Australia needs bigger renewable energy network, infrastructure agency says
The Age
Feb 26 2021

The federal government’s independent infrastructure adviser wants a massive expansion of renewable energy zones across Victoria, NSW and Queensland, saying more large-scale wind, solar and hydro projects are needed to secure the nation’s future energy needs.   

In its latest priority list, released on Friday, Infrastructure Australia has itself added as high priorities both more renewable energy zones and a ramp-up in spending on dispatchable energy that includes batteries and large-scale pumped hydro.

Infrastructure Australia says there is scope for a huge increase in investment in renewable energy zones to help offset the retirement of coal-fired power stations in coming years.


Every year, the agency lists what it sees as the major infrastructure needs of the country.

This year, it has expanded its list by a record 44 new proposals, covering everything from wastewater treatment to social housing and railway crossings. The total list of projects now has a combined value of at least $59 billion.



It has added five priority projects: a bypass for the NSW Central West city of Parkes, an upgrade to the Prospect Highway in western Sydney, a major road bridge in suburban Perth, a ring road around the WA regional centre of Bunbury and a substantial upgrade to a bridge over Canberra’s Lake Burley Griffin that links the city’s north and south.

But the agency went much further in terms of high priority initiatives it believes need to be financed to deal with emerging issues.






Treasurer Josh Frydenberg has announced in his budget speech that $14 billion will be invested in new infrastructure projects and create 40,000 new jobs.

While states have announced plans for 14 renewable energy zones – regional areas with the highest potential for renewable energy development – Infrastructure Australia believes many more will be needed.

There is extreme tension within the federal government about an expansion of renewable energy sources and storage, with support in some parts of the Coalition to lift investment in coal-fired and other fossil-fuel sources.

The agency found the national electricity market would “require significant new grid-scale renewable energy generators to replace retiring thermal generation facilities”, almost all of which are coal-fired power stations.

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It also listed increased capacity to link renewable energy sources, particularly between energy storage locations, as a high priority. This includes direct links between Queensland and NSW, South Australia and NSW, and Tasmania and Victoria.

The agency said there would also need to be “significant investment” in dispatchable energy storage to support renewables and offset the “future retirement of coal-fired generators”.

While Infrastructure Australia said there would need to be a diverse mix of technologies to support the national energy market, it highlighted potential options around batteries, large-scale battery storage systems and pumped hydro.

Infrastructure Australia chief executive Romilly Madew said the infrastructure needs of the country had changed following the coronavirus pandemic.

“The importance of a robust, evidence-based investment pipeline has only increased as we look to recover from the dual health and economic crises of COVID-19 and grapple with further shocks and stresses including floods and bushfires, long-lasting drought and a changing climate,” she said.

Romilly Madew, CEO of Infrastructure Australia, says there has been a record number of projects added to the agency’s priority list.


“We are at a crossroads between addressing existing infrastructure gaps and prioritising investments that will secure our future prosperity, with abundant opportunities to deliver infrastructure that responds to community needs.”

New Victorian initiatives backed by the infrastructure agency include upgrades to recycled water supply in South East Melbourne to help avoid longer-term water shortages wrought by climate change, population growth and ageing assets.