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Investment in large-scale renewable energy generation continues to trend upwards in Australia with more than 1.4 GW of new solar and wind projects, worth $3.3 billion, reaching financial commitment in the third quarter of 2024.
The latest quarterly assessment by the Clean Energy Council (CEC) shows 10 new large-scale solar and wind energy generation projects totaling 1,405 MW with a combined value of AUD 3.3 billion ($2.17 billion) achieved a final investment decision in the three months to the end of September.
The 1,405 MW of new generation capacity committed in the quarter exceeds the annual total for 2023 and is the first time new generation projects reaching financial commitment have surpassed 1 GW in a quarter since late 2022. The rolling 12-month quarterly average for capacity of financially committed generation projects has now increased for three quarters in a row.
Investment in energy storage projects also continued to power ahead between July and September with eight new battery systems totaling a record 1,235 MW/3,862 MWh of energy output reaching financial commitment – up 95% compared to the same period in 2023. The CEC said these investment commitments totaled at least $1.2 billion, with several projects not providing publicly available investment data.
CEC Chief Executive Officer Kane Thornton said the latest Renewables Projects Quarterly Report reflects that conditions are gradually improving for the sector.
“The increasing activity indicates that the challenging economic conditions are beginning to ease and the hard work by government agencies and industry to address a wide range of legacy issues across our grid, planning and institutional settings, are starting to bear fruit,” he said.
The commitments made in the last quarter mean 34 generation and battery energy storage projects have reached financial close in 2024. This equates to 3 GW of new generation capacity, and 2.8 GW/8.0 GWh of new energy storage across Australia.
There are now 89 renewable electricity generation projects that have either reached financial commitment or are under construction, representing 13.9 GW of capacity in the pipeline.
In the case of energy storage, 49 projects are in the pipeline from financial commitment onward, equivalent to 9.7 GW/24.3 GWh in capacity.
The CEC said that more than 40% of Australia’s electricity supply now comes from renewable energy, including hydro, solar and wind, with the renewable energy share expected to climb to almost 50% by the end of next year, based on the projects under construction today.
Thornton however said despite the positive quarterly result, more needs to be done through this decade to meet the federal government’s target of 82% renewable energy generation by 2030.
Australia needs to add between 6 GW and 7 GW of new renewable generation capacity every year to achieve the target, an average of at least 1.5 GW each quarter.
“If we sustain the level of investment for new wind and solar power plants which we have seen in the third quarter of this year, we can get back on track to achieving Australia’s target of 82% renewable energy generation by 2030,” Thornton said. “There is a lot more work still to be done, but the signs are encouraging.” |
