Introduction

It is with great pleasure that we bring you the first special issue on 'Blue Sky' issues in the energy transition. So often as lawyers and academics we focus on a single problem or issue, to the detriment of the 'bigger picture', akin to not seeing the forest for the trees. In late 2023 the Macquarie Law School Centre for Energy and Natural Resources Innovation and Transformation (CENRIT) began a series of Blue Sky Seminars, designed to zoom out from the details, and examine the bigger picture, whether that be focussing on an issue, such as the role of innovation in the energy transition, a technology, such as biohydrogen, or a jurisdiction. CENRIT is now part of Macquarie University's Transforming Energy Markets Research Centre (TEM), with the Blue Sky Seminar series continuing under TEM. These articles started out life as a seminar presentation, with the author updating and expanding to become the paper contained herein.

Given the scope of CENRIT (and now TEM), the Blue Sky Seminar Series focusses on the role, influence and impact of innovation and technology in the energy transition. There are some that see innovation and technology as the same (or similar). We do not. In the context of CENRIT/TEM, innovation is seen as the process of creating and implementing new ideas, methods, processes or products to improve on or solve existing problems. We differentiate this from technology, which uses conceptual knowledge, especially in science, engineering, and economics to create practical tools, machines, software and processes to solve problems. Often innovation can arise in form the application of existing technologies, such as the coupling of hydraulic fracturing, horizontal drilling and 3-D seismic modelling that drove the shale gas revolution in the 2000s and 2010s.

The energy transition requires innovation and technological development to succeed. Indeed some countries such as Australia have decided that technology, not taxes, will drive emissions reduction to net-zero by 2050. This requires technological advancements and innovation in areas such as synthetic fuels and biofuels, sophisticated manufacturing and recycling of renewable energy structures, carbon capture and storage, and battery storage to address the challenges that arise as much of the world integrates vast volumes of renewable energy into their electricity systems. Such renewable energy integration brings market challenges, requiring sophisticated economic analysis and modelling. For some countries, there is also consideration of new technologies, such as small modular nuclear reactors that have hitherto been unused in an energy generation setting to date.

This special issue brings you articles on some of these issues. With such a breadth and plethora of issues challenging the energy transition, it would be impossible to cover everything. However this issue does examine some critical universal issues, such as the role of innovation and technology, and energy security. It also dives into universal challenges applied to a particular jurisdiction. We have curated this collection to take the reader on a journey from broad universal issues to more nuanced application of universal themes in a single jurisdiction, especially Australia.

Our special issue is brilliantly led with an article from the indefatigable and eminent scholar Professor John Paterson of Aberdeen University. In his article. Energy technology and governance in a time of crisis, Paterson identifies and dissects the unprecedented issues facing is in the energy transition through the lens of the energy quadrilemma. Hr askes perhaps the biggest energy transition question of all... what does it mean for contemporary societies and the international order? In unpacking this fundamental question Paterson objectively analyses the role of the law in the pursuit of energy security, examining OPEC, the OECD, and beyond to demonstrate how state control over energy has changed along with the shifting role and control of control of markets. Such changes and shifts have been felt not only nationally, but also within a global setting, altering geopolitics and power alike.

Moving from markets to mitigation, in his paper Constitutional Law and Energy Transformation Professor Carlos Bernal-Pulido examines the role of constitutionalism and apex courts in climate change mitigation and the implementation of targets whilst simultaneously securing the right to access energy resources for economic growth and development. He suggests that on the one hand domestic apex courts should use a methodology of transformative constitutionalism to resolve the tension between climate change mitigation, and the constitutional right to access to energy sources, on the other. He determines that addressing the tension requires courts to balance competing constitutional rights and legal interest, and to analyse technical regulations since courts often lack information and are epistemic disadvantaged, compared to private companies and public agencies, for undertaking such tasks. Courts face a similar situation when they face the challenges of transformative constitutionalism. He concludes that apex courts should use some strategies of transformative constitutionalism for catalysing political authorities and private powers to adopt and implement appropriate energy transition policies, to mitigate climate change and, at the same time, secure the right to access energy sources.

Moving from law to international relations, in his paper Energy Security in a Time of Energy Transformation and Innovation, Vivoda offers an in-depth exploration of the multifaceted nature of energy security, placing a special emphasis on the essential role played by innovation and transformative policies in forging a resilient and sustainable energy future. Vivoda analyses the concepts of innovation and transformation, opining that innovation in the realm of energy security extends beyond mere technological advancements to include the development of novel policy frameworks, the emergence of new business models, and significant shifts in consumer behaviour. His research demonstrates how innovation play a critical role in addressing the vulnerabilities inherent in energy systems, which range from geopolitical risks to environmental impacts. Thus, he sees that the implementation of transformative policies is essential to guide the energy sector towards enhanced sustainability, efficiency, and inclusivity that are essential in achieving energy security.

