In the first half of 2025, investment in new wind and solar projects fell 64% compared to the same period in 2024, signalling a slowdown in Australia’s energy transition.
BloombergNEF’s latest market outlook warns Australia must accelerate decarbonisation to meet climate and energy targets.
Policy levers like the Renewable Energy Target and Capacity Investment Scheme may be needed beyond 2030, with NSW announcing new stretch targets and larger tenders.
Utility-scale solar investment reached $556 million, down from $1.6 billion in 2024, while no wind projects reached financial close - the first such absence since early 2021.
BloombergNEF estimates Australia needs to invest around $A92 billion annually until 2030 to hit its 2050 net zero target.
Eight deals closed in the past six months, totalling 586 MW, including the 339 MW Bungama solar farm and battery ($404 million) and the 108 MW Fulham solar farm.
Delays in key transmission projects, slow permitting and grid connection, and social licensing challenges hindered project progress.
The May 2025 federal election added to investment uncertainty, contributing to stalled wind project commitments.
Despite high government support for wind, wind farm development slowed sharply compared to earlier projections.
Currently, 9 GW of utility-scale solar and wind is under construction, with forecasts of 42.9 GW more by 2035; utility-scale battery capacity is set to grow from 9.1 GW under construction to 20.1 GW by 2035.