Australia Renewable Energy Market Size, Share, Growth Analysis Report and Forecast Trends (2024-2032)

Australia Renewable Energy Market Trends

The Australia renewable energy market provides numerous advantages, including improved energy security through diversified sources, job creation across multiple sectors, and economic growth fueled by investments in renewable technologies. It also offers environmental benefits by lowering greenhouse gas emissions and promoting sustainable development through eco-friendly energy solutions. The Clean Power Council (CEC) reported that renewables accounted for nearly 40% of Australia's electricity supply in 2023.

The Australia renewable energy market is thriving, with innovation driving technological advancements and improved energy efficiency. A significant trend of the Australia renewable energy market is the local investment in renewable projects, which supports regional economies. Moreover, renewable energy has the potential to lower electricity costs for consumers, enhance grid resilience, and fund community initiatives. According to the CEC's Clean Power Australia 2024 report, there was a 9.7% increase from the previous year, mainly due to 5.9GW of new clean power capacity, particularly from rooftop solar systems.

Australia Renewable Energy Market Growth

The Australia renewable energy market is thriving as renewable energy strengthens the country’s energy independence by decreasing dependence on foreign sources and enhancing access to affordable clean energy. Numerous renewable projects foster rural development, upgrade infrastructure, and use less water than fossil fuels. This sector also offers export opportunities, positioning Australia as a leader in renewable technology. In March 2024, SolarTech Innovations launched a new solar panel technology that boosts energy efficiency by 30%, aiming to promote the uptake of solar energy in both residential and commercial sectors across Australia.

The Australia renewable energy market is benefiting as the transition to renewable energy enhances public health by lowering air pollution from fossil fuels. Demand in this market is driven by renewable technologies that offer flexible energy solutions and promote advancements in energy storage for greater reliability. Community ownership models empower local populations, positioning Australia as a potential global leader in renewable energy transitions. In September 2024, Green Energy Co. launched a new energy storage system designed to integrate smoothly with renewable sources, aiming to enhance grid reliability.

Australia Renewable Energy Market Insights

• The Clean Energy Council reported that wind power represented 33.9% of Australia's renewable energy generation in 2023, with seven new wind farms commissioned that year.
• The Department of Climate Change, Energy, the Environment, and Water indicated that renewable energy sources, including solar at 14%, contributed to 32% of Australia's total electricity production in 2022.
• Industry reports showed that by the end of 2021, approximately 3.04 million homes and businesses in Australia had installed rooftop photovoltaic (PV) systems.

Industry News

March 2024

Australian researchers reached a significant milestone by developing flexible, lightweight, and portable solar cells that set new records for converting sunlight into energy. Unlike traditional rigid solar panels, these innovative cells are created by printing ink onto thin plastic films.

December 2023

The Australian Renewable Energy Agency (ARENA) provided funding to Intellihub for a virtual power plant (VPP) initiative. This project aims to leverage a network of 2 million smart meters and engage with over 140,000 customer energy resources to optimise load control.

Australia Renewable Energy Market Drivers

Rapid Growth of Solar Energy

The Australia renewable energy market is witnessing a notable surge in solar energy installations, driven by falling costs and government incentives. Residential solar systems are becoming increasingly popular, while large-scale solar farms are enhancing grid power. The pursuit of energy independence and lower electricity bills is encouraging consumers to adopt solar solutions, positioning Australia among the top countries for solar energy capacity per capita, and positively affecting the market. In 2023, the Solar Communities Program was launched to promote solar adoption in communities, offering funding for community-led solar initiatives to enhance local energy resilience and reduce household energy costs.

Investment in Energy Storage

The Australia renewable energy market is being strengthened by the growing need for energy storage technologies, particularly batteries, due to the rise of intermittent renewable sources like solar and wind. Advancements in lithium-ion and other battery technologies are improving the capability to store surplus energy for later use, which is essential for stabilising the grid. The market is being influenced by the necessity to effectively manage supply and demand, ensuring reliability as Australia shifts towards a more renewable-focused energy system. The Australian Energy Council states that the current storage capacity stands at 3 gigawatts (GW), while the Australian Energy Market Operator (AEMO) anticipates a need for at least 22 GW by 2030, marking an increase of over 700%.

