NEW DELHI: Brookfield Asset Management has signed a Memorandum of Understanding (MoU) with Reliance Industries Limited (RIL) to explore opportunities to manufacture renewable energy and decarbonization equipment in Australia.
The purpose of the MoU is to accelerate and de-risk Australia’s energy transition by enabling it to locally produce clean energy equipment, such as PV modules, long-duration battery storage, and components for wind energy. Under the terms of the MoU, Brookfield will work with Reliance to explore avenues of direct capital investment and development of skills, knowledge and expertise in the renewable energy sector of Australia to facilitate the nation’s transition to a net zero future.
Both companies will evaluate the establishment of advanced operations in Australia to make or assemble equipment used in the construction of renewable energy projects supplying equipment to all players in the market including Origin Energy Markets.
"At Reliance, we are firmly committed to the mission of creating a global clean energy ecosystem that is both beneficial to humanity and compatible with nature. Towards this end, Reliance is pursuing opportunities for investment in India and globally with great enthusiasm and passion. We are confident that Reliance and Brookfield will explore avenues in green energy in Australia, accelerating the nation’s transition to a Net Zero future and providing a fillip to the global green energy movement," Anant Ambani, Director, Reliance New Energy Limited.
Reliance has strong expertise in solar panel technology and long-duration battery storage technology. The MoU with Reliance is one of the key initiatives being undertaken by Brookfield to bring global manufacturing technology and expertise to Australia.
Luke Edwards, Head of Brookfield Renewable Australia, said that Australia has a proud history of manufacturing and an abundance of raw materials, but the industry is not currently cost-competitive.
"The energy transition creates an opportunity to bring advanced manufacturing processes created offshore to Australia, which would secure the supply of critical equipment for the transition to help drive down Australia’s emissions faster and contribute significantly to job creation," he said.
"We want to help kickstart a new era in local manufacturing that will benefit domestic renewables developers, including Origin Energy Markets, and many communities around Australia. We are establishing these types of global partnerships in manufacturing now to allow us to get started as quickly as possible given the ever-reducing timeline for Australia to reach its first emissions-reductions targets in 2030," added Edwards.
The MoU with Reliance intends to support this investment to ensure a consistent and adequate supply of the clean energy equipment required to develop up to 14 GW of new, large-scale generation and storage capacity in Australia.
Independent analysis undertaken for Brookfield indicates the establishment of onshore sovereign manufacturing capability for the energy transition has the potential to create approximately 18,000 direct and indirect jobs, many in regions most impacted by the transition such as the Hunter Valley in New South Wales and the LaTrobe Valley in Victoria