Investment in renewable energy projects in Australia rebounded in the first quarter of 2024 from the 2023 lows, but the country needs to further boost its annual investments to meet the government's 2030 clean energy target, industry body Clean Energy Council said in a report on Friday.
The association's Renewable Projects Quarterly Report for Q1 2024 found that large-scale renewable generation projects saw five projects totaling 895 megawatts (MW) of capacity reaching financial commitment during the first quarter of the year.
In addition, Q1 2024 marked the fourth consecutive quarter in which energy storage projects secured financial investment commitments over US$667 million (AUS$1 billion).
Moreover, the first quarter was the best quarter for electricity generation projects reaching financial commitment since the end of 2022, with the five projects of a total of 895 MW.
However, investment levels in generation projects will need to increase further with financial commitments of at least 6 - 7 gigawatts (GW) of new large-scale generation projects needed this year and in each successive year, to meet the Federal Government's target of 82% renewable power generation by 2030, the Clean Energy Council said.
"The sluggish investment activity in new electricity generation projects highlights the challenging project development conditions including higher financing and supply chain costs, drawn-out planning and environmental assessment processes in some jurisdictions and the legacies of a decade of underinvestment in our transmission network," the industry body said.
"In addition, many investors are now also awaiting the final scheme design details, and ultimately the outcomes, of Capacity Investment Scheme competitive tender rounds."
Australia plans to invest as much as US$15 billion (AUS$22.7 billion) over the next decade to become a renewable energy superpower and boost its domestic critical minerals economy, the Labor Government said last month.
Also last month, the Australian Energy Market Operator (AEMO) warned that Australia faces electricity reliability gaps over the next decade if urgent investments in transmission infrastructure are not made on time.
By Tsvetana Paraskova for Oilprice.com
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