York Park Group Thoughts

While there was a mandate in seats in NSW for offshore wind, in Victoria, the seat of Wannon remained with the Liberal Party – where local Member Dan Tehan has claimed a mandate to continue opposition.

With policy certainty at a Federal level, the focus is now on the sector and government to build a social license with the communities that surround renewable infrastructure.

The answer to this question isn’t more community funding programs, but government’s investing in the communities. It’s all well and good for a community to be the ‘battery of the nation’ but if they pay the same energy prices, have poor quality roads and lack access to health and education services – where is the value for local communities?

York Park Group believes this will be the challenge that underpins the policy agenda for the next three years.

Ministers

Chris Bowen faced speculation that he would not retain his portfolio after Prime Minister Albanese did not name him following the election victory as one of the key ministers who would not be changed. However, he has been reinstated as Minister for Climate Change and Energy. Companies involved in the green energy transition are pleased to see the return of the Minister as it provides some stability to the sector.

Josh Wilson has also retained his position as Assistant Minister for Climate Change and Energy. This is after his narrow win in Fremantle where Independent Kate Hulett almost unseated the Assistant Minister.

Kate Thwaites has been appointed as Special Envoy for Climate Change Adaptation and Resilience. The Prime Minister noted this role will assist in Australia’s bid to host COP31.

Murray Watt has assumed the role of Minister for Environment and Water, taking on the position from Tanya Plibersek. Minister Watt has a reputation in the Government as a ‘fixer’ and a ‘pragmatic’ minister.

Peak bodies from across the resources sector expressed approval of Senator Watt’s appointment, while the farming industry – still impacted by his decision to halt live sheep exports during his tenure as agriculture minister – has raised some alarm bells.

Election Review

The policies that the Labor Party has announced in relation to the energy sector include:

• $40 million investment in clean energy workers.
  • 2,000 tradies will upgrade their skills each year at the first National Training Centre in New Energy Skills.

• $2.3 billion investment in cheaper solar energy.
  • Savings of up to $4000 per household on battery installations.

• Commitment to a 43% emissions reduction target by 2030. The Albanese Government is yet to release its target for 2035.

The Coalition led a drastically different energy campaign, pledging to build seven nuclear reactors. Despite significant backlash, two Nationals MPs have publicly backed the nuclear plan post the election result.

Queenslanders Clon Boyce and Michelle Landry have called for the Coalition’s energy policy to be re-endorsed; suggesting this policy may not disappear as quickly as first-thought. This sentiment has been echoed by Tim Wilson in Goldstein espousing, “I, in my core sense of belief, believe in the role of nuclear power.”

Policy Continuation

Looking back on what the Albanese Government delivered for the energy sector during its last term in government that it will continue to build on:

• The Capacity Investment Scheme. This began in 2023 and aims to underwrite 32 gigawatts (GW) of new renewable energy projects, including wind, solar, and battery storage.
• Launch of the second 6-gigawatt tender and rollout of the Home Battery Scheme.
• Implementation of the recommendations from the Nelson panel on Australia’s electricity market design.
• The $20 billion Rewiring the Nation scheme which was launched in 2022 to upgrade the transmission grid.
• The percentage of energy sources from renewables was 35.9 per cent in 2022 and was up to 39.4 per cent in 2024. This figure will continue to increase.