Australia to double renewable capacity by 2033

This will be supported by the Future Made in Australia package

Non-hydropower renewable energy capacity in Australia is expected to double by 2033 to reach 100.7 gigawatts (GW) from 45.9 GW in 2023 on the back of strong policy support.

In a report, BMI said that the $15.1b (A$22.7b) Future Made in Australia package is aligned with its expectations that the country “will be a key leader in the global push towards a low-carbon energy transition.”

Under the budget, the government has allotted over $39.8m (A$60m) to boost rooftop solar and battery energy storage systems to counter the upward price pressures from rising fossil fuel prices.

This move comes as Australia’s renewable energy power capacity is mainly driven by large-scale power projects such as solar and onshore wind, whilst other markets such as the US and Mainland China are also pushing for undistributed renewables like rooftop solar.

“Once the growth of distributed solar is unlocked, we believe that Australia will experience unprecedented growth of its non-hydropower renewables capacity. This presents upside risks to our forecast, despite Australia already being one of the strongest globally,” the report read.

BMI added that the budget is also aligned with the country’s large-scale renewables growth backed by the Capacity Investment Scheme and existing plans for offshore wind.

“We believe that existing momentum and policy measures to increase large-scale renewable power projects will also receive a boost, with the Federal Budget enforcing the government's commitment to renewables,” the report read, adding that such policies will raise investor and developer confidence.

$1 = A$1.51