Article by James Willis, courtesy of The Daily Telegraph.
01.09.2025
A Malaysian oil and gas giant and one of the largest polluters on the planet, BP, are set to reap the rewards of Australia’s most lucrative net zero incentives, which remain hidden under a veil of secrecy.
Taxpayers will also cover 90 cents in every dollar lost below an agreed value for the operations of a giant Chinese-owned solar farm and two wind farms built by billionaire Andrew “Twiggy” Forrest.
Analysis of the Albanese Government’s flagship Capacity Investment Scheme (CIS) also shows firms based in Spain, Denmark, Japan and the Philippines as successful bidders from more than 20 tenders approved so far.
The foreign businesses have been provided financial protections through the CIS to build and operate large-scale generation and storage projects across the country.
Streamlined and expanded in recent months, the CIS was designed to encourage $73bn worth of renewable energy investment in Australia through a “floor and ceiling” arrangement. It does not apply to fossil fuel proposals.
The elaborate scheme involves the federal government and a company agreeing to minimum and maximum quarterly financial earnings, which are then compared with actual ongoing revenue once the project is operational.
Taxpayers will cover 90 cents in every dollar below the agreed minimum earnings. In contrast, should revenue exceed the maximum earnings, companies will be required to pay 50 per cent of it back to the government.
But as an additional sweetener for the green energy operators – any earnings above the revenue “ceiling” are limited to an “annual payment cap”. The overall agreements run for 15 years.
However, the actual cost of these deals is being concealed from the public, with recent budget papers stating the “maximum liability and estimated payments under these agreements are not for publication due to commercial sensitivities”.
Businesses that apply for these incentives are also forbidden from making “any public or media announcement, or participating in any media reports”, according to official documents.
Nationals MP Barnaby Joyce, who first raised issues about the Capacity Investment Scheme at The Daily Telegraph’s Bush Summit, said the lack of transparency was “absurd”.
“Why is there an exemption to the normal rule and we don’t get to see how taxpayers’ money is being spent?” Mr Joyce said.
“I have to declare a gift over $300. This is the deal of the century.
“It is amazing that we have conjured up a deal to benefit foreign multinationals who would have zero interest in the atmosphere of Australia” Mr Joyce claimed.
The list of companies approved for CIS tenders includes a solar farm in Victoria proposed by Gentari, the green arm of oil and gas business Petronas, which is owned by the Malaysian Government.
The Commonwealth will also underwrite three separate solar farms, including in the NSW town of Dunedoo and in the Upper Hunter, built by a subsidiary of BP, the petrol giant which is consistently named as one of the biggest polluters in the world.
Mr Forrest’s businesses – Squadron and Windlab – have two successful CIS tenders for the Spicers Creek and Junction Rivers wind farms. Chinese company Risen Energy has also been successful in having taxpayers underwrite their Victorian solar project.
The Daily Telegraph put a range of questions to Energy Minister Chris Bowen on Sunday about the foreign companies with large carbon footprints which will benefit from the CIS.
In response, a spokeswoman from his office said: “We welcome efforts to build renewable energy from across the economy, including from companies who are transitioning from a traditional fossil fuel background.”