Australia has ambitious goals of becoming a “Renewable Energy Superpower”, as recently announced along with a 22.7 billion Australian dollar package to develop the nation’s industrial and renewable energy sectors. The Future Made in Australia package was introduced to encourage private sector investment into critical industries, that will help Australia transition to a net-zero future and provide economic resilience and security. This was announced after investment in renewable energy projects in Australia saw a massive slowdown in 2023.
In terms of government initiatives, the Large-scale Renewable Energy Target and the Small-scale Renewable Energy Scheme have both contributed to the influx of green power capacity. The former encourages investment in renewable power stations to achieve 33 thousand gigawatt-hours of additional renewable electricity generation each year, while the latter financially incentivizes individuals and small businesses to install small-scale renewable energy systems such as rooftop solar, solar water heaters, and air-sourced heat pumps. While investment in large-scale clean energy plants was low in 2023, rooftop solar investment was still going strong. The average rooftop solar system size in Australia has continued to increase.
While cost, intermittent supply, and geography are all barriers to a fully renewable energy future, continued innovations in technology and government policy change will hopefully secure Australia's place as a global renewable energy leader.
Australia’s clean energy resources
Wind, small and large-scale solar photovoltaics (PV) and hydro led the renewables segment of the energy generation market in Australia. The country's diverse regional landscapes and climates contribute to the varying mix of energy sources dominating each region. Victoria and South Australia are suited to wind power generation, while solar energy is predominant in the eastern states, with the highest capacities of solar PV installed in Queensland and New South Wales.In terms of government initiatives, the Large-scale Renewable Energy Target and the Small-scale Renewable Energy Scheme have both contributed to the influx of green power capacity. The former encourages investment in renewable power stations to achieve 33 thousand gigawatt-hours of additional renewable electricity generation each year, while the latter financially incentivizes individuals and small businesses to install small-scale renewable energy systems such as rooftop solar, solar water heaters, and air-sourced heat pumps. While investment in large-scale clean energy plants was low in 2023, rooftop solar investment was still going strong. The average rooftop solar system size in Australia has continued to increase.
What’s in store for Australia’s renewables future?
Renewable hydrogen could be a focus of attention in the coming years, with the Australian Government wanting to become a global hydrogen leader by 2030. Hydrogen fuel does not emit carbon upon combustion, just water. However, the process of producing hydrogen fuel depends heavily on fossil fuels, specifically for gray hydrogen production. A shift to clean hydrogen production is in the pipeline, with hydrogen hubs seen as the most cost-effective way to scale up production. Clean hydrogen, also known as green hydrogen, is produced using renewable energy, and has been identified as a valuable fuel to decarbonize some parts of Australia’s economy, and can potentially be exported to trading partners. Currently, the relatively high production cost and the as-of-yet unpredictable demand.While cost, intermittent supply, and geography are all barriers to a fully renewable energy future, continued innovations in technology and government policy change will hopefully secure Australia's place as a global renewable energy leader.
