Rio’s gigawatt scale wind and solar deals shrink generation gap for 2030 renewable target

The huge gigawatt-scale wind and solar deals announced by mining giant Rio Tinto for its Australian refineries and smelters has dramatically reduced the so-called “generation gap” for the country’s ambitious renewable energy target.

The latest data released by industry analysts at Green Energy Markets suggest Australia still needs another 29,001 megawatts (MW) of new renewable energy projects, capable of generating around 80,514 GWh of energy per annum, to meet the 82 per cent renewables target for 2030.

GEM says this gap has reduced by a “remarkable” 8,744GWh since last quarter’s report, due mainly to the big contracts announced by Rio Tinto this year.

These include long term power purchase agreements (PPAs) with the proposed 1,400 MW Bungaban wind project and the 1,100 MW Upper Caliope solar project, both in Queensland.

Their location means that Queensland Labor government now has enough projects in construction or contracted to achieve its “official” target of 50 per cent renewables by 2030, and also its asipirational target of 60 per cent renewables by 2030.

The situation remains largely unchanged in other states, where new project and contracting has stalled as developers jockey for position in the upcoming auction for the Capacity Investment Scheme, which will offer 6 GW of wind and solar capacity in the largest auction to date in Australia.

GEM notes that most other states are behind on their own individual targets, and collectively need another 13 GW of capacity to meet them. A total of 23 GW of new capacity will be offered through the CIS, with another 9 GW (around 36 GWh) of storage.