Australia’s Renewable Energy Investment Progress
The year 2025 has kicked off with a positive note for Australia’s renewable transition, as indicated by the significant investments in solar, wind, and energy storage projects in the final quarter of 2024. The Clean Energy Council’s latest quarterly investment report highlights the financial commitments made towards renewable energy projects during this period.
During the last three months of 2024, a total of seven renewable energy generation projects, amounting to 1,589 megawatts (MW), reached financial close. This milestone signifies that these projects are set to progress, having met all necessary approvals and secured contractors.
Key Highlights of the Report
The report reveals that this quarter marked the second consecutive period where newly committed generation projects exceeded 1 gigawatt (GW), a trend not seen since 2021. A notable contributor to this surge was Lightsource bp’s Goulburn River Solar Farm, a 585 MW project that secured financial commitment through the federal government’s Capital Investment Scheme tenders.
In terms of financial value, the Q4 renewable energy projects total approximately $2.4 billion, pushing the 12-month quarterly average for investment in committed renewable generation to $2 billion – a milestone last achieved in Q2 2019.
Technological Breakdown
Breaking down the investments by technology, onshore wind projects secured 2,218 MW of financial commitment in 2024, marking a significant recovery from the zero total recorded in 2023. Additionally, large-scale solar projects received the green light for 1,918 MW of new capacity, compared to 1,314 MW in the previous year.
Furthermore, large-scale storage projects saw 870 MW / 1,936 MWh worth of commitments in the quarter, contributing to a successful year where a total of 4,029 MW / 11,348 MWh of new storage projects were committed.
Future Prospects and Achievements
These investments align with Australia’s goal of achieving 82 per cent renewables by 2030 and net zero emissions by 2050. The country has already commissioned 223 generation and storage projects since 2017, representing substantial installed capacity and capital investment.
Looking ahead, the current pipeline includes 88 renewable electricity generation projects and 52 storage projects either committed or under construction, amounting to significant capital investment and capacity. These developments are crucial for Australia’s transition away from coal-fired power plants towards cleaner energy sources.
The recent strong investment trends underscore the importance of maintaining policy focus and stability to support further growth in the renewable energy sector. With a strategic approach and continued investment in clean energy infrastructure, Australia can progress towards a more sustainable and cost-effective energy system.
