Biden’s IRA: The Struggle To Achieve Australia’s Superpower In Renewable Energy

One of the key components of the IRA is the proposed establishment of a Clean Energy Standard (CES) that requires utilities to increase the share of electricity generated from clean sources, such as wind and solar, to 80% by 2030. This would likely reduce demand for Australian coal, as power plants in the US would have to switch to cleaner energy sources to comply with the CES.

The Australian government has acknowledged the potential impact of the IRA on its clean energy ambitions. Still, Australia, according to Clean Energy Council Chief Executive Kane Thornton, stands to lose thousands of jobs and foreign investment to the US.

“Australia has a prime opportunity to become a clean energy superpower, but the brightest minds and the biggest wallets are now looking to the US for their best opportunity,” says Thornton.

“It is immediately clear the US package dwarfs the level of support Australian governments provide for the clean energy transition. The consequences of inaction have the potential to damage Australian competitiveness across all industries for decades to come.”

In addition, the IRA includes provisions to promote the production and use of electric vehicles, which could further reduce demand for Australian exports of oil and gas. This could have a significant impact on the Australian economy, which is heavily dependent on fossil fuel exports.

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