ANZ Research also notes some significant updates to key major projects since the September 2021 report. The largest commitment, the $A16.5 billion Scarborough liquefied natural gas (LNG) project and Pluto expansion, received final approval in November, firming up the major oil and gas project pipeline. But a number of projects have been slower to get underway than ANZ Research had factored in.
Positive charge for electricity
Wind and grid solar energy generation in the National Electricity Market (NEM) increased by 20 per cent in 2021, according to the Australian Energy Market Operator (AEMO). This now makes up 17 per cent of the NEM generation mix.
Over the past four years, wind generation in the NEM has more than doubled and grid solar generation has increased almost 14-fold.
After a decline in electricity investment over the past couple of years, activity is turning around. Third quarter work done increased to the highest level (nominal terms) in Victoria and Queensland since late-2018. Work done in New South Wales remained elevated and the state has the largest pipeline of work yet to be done thanks to Snowy Hydro 2.0.