Opportunities in the Australia Renewable Energy Market

Policy Support and Government Initiatives

The Australia renewable energy market is bolstered by government policies that increasingly support the development of renewable energy, setting ambitious targets for carbon reduction and renewable adoption. Incentives such as subsidies, grants, and feed-in tariffs encourage investment in renewable technologies. The market growth is further enhanced as state governments implement their plans, promoting a more coordinated national strategy to achieve sustainability goals. In 2021, the Australian government reaffirmed its commitment to renewable energy by maintaining the 2030 target of 23.5% for renewable electricity generation, aiming to stimulate investment and transition to sustainable energy sources.

Market Restraints

The Australia renewable energy market faces several key restraints. Regulatory challenges slow project approvals, while intermittency issues from sources like solar and wind threaten grid reliability. Infrastructure limitations hinder large-scale integration, and smaller projects often struggle to secure financing. Additionally, competition from traditional energy sources can impede growth, particularly if fossil fuel prices are low.

Public resistance to renewable projects may delay development, and technological barriers to energy storage remain, which may hinder the growth of Australia renewable energy market. Economic fluctuations can affect funding, and land use conflicts with agriculture or conservation restrict available sites. Finally, policy inconsistency can create uncertainty, complicating long-term investment planning in the sector. Addressing these challenges is crucial for advancing renewable energy in Australia.

Australia Renewable Energy Industry Segmentation

“Australia Renewable Energy Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Hydro Power
• Bioenergy
• Wind Power
• Solar Power
• Others

Market Breakup by End Use

• Industrial
• Residential
• Commercial

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Renewable Energy Market Share

By Type Insights

The Australia renewable energy market is dominated by hydropower, which serves as a dependable energy source that stabilises the electricity grid by complementing variable renewables such as wind and solar. It helps to lower greenhouse gas emissions, thus supporting climate objectives and improving air quality. The market benefits from hydropower, which plays a crucial role in water management by improving irrigation and flood control. Investment in hydro projects drives economic growth through job creation, while pumped hydro systems offer efficient energy storage, enhancing the reliability of the electricity grid. According to AREMI, hydropower made up 6% of Australia’s total electricity generation in 2023. The country boasts over 120 operational hydroelectric power stations, mainly situated in the southeast.

The Australia renewable energy market is also bolstered by bioenergy, which reduces waste by utilising organic materials, thereby minimising landfill contributions and promoting a circular economy. This approach diversifies Australia’s energy mix, enhancing energy security and decreasing reliance on fossil fuels. The sector generates employment in biomass production and energy generation, positively impacting local economies. Furthermore, bioenergy projects support rural communities and lower carbon footprints, aligning with Australia’s environmental goals for a sustainable energy future. According to the IEA Bioenergy, solid biofuels comprise the largest portion (90%) of bioenergy in Australia, primarily used in industry for power production. Other types of bioenergy include biogas (7.5%) and bioethanol (2.3%).

By End-Use Analysis

As per the Australia renewable energy market analysis, the market is dominated by industrial sector as it brings significant cost savings by reducing dependence on fossil fuels and lowering electricity bills through on-site generation. This shift improves energy security by diversifying sources, making industries more resilient to price fluctuations. Furthermore, it supports sustainability goals, fosters technological innovation, and creates job opportunities, benefiting both businesses and local economies. According to the Australian Government, in 2023, renewable energy sources accounted for 35% of Australia’s total electricity generation, including solar (16%), wind (12%), and hydro (6%).

