A group of clean energy investors, including BlackRock, Macquarie, Snowy Hydro and Squadron Energy, are pushing for coal-fired power to be phased out faster. 

Alongside concerns about energy prices and the looming closure of one of Australia’s largest coal plants, the Clean Energy Investor Group has commissioned a report from consultancy Baringa.

The report warns that the Australian Energy Market Operator’s Integrated System Plan Step Change scenario, as well as federal government modelling from consultancy Reputex, are not commercially credible and are not aligned with limiting global temperature increases to 1.5 degrees.

The report also reveals that the eastern states’ National Electricity Market decarbonisation requires a total investment of $421 billion to align with Australia's 1.5 degree target, which is $116 billion more than the capital requirement in current government and market investment plans. 

Additionally, it highlights the need for a separate carbon budget for the electricity market and for the closure of the last coal plant to be brought forward to 2033 instead of the current target of 2038-39.

Victoria, Queensland, and New South Wales must hit their renewable energy targets earlier than their current deadlines, according to the report. 

It says Victoria needs to hit 98 per cent renewables by 2035, Queensland needs to hit 94 per cent by 2035, and NSW needs to bring its 2030 target forward to 2028.

The Clean Energy Investor group CEO, Simon Corbell, hopes that the report will spur more government action towards becoming a clean energy superpower by 2030. 

The report was funded by Mike Cannon-Brookes’ Boundless Earth, a non-profit that aims to help put Australia on track to become a clean energy superpower by 2030. 

The report’s projections are based on Baringa’s current estimates for the capital and operating costs of different forms of electricity. 

Onshore wind is expected to provide the largest share of new capacity at 115 GW, costing $208 billion, followed by utility-scale solar at 54 GW ($53 billion), rooftop solar at 38 GW ($31 billion), and offshore wind at just 4 GW without more government support.

The report highlights that batteries will play a leading role in storage, but long-duration storage will also be provided by pumped hydro and flexible capacity, which will include gas until green tech such as hydrogen can do the job. 

The full report is accessible in PDF form, here.