With Australia’s transition to clean power sources in full swing, construction of renewable energy infrastructure is forecast to jump almost 50 per cent in 2023 and peak in 2026.
According to Sydney-based company Macromonitor, which provides economic forecasting and research services for the construction industry, as coalfired power stations close in subsequent years, construction of clean energy infrastructure – especially solar and wind – is expected to remain high on Australia’s path to net-zero emissions.
Macromonitor forecasts $5.2 billion investment in clean energy construction in 2023, $11.8 billion in 2026, and annual investment remaining at around $9 billion each year until at least 2032.
“This surge is being driven by several factors such as the Australian government’s commitment to emissions reduction; the closure of coalfired power stations between 2023 and 2035; large-scale battery storage; new transmission routes to support renewable energy zones; and state-specific renewable energy targets,” Macromonitor economist Abdul Hannan told The Australian Financial Review.
“The solar sector’s total value of work done will hit its highest point of $3.6 billion in 2024. Similarly, the wind sector’s total value of work done is expected to reach a new peak of $5.4 billion in 2026, which will coincide with a significant peak in construction activity in Queensland.”
Construction of large-scale battery storage in Australia is estimated at $1.2 billion in 2023 and is expected to rise to $1.8 billion per year between 2024 and 2026.