The federal opposition in Australia has called for a formal investigation into a $2.6 billion renewable energy project after it was revealed that Genaspi Energy, the Australian company behind the initiative, had outsourced key components to firms owned and controlled by the Chinese government. The situation has raised concerns over national security, transparency, and foreign influence.
Genaspi’s project has been declared a national priority and included in Labor’s Capacity Investment Scheme (CIS), the government’s flagship initiative for supporting clean energy. The CIS guarantees funding and underwriting of operating costs for up to 15 years, effectively using taxpayer money to support long-term energy projects. This is Genaspi Energy’s first Net Zero development, operating from a small, unbranded office in Ultimo, Sydney.
Recent investigations have revealed that Genaspi has signed at least three agreements with Chinese firms, including China Energy Engineering Corporation and CEEC Energy Storage Technology, for the construction of the 1,700-hectare Bundey BESS and Solar Farm in regional South Australia. These agreements primarily involve technical and procurement support, while Genaspi retains full control over the project’s development, construction, and operation.
Owner Cornelius Strydom defended the arrangements, insisting there is no wrongdoing. “All development, construction, and operational control will remain with Australian companies,” he said, adding that Chinese firms provide only technical support and equipment procurement. He also emphasized that Australian suppliers will remain a priority wherever possible.
Despite this, national security experts have raised alarms over potential espionage, sabotage, and foreign interference, given the strategic importance of Australia’s energy infrastructure. Peter Jennings, Director at Strategic Analysis Australia, warned that China is attempting to establish monopolistic positions in renewable energy technology, controlling the supply of solar panels, batteries, and grid infrastructure.
Shadow Energy Minister Dan Tehan called for a full Senate inquiry to ensure transparency in the project’s inclusion in the CIS. Federal Liberal MP Tom Venning, representing the South Australian electorate where the project is located, said all links to the Chinese government must be immediately clarified and publicly disclosed.
The case highlights broader concerns about Australia’s growing dependence on Chinese technology in renewables, at a critical time when the nation seeks to achieve its Net Zero energy targets. While the government maintains that subcontracting to foreign firms for supportive roles does not breach foreign investment regulations, experts continue to call for stricter oversight and accountability.