The Australia renewable energy market is further strengthened by residential renewable energy systems, such as solar panels, which significantly reduce electricity costs through on-site energy generation, leading to long-term savings. Homeowners gain greater energy independence, reducing their reliance on the grid and protecting against rising prices. Additionally, these systems lower carbon footprints, increase property values, and provide access to government incentives, making renewable energy both affordable and attractive. According to ARENA, around 30% of Australian homes have rooftop solar panels, making Australia a global leader in rooftop PV installations per capita. Solar power generated approximately 10% of Australia's electricity in 2020-21.

Australia Renewable Energy Market Regional Insights

New South Wales Renewable Energy Market Regional Insights

As per the Australia renewable energy market report, the shift to renewable energy sources greatly reduces greenhouse gas emissions, assisting New South Wales in achieving its climate targets and promoting a cleaner environment. According to the NSW government, the state currently has about 13,500 megawatts (MW) of renewable energy generation capacity, which accounts for approximately 53% of its total generation capacity.

Queensland Renewable Energy Market Trends

Investment in renewable energy projects drives economic development by generating jobs in manufacturing, installation, and maintenance, which benefits local communities. According to the Department of Energy and Climate, Queensland's renewable energy targets stipulate that 50% of the state's electricity generation must come from renewables by 2030, 70% by 2032, and 80% by 2035.

Western Australia Renewable Energy Market Dynamic

According to the Australia renewable energy market analysis, the shift to renewable energy considerably reduces greenhouse gas emissions, aiding Western Australia in achieving its climate objectives and promoting a cleaner environment. The state boasts substantial solar capacity, with more than 1.5 million rooftop solar systems installed, positioning it as one of the leading areas for residential solar adoption in Australia.

Competitive Landscape

The Australia renewable energy market key players are dedicated to developing and operating solar and energy storage projects. Founded to foster sustainable energy solutions, it focuses on large-scale solar farms and advanced storage technologies that improve grid stability and efficiency. Committed to lowering carbon emissions, the company actively contributes to the transition to a low-carbon economy. With a varied portfolio of projects throughout Australia, it partners with government entities and private investors to provide clean energy solutions that address the rising demand for sustainable power while benefiting local communities and economies.

Key Industry Players

Diamond Energy Pty Ltd.: Founded in 2009 and headquartered in Melbourne, Australia, Diamond Energy Pty Ltd. specialises in renewable energy solutions, particularly solar and wind projects. The company is dedicated to sustainability, offering innovative energy products and services for residential and commercial clients, and contributing to a cleaner, greener energy landscape.

Momentum Energy Pty Ltd.: Established in 2008 and based in Melbourne, Momentum Energy Pty Ltd. is a retail energy provider that prioritises sourcing renewable energy. The company offers competitive electricity plans and is committed to sustainability, aiding Australia’s transition to a low-carbon economy while delivering reliable energy solutions for homes and businesses.

Tilt Renewables: Founded in 2016 and headquartered in Melbourne, focuses on developing and operating wind and solar energy projects in Australia. The company is committed to sustainability and aims to provide clean energy solutions that facilitate the nation’s transition to renewable energy, while also creating local job opportunities.

Acciona, S.A.: Established in 1931 and headquartered in Madrid, Spain, is a global leader in sustainable infrastructure and renewable energy. With operations in Australia, the company develops wind, solar, and hydro projects, promoting innovation and sustainability while supporting local communities and contributing to the shift towards a low-carbon economy.

Other key players in the Australia renewable energy market report are First Solar, Neoen, Edify Energy Pty Ltd. and Hanwha Energy Retail Australia Pty Ltd. among others. 

Recent Developments

July 2023

PureSun Technologies launched a renewable energy brand in Australia that centres on solar panel installations and intelligent energy management systems. The brand's objective is to empower consumers with efficient energy solutions, reinforcing Australia’s dedication to sustainability and reducing dependence on fossil fuels.

June 2023

WindHarvest Energy unveiled its new renewable energy brand in Australia, focusing on wind energy solutions. This initiative aims to utilise Australia’s extensive wind resources, providing cleaner energy options for businesses and supporting the achievement of national renewable energy targets.