Economic Perspective 1 May 2026
- 1 day ago
- 3 min read
The Latest Trending Economic News Curated for You by Balmoral Group Australia
Hello Dear Readers,
It's all about energy. A silver lining of the Iran conflict comes through openings in the global market for green iron and steel, with the disruption of several key plants in the middle east creating market opportunities for Australia to tackle. Demands for Chinese solar and clean tech is soaring, especially amongst energy-poor and fossil-reliant countries, and Australia's uptake of EVs, rooftop solar and house batteries continue to grow. Opportunities abound as electrification opens up new industry and innovations such as "vehicle to grid" EV systems shore up power systems. Additionally, new proposed reforms to the National Construction Code (NCC) from the Treasury may lessen administrative and compliance costs for diesel-reliant construction firms. In this week's edition we have a data visualisation of global electricity generation by technology type as context for market shifts.
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Hope you enjoy the articles and have a lovely weekend!
Could the Middle East conflict help Australia catch up in green iron?
The war in Iran is a hit to global low-emissions steel production, with several major DRI-EAF (Direct Reduced Iron Electric Arc Furnace) plants being affected. Subsequently, scrap prices have risen, vessels headed for steel pellet plants have been redirected, and Iran's 11% of global semi-finished steel trade has been waylaid. Australia, as a key supplier of iron ore, could compensate for the loss of global green iron production by entering the market. However, this will require streamlining project approvals, securing offtake agreements and early adoption of hydrogen-based, low-emissions iron production. Read more here.
Energy resilience: Why consumers – and their vehicles – are central to Australia’s energy independence
New work from CSIRO on "integrated distributed energy resources" in the form of EVs, rooftop solar and smart household appliances may improve the security of Australia's grid. A central idea is "vehicle to grid" (V2G) storage, where EVs are plugged into the grid while sitting idle at home, which is where they typically spend over 95% of their time. Large, expensive EV batteries can be put to work assisting system voltage, reducing peak demand and, over time, deferring traditional network upgrades. This includes electric buses and trucks which have big batteries and predictable duty cycles, making them V2G viable and profitable, as well as smaller two-wheeled EVs. The concept can also be expanded to household smart appliances. Read more here.
Is oil king again? China's surging cleantech exports show the opposite is true
Some analysts predicted that the oil shortage would flatten demand for Chinese clean tech exports. However, new data shows the opposite. Chinese solar exports doubled in one month, and across Africa, where the oil shortage's bite is felt acutely, solar tech demand rose 176% across March alone. The top importers have been India and Indonesia, both historically reliant on coal. Instead of tunnel-visioning, nations are securing reliable energy to avoid the next disruption. Global uptake of solar and batteries also opens industry: electric arc furnaces in steel making, electric heat pumps and boilers replacing gas for some chemical and food processors, and trials of heavy duty battery-electric haul trucks in mining and construction. Read more here.
Treasury eyes the National Construction Code (NCC) for reform
The new interim report sets out 5 reforms to update the NCC, aiming to reduce compliance costs, industry friction and support innovation. The reforms include simplifying access and use of the standards, recommitment to a national market by reducing jurisdiction-specific requirements, and toughening of cost-benefit analysis processes. The paper also recommends enabling innovation through scalable uptake pathways regarding new technology and methods, and tailoring of compliance cost portions to building type and project complexity, alleviating costs in the face of spiking diesel prices. Read more here.
Batteries are growing even faster than solar
Higher oil prices may be a driver to for the development of alternative energy sources. The steep spike in battery generation capacity may reflect rapid technological progress, primarily driven by Chinese EVs, ballooning global investment in battery systems amid the green shift, or a combination. This figure shows global electricity generation in TWh per source (vertical axis) by years since passing 100 TWh (horizontal axis), highlighting how batteries are growing at a faster pace than solar.
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