GridBeyond has just released their White Paper on Global Energy Trends 2026, showing that Australia’s state governments have expanded their role in funding and enabling new transmission, storage and renewable energy infrastructure.
State governments and their financing authorities now collectively manage around $660 billion in outstanding debt, reflecting the scale of capital investment underway across transport, utilities and energy systems. Over the coming years, a growing share of this investment is expected to flow into grid infrastructure, renewable generation, firming capacity and enabling assets required to support a high-renewables power system.
As major transport projects in New South Wales and Victoria near completion, infrastructure pipelines are gradually evolving. Energy and utility projects are becoming a more prominent part of forward capital programs, particularly in jurisdictions where government-owned corporations play a central role in the delivery of generation, storage and network assets.
Queensland is a notable example, with publicly owned energy businesses forming a core part of the state’s long-term transition pathway. South Australia and Western Australia are also maintaining strong public-sector participation in energy infrastructure delivery. In contrast, New South Wales continues to progress a model where private-sector developers and investors lead most generation and storage investment, supported by state-led planning and network coordination.
Across the country, total state capital expenditure is now running at approximately $100 billion per year, underlining the scale of the infrastructure task involved in modernising Australia’s energy and transport systems. Within that envelope, energy projects are taking on increasing importance as states respond to rising electricity demand, population growth and decarbonisation commitments.
From a system perspective, public investment plays a complementary role alongside private capital. Government balance sheets are particularly well suited to supporting long-life assets such as transmission corridors, system-strength infrastructure and renewable energy zones, which provide shared network benefits and long-term economic value.
At the same time, financing conditions are evolving. As borrowing programs expand, Australian state bonds are attracting growing interest from global investors. In 2025, Queensland and Victoria both issued euro-denominated bonds to support their capital programs, broadening their investor base and increasing funding flexibility. Further offshore issuance is expected in 2026 as states continue to diversify funding sources.
This trend supports the sustained delivery of large, multi-year infrastructure programs, including in the energy sector. It also reflects Australia’s strong institutional framework and the depth of its capital markets.
Looking ahead, the next phase of infrastructure development is expected to place greater emphasis on electricity networks, renewable integration, energy storage and system resilience. These investments will be critical to maintaining reliability and affordability as the generation mix continues to shift.
With population growth, electrification and industrial decarbonisation all driving demand for new capacity, the scale of the build-out remains significant. State investment programs, alongside private-sector development, will continue to play an important role in ensuring the energy system evolves in a timely, coordinated and orderly way.