Positive outlook for investing in Australian renewables

2 minute read + PDF download  22.03.2021

What does 2021 hold for investors in Australian renewables? We ask 100 Australian and overseas investors in the renewable energy sector for their insights.

We compare our findings today to those from 2019. This report explores the current trends shaping the Australian renewable energy market, in addition to the main drivers behind deals, opportunity sectors and challenges facing investors.

Key highlights include;

  • Strong international and domestic investor confidence in renewables with 65% of investors saying they will increase their investment in the next 12-24 months
  • 50% of investors said COVID-19 is having no impact on their investment strategy, while another 35% say they will renew investment within the next year
  • Domestic investors are the most positive – 83% will increase their investment in the sector. Increased competitors from overseas investors is a driver
  • Solar, wind and batteries hold huge potential and are seen as the lowest risk and key to providing reliable and consistent energy generation as existing thermal generation reaches end of life
  • 49% of respondents see hydrogen as an attractive investment opportunity, and now less risky
  • Renewables remain compelling to dealmakers. Looking ahead they are viewing energy assets as increasingly attractive targets for infrastructure investors whose current holdings in airports and toll roads are being hard hit by the pandemic
  • Australia's hydrogen landscape will cross an inflection point over the next 12 months
  • The top challenges for investors are policy uncertainty, clarity around incentives and regulatory complexity
  • Mining has the opportunity to benefit through use of renewables – solar and wind – to reduce reliance on fossil fuels for their power generation

Why Australia is an attractive investment destination

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https://www.minterellison.com/articles/positive-outlook-for-investing-in-australian-renewables

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