Essays on How Power Relations Influence the Growth of the Renewable Energy Industry Case Study

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The paper 'How Power Relations Influence the Growth of the Renewable Energy Industry' is a great example of a Business Case Study. The following paper aims at illustrating the challenges faced by Australia in embracing renewable energy while offering options and recommendations for businesses. The paper will compare Australia to China in terms of effectiveness in producing and embracing renewable energy. Issues for Consideration Policy Issues in Australia Barriers In Australia, the government has been influenced by huge fossil fuel corporates. This can be viewed as political fear based on consumer reaction against price increases in electricity.

The Australian government is afraid of how consumers might react if they turn to renewable energy that would see an increase in electricity bills. According to Luke’ s Lukes, (2005) the third dimension of the public is still being convinced that RE is unsustainable, intermittent, and expensive without offering evidence to support these assumptions. Nonetheless, their power and capabilities may be threatened if any competition is to arise (Lukes 2005 p. 222). Corporates and investors in fossil fuels are a new class of super citizens who encourage and demonstrate their benefits through natural, human, political, or human resources that were once only reserved for nations.

Furthermore, the huge fossil fuel corporates are known to hire lobbyists while pulling their resources together to highlight their political agendas to the extent that RE advocates cannot compete. Disharmony between Federal and State Government Australia also faces challenges in terms of government support for businesses in the RE industry. Most of the government programs are aimed at making coal and gas production cleaner unlike investing in renewable energy. This has shifted the focus on embracing RE to that of enhancing the current energy sources including coal, gas, and oil. Clean Energy Finance Corporation The previous ruling party had established the Clean Energy Finance Corporation to support renewable energy projects.

Nonetheless, the current ruling party has cut on investment or support for renewable energy. This has created increased challenges for businesses in the RE industry to grow. Policy Barriers in China China has a significant policy through the Renewable Energy Act of 2005 that has seen the increased expansion of energy capacity through renewable sources. Nonetheless, uncontrolled and overinvestment has transpired in biomass energy and hydropower.

Another major policy barrier is witnessed in the underinvestment of alternative renewable energies such as solar. The Chinese government illustrates unwillingness in prioritizing RE projects based on the financial benefits accompanied. Financial institutions are mostly unwilling to invest in RE where government subsidies are limited. Again, pricing systems for RE in China face numerous challenges especially in the development of effective models for encouraging investment (Zhao, Zuo, Fan & Zillante 2011 p. 28). Moreover, the management of energy resources remains fragmented with numerous institutional having uncoordinated and inconsistent regulations and policies. Market Challenges China has enjoyed effective policy implementation in the area of renewable energy.

Nonetheless, the success of RE depends on the market which must compete with existing energy resources. China continues to face immense challenges based on variations from market demands and resources that create a distorted pricing model.


Australian Government 2013, Energy in Australia, Commonwealth of Australia, viewed 4 September 2014,

Bahadori, A, Nwaoha, C, Zendehboudi, S, & Zahedi, G 2013, 'An overview of renewable energy potential and utilization in Australia', Renewable And Sustainable Energy Reviews, pp. 582-589.

Effendi, P. & Courvisanos, J. 2012, ‘Political aspects of innovation: Examining renewable energy in Australia’, Renewable Energy, vol. 38 no. 1, pp. 245-252.

Lo, K. 2014. ‘A critical review of China’s rapidly developing renewable energy and energy efficiency policies’. Renewable and Sustainable Energy Reviews, vol. 29 no. 0, pp. 508–516.

Lukes, S. 2005, ‘Introduction’ in S Lukes, Power, A radical view, 2nd Edition, Chapter 1, pp. 1-59, Palgrave Macmillan, Great Britain.

Zeng, M, Li, C, & Zhou, L 2013, 'Progress and prospective on the police system of renewable energy in China', Renewable And Sustainable Energy Reviews, pp. 36-44.

Zhao, Z. Y, Zuo, J, Fan, L. L & Zillante, G. 2011, ‘Impacts of renewable energy regulations on the structure of power generation in China–A critical analysis’, Renewable Energy, vol. 36 no. 1, pp. 24-30.

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