy void, businesses are seeking greater certainty before investing.
One executive surveyed said their response regarding clean energy investor confidence would be a 10 if the federal government “was proactive in supporting the development of renewable energy infrastructure”.
The results appear to be consistent with other research. Earlier this year, energy and industry executives warned that the energy policy vacuum after the NEG was abandoned could quickly kill investment.
Current state of the clean energy industry
According to a recent CEC report, more than 14 GW and $20 billion of clean energy investment is underway in Australia. Thornton described 2018 as a “record year”.
But he also indicated that without the policies and clean energy investor confidence, the solar boom could end.
In the meantime, many Aussie households and businesses have decided not to wait around for government policy decisions.
Instead, they are investing in their own rooftop solar installations to save money long-term on their electricity bills.
