Renewable Energy Investment in Australia

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Article Summary and Appraisal
Article 3: Renewable Energy Investment in Australia
The article mainly focuses on the shift towards the use of renewable energy in Australia over the last few years. There has been a great increase in the number of investments being done in the area of renewable energy. Having realized the dangers posed to the environment by the use of fossil fuels and other non-renewable types of energy, the government and other players have started shifting their focus towards renewable energy. In addition to posing danger to the environment, the use of non-renewable energy is not sustainable. The government is facilitating the use of renewable energy by providing some incentives to investors (de Atholia, Flannigan, and Lai, 2020). It is expected that most of the energy being used in Australia in the coming years will come from renewable sources. Large-scale renewable power production has increased significantly since 2016, which has provided plenty of jobs to the local people of Australia. Most firms and industries are also opting to supplement their energy sources with renewable ones.
There are several drivers of investment when it comes to renewable energy. The first driver is an increase in the wholesale prices of electricity. These prices have been on the rise since 2015. The prices are controlled by demand and supply. An increase in the prices is an indication that the electricity demand has grown significantly. High electricity prices may translate to low income for industries and companies due to increased expenses. The best way out is for companies to focus on renewable energy. It is not only cheaper but also sustainable. The second driver is government policies. Whenever there is goodwill from the government, the success rate of projects increase. The national government has a target of achieving numerous amounts of renewable energy. Consequently, investors in this kind of energy receive numerous incentives from the government including reduced taxes and lower setup costs. These investors also receive support from the state governments. The support is through preferential treatment for investors who bid to supply power through renewable means. The other driver is increased costs for generating electricity. Considering that generating renewable energy is way cheaper, most investors would rather focus on renewable energy....