Australia’s renewable energy industry continues to grow rapidly, with new data showing renewables now account for nearly 40 per cent of the nation’s total electricity supply.
However, investment challenges are hampering the pace of utility-scale project development needed for a timely energy transition.
The Clean Energy Council’s (CEC) annual Clean Energy Australia 2024 report found renewables comprised 39.4 per cent of Australia’s electricity generation in 2023, up 9.7 per cent from the previous year. A record 5.9 gigawatts (GW) of new renewable capacity was added to the grid.
“Renewables have reached a critical tipping point in Australia’s energy mix after a year of profound change,” CEC CEO Kane Thornton said.
“But we need to overcome barriers holding back substantial new project opportunities.”
Rooftop solar continued its strong trajectory, with over 337,000 households and businesses adding 3.1GW of new capacity in 2023. This accounted for 28.5 per cent of Australia’s total renewable generation.
Utility-scale battery storage investment also boomed, reaching $4.9 billion for projects now under construction, up from $1.9 billion in 2022. Twenty-seven large-scale battery facilities are being built, compared to 19 a year earlier.
However, financial commitments for new large-scale wind and solar projects slowed significantly last year. No new wind farm investments were made, while just 921 megawatts (MW) of large-scale solar was financially backed, down from 1.5GW in 2022.
Thornton said overcoming these investment barriers is critical, stating “the past year sent strong policy signals on the importance of a timely energy transition. We’re determined to maintain strong clean energy investment”.
The report findings highlight Australia’s accelerating renewable energy growth but underscore the need for further action to drive utility-scale project development and meet emissions reduction goals.
For more renewable and solar news, subscribe to ecogeneration.