The Canadian-Australian Chamber of Commerce’s latest Energy Luncheon held in Perth on the 7th of August brought together industry leaders to discuss critical developments in energy. We discussed the energy transition, the complexities of renewable integration, and the challenges of policy alignment between governments.
PICTURED (left to right): Kelvin Koay (Vice President, Growth Australia – TransAlta Energy (Australia)), Robert Millard ( Managing Director & Vice President – Australia – TransAlta Energy (Australia)), John Kousinioris (CEO – TransAlta), Noel Ryan (Assistant Coordinator, Market Development and Coordination – DEMIRS), Brendan Clark (Managing Partner – International – MinterEllison and CACC Director), Mel Wharton (CEO – CACC), and Amanda Frodsham (Group Manager, Finance and Corporate Administration – TransAlta Energy (Australia))
A Shift Away from Coal
The global trend toward phasing out coal was a central point of discussion. Speakers reflected on how, just eight years ago, some Canadian companies were responsible for significant portions of the country’s emissions due to coal-powered plants. The transition away from coal has been dramatic, with emissions dropping by 30 megatons annually for some companies after shutting down or converting coal plants to natural gas. Despite these advances, achieving Canada’s Paris Agreement commitments remains a challenge, with concerns that the country is unlikely to meet its 2030 targets.
The Economics of Renewables and Energy Storage
The cost of renewables—especially wind—has risen significantly. This has affected investment confidence, with some projects experiencing delays or cancellations due to financial and policy uncertainties. While there is optimism that storage solutions will eventually become more cost-effective, current high prices and inefficiencies have slowed down. Our guests stressed that policy clarity and market redesign are essential to reignite investor confidence.
“Three-Legged” Energy Transition: Reliability, Affordability, and Clean Energy
A recurring theme was the need to balance the “three-legged stool” of energy, which must be reliable, affordable, and clean. While the past decade has heavily focused on the ‘clean’ component, experts noted that reliability and affordability have been neglected, leading to issues such as energy price spikes and grid instability.
The Economics of Renewables and Energy Storage
The cost of renewables—especially wind—has risen significantly. This has affected investment confidence, with some projects experiencing delays or cancellations due to financial and policy uncertainties. While there is optimism that storage solutions will eventually become more cost-effective, current high prices and inefficiencies have slowed down. Our guests stressed that policy clarity and market redesign are essential to reignite investor confidence.
PICTURED (on the right): John Kousinioris (CEO – TransAlta)
Policy and Market Challenges
In both Canada and Australia, the complexity of the regulatory landscape is difficult to navigate. The pause on renewable developments in Alberta sent shockwaves through the industry, halting numerous projects. Additionally, the redesign of energy markets, including changes in transmission rules and new price caps, has complicated investment and planning. These shifts are seen as necessary but slow-moving, adding uncertainty for companies trying to adapt.
Investor Confidence and the Road Ahead
Investor confidence in renewables has decreased, as many companies now see execution risk of projects eroding already low margins. As a result, without long-term policy stability, the energy transition could continue to face delays, increasing the risk of blackouts and higher costs..
The luncheon highlighted the need for a coordinated approach to energy transition, one that ensures reliability and affordability are not overlooked.
The Canadian Australian Chamber of Commerce (CACC) is a non-profit, volunteer based organisation that aims to bring businesses together to facilitate a strong environment for economic trade and investment between Canada and Australia.
Written by Juli Bellinge
CACC Western Australia Committee
