Australia's Renewable Energy Targets at Risk Due to Decreased Investment, Experts Warn
The Australian government's ambitious clean energy targets are facing a significant threat due to a slump in solar and wind investment. According to the Clean Energy Regulator, commitments on large-scale renewable energy projects have fallen to their lowest level in almost a decade, with only 2.5GW of new capacity expected to reach final investment decision this year.
The government's goal of generating 82% of electricity from clean sources by 2030 is increasingly looking like an uphill battle. Experts warn that the construction of solar and wind farms must accelerate substantially if Australia is to meet its targets. The chief executive of the Clean Energy Investor Group, Richie Merzian, has described the current investment climate as "deep structural issues" rather than a temporary downturn.
These issues include delays in state planning approvals, uncertainty over grid connections, rising project costs, and a lack of long-term revenue certainty for renewable energy projects. The underwriting program, designed to support solar, wind, and battery projects, has helped to develop a large pipeline of potential projects, but it is not enough to overcome the systemic barriers to investment.
Renewable energy experts are urging the government to provide more support for these projects, including extending the capacity investment scheme beyond its scheduled closure date in 2027. Frankie Muskovic, executive director of policy for the Investment Group on Climate Change, has warned that the reduced investment decisions this year are a "concerning trend" and need to be addressed if Australia is to meet its climate targets.
The Australian government's annual climate statement revealed that there were over 16GW of renewable energy projects under contract or in negotiations through the capacity investment scheme. However, experts argue that more needs to be done to boost investment in new "system security" energy infrastructure, particularly synchronous condensers, if New South Wales' Eraring coal-fired power plant is to shut as planned in 2027.
As the Australian government navigates this critical period, it remains to be seen whether the country can overcome its structural barriers to renewable energy investment and meet its ambitious clean energy targets.
The Australian government's ambitious clean energy targets are facing a significant threat due to a slump in solar and wind investment. According to the Clean Energy Regulator, commitments on large-scale renewable energy projects have fallen to their lowest level in almost a decade, with only 2.5GW of new capacity expected to reach final investment decision this year.
The government's goal of generating 82% of electricity from clean sources by 2030 is increasingly looking like an uphill battle. Experts warn that the construction of solar and wind farms must accelerate substantially if Australia is to meet its targets. The chief executive of the Clean Energy Investor Group, Richie Merzian, has described the current investment climate as "deep structural issues" rather than a temporary downturn.
These issues include delays in state planning approvals, uncertainty over grid connections, rising project costs, and a lack of long-term revenue certainty for renewable energy projects. The underwriting program, designed to support solar, wind, and battery projects, has helped to develop a large pipeline of potential projects, but it is not enough to overcome the systemic barriers to investment.
Renewable energy experts are urging the government to provide more support for these projects, including extending the capacity investment scheme beyond its scheduled closure date in 2027. Frankie Muskovic, executive director of policy for the Investment Group on Climate Change, has warned that the reduced investment decisions this year are a "concerning trend" and need to be addressed if Australia is to meet its climate targets.
The Australian government's annual climate statement revealed that there were over 16GW of renewable energy projects under contract or in negotiations through the capacity investment scheme. However, experts argue that more needs to be done to boost investment in new "system security" energy infrastructure, particularly synchronous condensers, if New South Wales' Eraring coal-fired power plant is to shut as planned in 2027.
As the Australian government navigates this critical period, it remains to be seen whether the country can overcome its structural barriers to renewable energy investment and meet its ambitious clean energy targets.
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australia was supposed to be a leader in renewable energy but now it looks like they're falling behind 
i mean 82% by 2030 sounds great but if the investment just dried up and nobody can get on board then how are they gonna make it happen? 
these 'deep structural issues' sound super legit though, delays in approvals and uncertainty over grid connections gotta be a major headache for anyone trying to build a new solar farm 
the underwriting program is like, cool and all but not enough to fix everything 
can't they just give more incentives or something? 
This news is defo a bummer for Aus! The gov's got big plans for renewables but if investors aren't stepping up, they're gonna fall flat on their face 
. I mean, delays in approvals & rising costs are major hurdles that need to be addressed ASAP 
️. It's concerning to think that Australia might not hit its 2030 target if we don't get our act together 
. Fingers crossed that someone will step in and help Aus get back on track 
.
And can we talk about how outdated that 2027 capacity investment scheme closure date is? 
I mean, come on, we know the energy landscape is changing fast 
. It's like we're trying to reach the top of a mountain without even having a map 
. Australia needs more support and incentives for renewable energy projects, or else it'll be hard to meet its targets 
. Delays in planning approvals and uncertainty over grid connections are a major headache 
. We need more long-term revenue certainty for these projects 
. Can't the government provide some clarity on this? 
. Australia's got the potential to be a renewable energy powerhouse, but they need to get their act together ASAP