Introduction

The report finds that Australian businesses continue to struggle with rising power bills caused by increasing gas exports, overinvestment in the electricity network, and a lack of coherent national climate and energy policy. However, the report highlights that renewable energy provides an effective solution for businesses struggling with these issues.

Renewable energy powering Australian business

The report highlights a boom in the renewable energy sector in Australia. More than 5,000 megawatts (MW) of renewable energy projects like wind and solar farms were under development in 2018. Renewables are projected not only to bring down electricity prices but contribute $40 billion to the Australian economy by 2040. However, despite policy uncertainty, big businesses continue to invest in renewables. For instance, Telstra is building a 70MW solar farm, GFG Alliance, the owner of Whyalla Steelworks, in South Australia, is planning to invest in 520MW of renewable energy generation and storage, while Sun Metals in Queensland are building a 116MW solar farm.

Businesses are slashing their power bills with renewable energy: Investing in renewables directly to combat energy costs and emissions is increasingly gaining traction with businesses around the world, and Australia is no exception. The report highlights that over 50% of Australian businesses plan to increase their investment in renewable energy within the next three years, and 40% of them are considering buying, building or investing in new renewable energy projects.  Australian businesses, including agricultural organisations, food producers, wholesalers, warehouses, manufacturers, and healthcare facilities, have invested in rooftop solar to achieve savings on their power bills.

Local and State Governments are supporting business investment in clean, affordable and reliable renewable energy

Through initiatives such as the Sustainable Melbourne Fund, local and state governments are supporting businesses in Australia to invest in clean, affordable and reliable renewable energy. The Sustainable Melbourne Fund provides low-cost finance to businesses for investment in sustainability programmes, including renewable energy. This programme has saved businesses millions of dollars in reducing energy bills and helped implement various renewable energy projects across Australia.

A variety of businesses are going renewable

The report cites various businesses – piggeries like Tip Top Butchers in Melbourne, and mining companies like Mt Isa in Queensland, that have installed rooftop solar systems to lower their energy costs and secure their supply. Various councils across Victoria, including Greater Shepparton, have joined the Sustainable Melbourne Fund, making it easy for businesses to access funding for investment in sustainability initiatives.

Recommendations

The report highlights the benefits of switching to renewables, notably reduction of energy bills and carbon emissions. Provision of low-cost finance methods, by state and local governments, to support firms to finance their transitions to sustainable operations is also highlighted. The report recommends that the Australian Government should also establish a new Clean Energy Target and a level playing field for renewable energy generation.