The Clean Energy Council (CEC) sees US Inflation Reduction Act (IRA) as having sparked off an international 'clean energy arms race' that could be detrimental to the country's economy and calls for a 'coherent masterplan' from the Federal Government that's currently seeking detailed analysis on the implications of the US policy support.
Specifically, the association wants the Australian government to take 'appropriate action' in its May Budget. "The government should learn from Joe Biden and use the May Budget to promote investment and entrepreneurship. This will signal to the top energy minds that Australia is the place for career progression and innovative projects," said CEC Chief Executive Kane Thornton.
The $369 billion package that IRA is, it has triggered a chain of solar PV manufacturing announcements from both domestic as well as international players for the entire value chain (see Solar Wafering Tools To Be Made in America Soon).
Pointing this out CEC says the US policy is attracting investors in the clean energy space, dwarfing Australian government support to clean energy transition' because of which Australia stands to lose out in the race to become a clean energy superpower. The country is losing thousands of jobs and significant international investment to the US.
"The consequences of inaction have the potential to damage Australian competitiveness across all industries for decades to come," urged Thornton.
According to the CEC, the federal government has tasked Dr Alan Finkel, once the country's chief scientist, to present a detailed analysis on the implications of the IRA.
Notably, following the IRA and India's Production Linked Incentive (PLI) scheme for domestic PV manufacturing, European industry also lobbied hard for the local industry to be supported leading to the European Commission announcing the Green Deal Industrial Plan for clean energy technology, whose details are yet to be finalized (see EU Promises Green Deal Industrial Plan For Clean Technology).
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