Australian renewable energy investment lags behind targets in Q3

Australia's renewable energy investment has stalled in Q3, with only two grid-scale projects reaching a final investment decision (FID) in July-October, the fourth-lowest quarterly result since 2017. The Clean Energy Council (CEC) report shows that Australia's renewable energy sector remains sluggish after a weak 2023, with only 509MW of new commitments made to date this year. The 161MW capacity figure for July-October was 60pc lower than the 400MW of renewables that reached FID in July-October 2022.

Only 13MW of storage projects reached FID for the quarter, with an investment total of A$150mn ($100mn) in both renewable generation and storage. Australia is well behind an estimated 6,900 MW/yr needed to reach the federal government's 82pc renewables in electricity goal by 2030. The government and renewables industry have said that taxpayers' underwriting of investment will provide certainty of supply as Australia shuts down its coal-fired power plants during the coming decade. However, critics argue that the exclusion of gas-fired power to support variable renewables erodes its effectiveness.