Australia's Renewable Energy Capacity Investment

planned

Australia is experiencing a slump in solar and wind investment, with commitments on large-scale renewable energy farms at the lowest level in almost a decade. The government aims to increase the share of electricity from clean sources to 82% by 2030, but structural issues such as state planning delays, grid connection uncertainty, transmission constraints, rising project costs, and lack of long-term revenue certainty are hindering progress. The Clean Energy Regulator expects 2.5GW of industry-scale renewable energy capacity to reach a final investment decision in 2025, down from 4GW in 2024. The government has a capacity investment scheme to support solar, wind, and battery projects to replace coal-fired power stations, with more than 16GW of renewable energy projects under contract or negotiation.