In discussing his groundbreaking research Professor Robert Willows shifts our attention from international relations to living organisms. His article Unleashing the Potential of Bio-hydrogen in the Energy Transition delves into the critical role of hydrogen in achieving decarbonization by 2050, highlighting the limitations of current hydrogen production methods predominantly based on fossil fuels. It explores an innovative alternative to current methods - bio-hydrogen production utilizing biomass with microorganisms as catalysts, emphasizing the utilization of algal hydrogenase for high-rate, high-yield hydrogen gas production from renewable biomass. His discussion not only illustrates the potential of biomass-derived hydrogen in fostering a hydrogen economy but also addresses the associated challenges and the future directions of this promising technology.

On the heels of scientific innovation from Willows comes Strezov et. al.'s consideration of hydrogen in the article the Role of Hydrogen in the Energy Transformation. Given the pivotal role that hydrogen is expected to play in global decarbonisation revolution, an abundant supply of hydrogen is essential. Hydrogen can be produced by mining natural resources, from renewable energy sources, including solar, wind and biomass, from nuclear energy, or from fossil fuels with or without integrating carbon capture technologies. Numerous strategies and plans have been emerged globally to promote technological development and facilitate the economy's transition to hydrogen energy to ensure the competitiveness and market dominance of renewable and clean hydrogen. Therefore this paper provides an overview of the production, international regulatory frameworks, and selected priorities for immediate to medium term uses of hydrogen in its transformation pathway of the global energy and economy paradigms, incorporating a consideration of the immediate to medium term application of hydrogen, including hydrogen blending with natural gas for use in existing gas networks, hydrogen as a transport fuel, its use in the production of electricity through either direct combustion or fuel cell technology, and in green steelmaking.

After the broader consideration of the energy transition and energy fuels, the special issue turns its attention to the Australian jurisdiction. Firstly, Soliman-Hunter and Taylor provide a policy and regulatory stocktake of the energy transition in Australia. This stocktake examines the laggard approaches to emissions reduction in the 2010s, to the rapid implementation of net-zero emissions by 2050 on the back of the catastrophic 2019-2020 bushfires and COVID-19. Turning to the Dr Cameron Kelly, in his paper Banking the Energy Transition: Comparing Flexible Support Mechanisms under Australia's Capacity Investment Scheme, Hydrogen Headstart, and Electricity Infrastructure Roadmap, he provides a unique analysis of flexible mechanisms that support the energy transition in Australia. He considers how financing the energy transition requires balancing an appropriate balance between the respective roles of government and private capital as we shift from large thermal assets to decentralized renewable assets. Rounding out the Australian trio of articles is Evatt et. al., who in their paper Escape from the Valley of Death: The Case for a Geological Storage Mandate in Australia consider the role of geological carbon storage (GCS) (also known as carbon capture and storage, or CCS) in Australia's net-zero policy. The paper focuses on dominant policy mechanisms for GCS, including the consideration of a GCS mandate as a policy tool to reach Australia's net-zero by 2050 target.

Last, but certainly not least, is Mauger's consideration of the role and use of batteries in his article The Regulation of Large-Scale Battery Storage in Spain: A Race Against Time to Achieve Rapid Decarbonisation. This article examines the legal framework being established for large-scale, stand-alone and co-located battery energy storage installations at both the European Union (EU) and Spanish levels. Mauger's analysis demonstrates that EU institutions have been shaping this framework since 2019, with Spain beginning its transposition process in 2020 through significant, fast-paced legal reforms. However, despite these efforts, Mauger demonstrates that this intense legal activity has so far failed to materialise in substantial battery installations in Spain, although the allocation of investment subsidies and the imminent introduction of the capacity mechanism are expected to drive developments on a gigawatt scale. The article concludes by flagging several pending legal issues such as the detailed technical rules for grid connection and access by demand installations and it formulates recommendations such as the creation of a Frequency Containment Reserve market as well as the deployment of local flexibility markets.

We hope that you enjoy the breadth and depth of scholarship relating to the bigger picture in the energy transition that this special issue brings. We are sure that this is a topic of great interest and look forward to delivering similar special issues in years to come.