Australia is the world’s biggest iron ore exporter, but the Australian Renewable Energy Agency says ultra-low-cost solar could make it a green iron superpower.
The Australian Renewable Energy Agency has released a white paper outlining the necessity of deploying ultra-low-cost solar energy at an industrial scale to transform the national economy. Although Australia has established widespread domestic rooftop solar and household battery adoption, scaling up utility-scale installations remains a significant financial and logistical challenge.
To address this, ARENA has established an initiative known as the 30-30-30 target, aiming for solar panels with 30 per cent efficiency installed at 30 cents per watt by 2030. ARENA Chief Executive Darren Miller noted that while solar module manufacturing is a minor component of total expenses, heavy civil works, concrete pouring, drilling, steel, cables, and manual labor drive up utility-scale costs.
Australia's large-scale solar projects currently cost roughly 1.5 times as much as comparable installations in China. To overcome labor shortages in remote locations like the Pilbara, ARENA is funding automation technologies such as autonomous robots and drones to handle monitoring and construction tasks.
Among the backed innovators is Luminous Robotics, which has developed autonomous robots named Lumis to position and place solar modules onto racks without human intervention. This technology helps mitigate safety risks associated with workers lifting heavy panels repeatedly in extreme temperatures.
Another supported enterprise, Adelaide-based 5B, produces prefabricated concertina-style solar arrays named Mavericks that are transported in shipping containers and unfolded via forklift. According to 5B chief of staff and solar photovoltaic engineer Alice Lang, prefabrication bypasses traditional on-site assembly, allowing four personnel to deploy about one megawatt of solar daily.
This prefabrication method has been implemented at the Bellevue Gold project in Western Australia to support a hybrid energy system powering mining operations. Alice Lang emphasized that Australia's competitive advantage lies in research partnerships between institutions like UNSW and industry sectors rather than matching China's manufacturing scale.
According to the ARENA report, ultra-low-cost solar could facilitate the development of heavy industries such as green iron, green aluminium, lithium hydroxide, and hydrogen production. Climate Energy Finance director Tim Buckley stated that Australia possesses exceptional solar and wind resources, substantial superannuation capital reserves, and strong export ties to North Asia.
The National Electricity Market currently incorporates approximately 12 gigawatts of utility-scale solar. However, Darren Miller projects that supporting future green commodity export industries will require thousands of gigawatts of remote solar capacity, representing an economic opportunity significantly larger than grid decarbonization alone.
Deployment speed continues to face obstacles including administrative planning, environmental approvals, and social license requirements for transmission lines. Tim Buckley added that investor confidence is further hindered by the influence of vested interests from Australia's established fossil fuel sector within a democratic system.
Renewable energy sources currently supply approximately half of Australia's electricity demand. Darren Miller emphasized that securing affordable electricity will remain critical to the nation's economic competitiveness toward 2050.
Originally reported by ABC News & Headlines – Australian Broadcasting Corporation on Jul 29, 2026.
