Australian renewable energy market investment uncertainty due to Gov’t policy vacuum, says GlobalData
Following last month’s news that the Australian Government has no plans to revise its renewable energy target after 2020, Arkapal Sil, Power Analyst at GlobalData, a leading data and analytics company, offers his view on the implications of this decision for the Australian renewable energy sector:
“The Australian government’s recent decision (Sept 2018) not to revise the country’s renewable energy target (RET) after 2020, in addition to scrapping the National Energy Guarantee (NEG), which aims to reduce emissions by 26% by 2030, has brought about a certain degree of investment uncertainty in the Australian renewable energy market.
“As a result of this uncertainty we may see Australia increase its conventional power capacity in order to maintain its annual base-load power requirements. According to GlobalData, 30% of Australia’s total installed energy capacity in 2017 was generated from renewables, including 10% from solar and 7% from wind power. By 2030, this figure is estimated to be 57% with a compound annual growth rate (CAGR) of 19.5%. However solar PV capacity is likely to decline by a CAGR of 5% to 2030 while overall power demand is expected to increase by 20% from 2018 to 2030.’
“Owing to policy uncertainty and a lack of clarity on the future direction of the national energy sector some large international players are looking to exit the Australian renewable market. The Chinese wind turbine supplier and project developer Goldwind is reportedly looking to move out of the market by offloading its wind and solar assets. This is a significant development as the sector needs private investment to kick start projects with the high nature of their initial capital funding requirements. This is also despite the fact that the country is expected to exceed its 2020 renewable energy generation target of 33,000 GWh.
“Whilst the current uncertainty is limiting investment funding for large-scale renewable projects, smaller state funded projects have largely been unaffected as they strive to achieve their renewable energy targets. Victoria, has a renewable energy generation target of 25% by 2020 and 40% by 2025, while Queensland’s target is 50% renewable energy by 2030. Companies like Windlab, Tilt Renewables, Genex Power, Kalina Energy and others continue to work on state funded renewable energy projects like the 336 MW Dundonnell wind farm in the State of Victoria.
“Any sort of regulatory intervention needs to be carefully thought through so as not to affect the commercial viability of the smaller players which could lead to reducing market competition.”
Seo JungJin: Who is EY’s World Entrepreneur of 2021?
Seo JungJin, founder of biopharma firm Celltrion, which most recently developed an antibody treatment for COVID-19, has been named the EY World Entrepreneur of the Year 2021, becoming the first South Korean in the award’s 21-year history.
Regarded as one of the world’s most prestigious business awards program for entrepreneurs, the EY Entrepreneur of the Year celebrates visionary and innovative leaders from across 60 countries who are transforming the world and fostering growth.
JungJin, who is now honoroary chairman of Celltrion Group, was up against a worthy cast of entrepreneurial competitors, taking the crown from among 45 award winners across 38 countries and territories.
Speaking during the virtual event, JungJin described his own interpretation of entrepreneurship as something that brings together “a group of people toward a common vision, embracing challenges as opportunities and committing oneself to contribute to the greater good”.
Why was JungJin crowned King Entrepreneur?
A South Korean native and now 63 years of age, JungJin founded biopharmaceutical firm Celltrion in 2003. In the nearly two decades since its founding, Celltrion has lived up to its goal of advancing health and welfare for all by developing ground-breaking drugs to treat autoimmune disease, various forms of cancer and, most recently, COVID-19.
The company, which JungJin started with just US$45,000 and five of his colleagues, has since growth to more than 2,1000 employees with sales permits in more than 90 countries and revenues exceeding US$1.69bn.
According to the panel, JungJin’s story is a shining example of the power of an unstoppable entrepreneur to change the world with the pandel moved by both his incredible story and his purpose-driven leadership, innovative mindset and entrepreneurial spirit.
Described by the chair of the EY judging panel Rosaleen Blair as “representing everything an unstoppable should be” from taking on the world’s biggest health care challenges to consistently creating long-term value for his company, JungJin’s story is one of incredible tenacity and perseverance that the judging panel felt most represented the entrepreneurial spirit.
“He’s taken breathtaking risks, both personal and professional, to found Celltrion and grow it into one of the world’s leading biopharmaceutical companies,” says Stasia Mitchell, EY Global Entrepreneurship Leader. “His passion for creating affordable, life-saving health care and flair for tackling global problems has led to many treatments that have helped millions of people worldwide and was especially evident this past year through the creation of a COVID-19 antibody treatment.”
How did JungJin get there?
JungJin's entrepreneurial journey started at an early age when he worked as a taxi driver to get himself through Konkuk University in Seoul, South Korea. After studying industrial engineering, he rose through the ranks of Daewoo Motor Co. before losing his job amid the carmaker’s financial troubles following the 1997 Asian economic crisis.
Following this, JungJin started collaborating with colleagues to explore business opportunities in different industries, though none delivered lasting success. The turning point came after he attended a talk hosted by renowned scholars, which inspired him to focus on the biopharmaceutical sector.
And so he founded Celltrion with just US$45,000 of his savings. The launch of Remsima, credited with being the world's first antibody biosimilar, quickly moved Celltrion up the ranks of the country's fairly underdeveloped pharmaceutical sector. Celltrion followed this success with the launch of drugs for breast cancer and lymphoma that today are being used worldwide.
With ambitions to be the world’s first in different areas, Celltrion has pioneered numerous uncharted areas to great success over the past two decades, most recently responding to the global pandemic by successfully developing an antibody treatment for COVID-19 and working to ensure a timely supply of the safe and effective treatment.
“When I first started, my vision was to help patients gain access to safe, effective and affordable medicines and thereby enhance the quality of people’s lives,” explains JungJin. “The success of Celltrion has enabled me to expand on this while finding new ways to fuel my entrepreneurial drive.”