Australia’s Renewable Energy Market

The transition to a low-carbon economy is a critical imperative for Australia, given its significant greenhouse gas emissions profile. Investing in clean energy is essential to reduce emissions, enhance energy security, and drive economic growth. By leveraging solar, wind and utilising battery storage, Australia will create new employment opportunities, generate economic growth and establish itself as a global leader in the transition to a sustainable energy future. 

Private investors are positioned to take advantage of this increasing momentum and are looking to invest in new renewable projects and subsequently there has been an uptick in new project starts. According to the International Energy Association (IEA), to reach global net zero emissions by 2050, annual clean energy investment worldwide will need to more than triple by 2030 to around $4 trillion. Given Australia's abundant natural resources, such as solar and wind, many renewable projects can achieve competitive IRRs, depending on market conditions, costs, and government incentives. As Australia transitions towards cleaner energy, favourable policies and decreasing technology costs are likely to enhance IRR prospects, making renewable projects increasingly attractive to investors.