Australian renewables investment breaking records as optimism surges

1 minute read + PDF download  17.07.2023 Simon Harvey, Andrea Frank, Joel Reid, Sebastian Rosholt

Confidence in the Australian renewable energy story has never been higher. Developed in collaboration with Mergermarket, we canvassed the opinions of 100 active domestic and international renewable energy investors to gauge their views on the investment opportunities, trends and challenges in Australia.

To discover why investors are so confident about Australia's renewables sector, read the Australian Renewables Report 2023.

In 2022, soaring investment in renewables projects and infrastructure (US$33bn) and M&A (US$17.4bn) reached record levels, while construction commenced on more than 5,000MW of new large-scale wind and solar farms. From this highpoint, where does the Australian renewables sector go next for the rest of 2023 and beyond?

Key highlights include:

  • Nearly three-quarters of respondents (74%) say they will increase investments in Australia through 2023 (a sharp uptick from 65% in 2021).
  • Investors from the Asia-Pacific region will lead inbound investment: 58% expect a moderate increase while one-third predict a significant increase.
  • New South Wales (60%) scored highest among Australian states and territories as providing an attractive opportunity for future investments.
  • 97% of respondents point to PV solar as offering the most opportunities, while 83% see biomass, biogas, and waste-to-energy projects as having the most opportunities - a noticeable jump from 59% in 2021.
  • 46% of respondents say hydrogen will catch up with expectations and/or reach industry maturity within the next 2 years.
  • Australia’s key strengths:
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Greenfield project opportunities

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Funding and investment opportunities and return on investment

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Legal certainty and regulatory stability

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Government renewable and emissions reduction targets

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https://www.minterellison.com/articles/australian-renewables-investment-breaking-records-as-optimism-surges