Australia has all the ingredients to become a superpower in this space

Nowadays, it’s quite easy to get swept up in the negativity around our economic plight. Living costs are a very real concern, as are increasingly unaffordable house prices. But, as Australians, we’re also quite fortunate.

Our economy has enjoyed an unprecedented run of growth, we’re highly educated, we’re resource-rich, and we have opportunities – one of which lies in energy creation.

As Darren Brown, Co-Managing Director, Renewables Australia at Octopus Investments tells Livewire's Chris Conway, there is “a really unique opportunity for Australia to become a superpower in renewable energy”.

Why is that the case? 

In short, we have the wind and sun... and we have the land. 

“When you think about Australia, we've got such a large land mass. One of the wind farm opportunities that we acquired at an early stage is on 28,000 hectares of land – that’s the equivalent of 14,000 MCGs”, says Brown.

“Some of our Asian neighbours and even the UK, are looking to offshore wind to be able to continue to transition to renewables because they don't have the land mass that Australia does, or the solar or radiance to be able to build these large onshore solar farms and wind farms”.

A game of Tetris

While the wind will blow, the sun will shine, and we have the land mass, the future of energy that Octopus is positioning for resembles a game of Tetris. That is, fitting all the key pieces together in the most efficient way.

Octopus is not interested in buying a wind farm here and a solar farm there. They are far more interested in having a complementary suite of assets that help ‘firm up’ the energy supply—all of which take account of the data, i.e. balancing needs with production.

For those unfamiliar, 'firming' involves integrating solar and wind with battery storage to provide a consistent energy supply, addressing the intermittency of renewable sources.

Recent rule changes by the energy market operator have enabled the combination of solar farms with batteries and wind farms with batteries, supporting the creation of firm green energy.

“The future of renewable energy is about creating firm green energy”, says Brown

“You do that by combining renewable sources. Having the ability to create solar and batteries together, in a combined manner through these rule changes that support it, is really exciting - and it's an area that Octopus pivoted its portfolio to three years ago”.

Investor demand and outlook

According to Brown, there is strong investor interest in renewable energy, driven by the closure of coal-fired power plants and the global shift towards electrification, including the rise of electric vehicles.

Industries increasingly seek clean, firm, renewable energy throughout their supply chains, indicating a shift towards sustainability in production processes. One example is the mining sector, where end clients are demanding that the entire production process be powered by green energy.

Because of such seismic shifts, Brown is optimistic about the future.

“The world is being electrified”, says Brown emphatically, adding that Australia has the potential to become a leader in renewable energy and the downstream outputs such as green hydrogen – which require huge amounts of clean energy to produce.

Listen to the podcast

The conversation highlights the transformative changes in the energy sector, the strategic initiatives underway, and the opportunities for investors in the renewable energy market in Australia.

Brown's unique perspective, gained from his experience in both fossil fuels and renewables, provides valuable insights into the industry's evolution and the potential for long-term growth in the renewable energy space.

Note: This episode was recorded on 29 August 2024. You can watch the video or listen to the podcast below. 

Other ways to listen

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Timecodes

0:00 - Intro
1:07 - A career in energy
2:55 - A new challenge
4:27 - Octopus' investment philosophy
6:24 - An Australian story
9:20 - The sun will shine, and the wind will blow... but land is key
12:35 - Recent developments in renewables
14:46 - Investor appetite for renewables
16:42 - Demands from industry
18:08 - Firming up supply
19:44 - Recent milestones for Octopus
22:27 - Billion-dollar batteries and long-term planning
24:39 - Competing on a global scale
26:52 - Messages for those with a different view
29:01 - Coexistence: fossil and renewable energy
30:37 - A big win or loss and what you learned
32:40 - What are investors getting wrong about energy?
35:27 - An investment for the next five years

Managed Fund

Octopus Renewable Energy Opportunities Fund (OREO)

Alternative Assets

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Managed Fund

Octopus Australia Sustainable Investments (OASIS)

Alternative Assets

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