The Economic Perspective 26 June 2026
- 2 hours ago
- 3 min read
The Latest Trending Economic News Curated for You by Balmoral Group Australia
Hello Dear Readers,
Last week Balmoral Group's Valerie Seidel and Laila Racevskis attended the World Biodiversity Forum in Davos, Switzerland, and heard about topics ranging from the strategic nature of sand reserves to new NASA data sources to track biodiversity progress. A key them was measuring restoration progress, not just loss. The team presented on our recent research into Australian supply chains and biodiversity metrics, and monitoring natural capital using advanced technology. Reach out if you are interested in discussing more!
This week's articles focus on energy, water and council planning. AEMO modelling shows that rapid uptake of at-home batteries have reduced projected transmission line needs from 7,500km to 6,000km, although wind projects are lagging in the pipeline. The push towards expanding energy infrastructure, such as renewable energy zones and data centre investments, are causing concerns about prioritisation of water use for Far North SA farmers and New England LGAs facing unclear water security. Additionally, DCCEEW has published new guidance and tools to assist local governments manage climate risk. In this week's data visualisation, we show an AEMO figure from one of the articles demonstrating proportions of energy assets in the least-cost scenario.
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Happy reading and have a lovely weekend!
Helping local governments manage climate risks
On Wednesday DCCEEW published new documents and tools as part of the Climate Risk and Opportunity Management Program (CROMP), which supports local governments with resources to handle the eddies of climate change, including flooding, coastal hazards and heatwaves. For example, the Local Government Application Guide provides step by step details for assessments and encourages proactive investment planning to reduce financial risk. Read more here, and reach out to BGA staff for questions about climate risk assessment processes.
AEMO expects more batteries and less transmission in the grid of tomorrow
The Australian Energy Market Operator's (AEMO) most recent update to its Integrated System Plan confirms old trends that renewables and battery storage infrastructure, supported by gas, remains the most cost-effective option for developing the grid. However, the unexpected rate of home battery uptake has reduced the projected need for transmission lines by 1,500km, although an 6,000km are still needed to meet future demand. The report also finds that lagging wind projects may delay government targets of 82% renewables, suggesting the need for approval streamlining. Read more here.
SA government moves to regulate AI data centres as water, energy concerns mount
The SA government has released data centre strategic documents and plans to introduce new regulations, aiming to create jobs in regional SA and capitalise on the new undersea internet cable linking SA to Singapore. Data centres in Far North SA would be fed by a planned $5 billion water pipeline originally intended to support BHP mining operations. However, concerns over prioritisation of water use between data centres and local agriculture highlight the need for careful regulatory guardrails. Read more here.
Councils deny EnergyCo town water for New England REZ construction
Water and wastewater security studies show that construction projects for the New England Renewable Energy Zone (REZ) may exceed the potable water capacity of four LGAs. Council's are asking for increased water infrastructure investment to meet added demand from energy infrastructure, with Armidale withholding water allocations from renewables projects until the NSW government delineates a clear path to water security, and Uralla is concerned over dry conditions and thinning dam reserves. EnergyCo will release an Environmental Impact Statement outlining potential solutions later this year. Read more here.
AEMO modelling of renewable energy growth
AMEO modelling shows the relative contributions to energy market capacity across asset types. Renewable energy, including utility and rooftop solar, on/off shore wind, and storage from both utility batteries and at-home "consumer energy resources" (CER) are the largest contributors, supported by flexible gas.
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