Australia announced the creation of renewable energy zones on Wednesday by building wind farms and underwater power lines in a bid to increase the share of clean energy fed into the national electricity grid.
Prime Minister Anthony Albanese’s government, which has taken office and has promised climate reforms, will present its budget plan for next year next week. The government’s announcement on Wednesday is the first practical step in the $20 billion rewiring work program to modernize and rebuild Australia’s national power grid.
“The National Rewiring Program has always aimed to create jobs in new energy industries, provide cleaner, cheaper and safer energy and reduce emissions – and that is exactly what is happening today.Prime Minister Albanese stated in the statement.
For example, the state of Victoria, which holds elections next month, will receive A$1.5 billion (US$947.85 million) in concessional financing for renewable energy zones (REZs) and offshore wind development projects, according to the announcement.
The state of Victoria will also receive a A$750 million soft loan to implement VNI West KerangLink, an underwater power link between Victoria and New South Wales, by 2028.
The implementation of the Marinus Link across the Bass Strait between Victoria and Tasmania also received a boost thanks to the government’s promise to finance 80 percent of the project with a soft loan from the Clean Energy Finance Corporation.
The government also announced A$1 billion in loans to rebuild the Tarraleah Power Plant in Tasmania and the Cethana Lake hydroelectric reservoir project.
Australia came close to facing an energy crisis this year that ended with blackouts, with many coal-fired power plants unexpectedly shutting down and others reducing power generation due to a coal shortage. Gas-fired power plants have had to contend with the global rise in gas prices.
