Australia's Clean Energy Investment Momentum Unaffected by Political Changes

In recent months, strong investments have revitalized Australia's energy transition, as highlighted by the latest industry data. This positive momentum is expected to remain stable despite the potential challenges posed by Donald Trump’s return to influence in United States politics.

According to a report from the Clean Energy Council, Australia has achieved its highest level of clean energy investment since late 2022. Chief executive Kane Thornton emphasized to AAP that investment in renewables would continue, irrespective of the so-called "Trump factor" or the U.S.'s engagement with international climate initiatives.

Positive Investment Trends in Renewable Energy

The Quarterly Renewables Report revealed that from July to September, Australia committed to 1,400 megawatts, or $3.3 billion, worth of new large-scale renewable energy projects. This surge also included a record investment in energy storage projects, with 1,235 megawatts and 3,862 megawatt-hours reaching financial commitment, marking an impressive 95 percent increase compared to the same period last year.

Onshore wind projects have also rebounded, with a total of 1,758 megawatts of new capacity confirmed in 2024. Thornton noted that the uptick in investment signifies a gradual easing of the tough economic conditions experienced recently, with the investment during the September quarter alone exceeding the total for all of 2023.

Future Projections for Renewable Energy in Australia

Based on the projects currently under construction, it is anticipated that renewable energy will account for nearly half of Australia’s energy supply by the end of 2025. Since 2020, investors have injected $40 billion into renewable energy and storage projects. If the strong performance from July to September continues, Australia is on track to achieve 82 percent renewable energy generation by 2030.

Thornton also acknowledged the global shift in clean energy investment. After President Joe Biden's administration introduced the Inflation Reduction Act in 2022, considerable investments flowed into the U.S., often at the expense of initiatives in Australia. However, he pointed out that if U.S. investment were to slow down, Australia might become a more attractive alternative for investors seeking opportunities in renewables.

He added that despite any current political changes, significant investment continues within Republican states across the U.S., driven by strong forces supporting renewable energy both in the U.S. and Australia.

Overall, the outlook for Australia’s clean energy sector remains bright, with the foundation of investment firmly in place for a sustainable energy future.

energy, investment, renewables