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Cows are seen grazing near a wind turbine at the Altamont Pass wind farm in Livermore, California on May 16, 2007. (Justin Sullivan/Getty Images) Likelihood of reaching “net zero” decades away
Businesses have yet to fully grasp the risks of relying on Chinese supply chains, an issue that will become more critical as the net-zero push sets to increase Australia’s reliance on China, according to energy lawyer Scott Schlink.
Schlink, a partner at Holding Redlich, said that in the “foreseeable future,” Australia would continue to rely on overseas manufacturers for renewable energy components in solar panels, wind turbines , and batteries.
“Production in South Korea and China is a significant part of that import,” he told The Epoch Times.
“A big part of the decision [with manufacturing] comes down simply to the cost per unit of electricity—who’s got the cheapest cost of energy. And so, it quickly becomes a pricing decision, and that puts a huge amount of strain on those companies to aggressively minimise their supply chain costs.
“I’d like to see more Australian industry for manufacturing, but my cynicism comes from the fact that they’ve been companies trying to increase local content for a decade or two in the turbine manufacturing space, and they haven’t necessarily had a lot of success.”
Around 75 percent of the world’s wind turbine manufacturing comes down to 10 companies: Siemens Gamesa, General Electric, Nordex Group, Goldwind, Envision, MingYang, Windey, Shanghai Electric, and CSIC—the latter six based in China. Going Overseas More Cost-Effective
For a country like Australia, with a smaller population and manufacturing base, a local renewable industry is challenging to sustain.“For example, to build gearboxes—we don’t necessarily have the large supply network around that as some other countries have to facilitate manufacturing,” Schlink said.Manufacturing wind turbine blades can also prove quite costly as it requires the […]
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