More than $3.3bn of large-scale renewable energy projects signed off in September quarter

A wave of new large-scale renewable energy generation projects were signed off in the September quarter, marking the healthiest investment data for the sector in two years.

The Clean Energy Council reports commitments of more than 1400MW in new large-scale renewable energy generation projects in the third quarter of 2024.

Strong investment support has underpinned commitments of more than 1400MW in new large-scale renewable energy generation projects, worth $3.3bn, in the third quarter of 2024, according to the Clean Energy Council’s latest Quarterly Renewables Report.

Clean Energy Council chief executive Kane Thornton said that the Q3 report reflected the healthiest investment data for new renewable energy generation projects since late 2022, indicating an improvement in the sector.

“This is terrific news for energy consumers across the country, who will benefit from the next generation of power plants coming online, putting downward pressure on electricity prices,” he said.

“If we sustain the level of investment for new wind and solar power plants which we have seen in the third quarter of this year, we can get back on track to achieving Australia’s target of 82 per cent renewable energy generation by 2030.”

The 1405MW of capacity of new investment in large-scale renewable generation projects over the third quarter exceeded the annual total for 2023.

One of the highlights of the new investment data is the rebound from onshore wind projects, with 1758MW of new capacity committed in 2024 to date.

There have been 1758MW of new onshore wind projects committed to so far in 2024.

Investment in energy storage projects, critical for the growth of generation and grid stability, also continued to power ahead, with eight projects setting a new 12-month quarterly average record with 1235MW of new capacity (3862MWh of energy output) reaching financial commitment – a 95 per cent increase compared to the same time during 2023.

Mr Thornton said the third quarter’s energy storage record against the 12-month quarterly average was very positive.

“More storage means a more reliable, stable and flexible electricity system,” he said.

“The increasing activity indicates that the challenging economic conditions are beginning to ease, and the hard work by government agencies and industry to address a wide range of legacy issues across our grid, planning and institutional settings, are starting to bear fruit.

“There is a lot more work still to be done, but the signs are encouraging.”

Over 40 per cent of Australia’s electricity supply now comes from renewable energy, including hydro, solar and wind, with the renewable energy share expected to climb to almost 50 per cent by the end of next year, based on the projects under construction today.

Australia is on course to add 7GW of new renewable energy capacity this year, the Clean Energy Regulator said in September, as a near doubling in expected large-scale zero emission projects and continued growth in households and businesses bolting on rooftop solar provides a boost to Labor’s claim it can deliver its transition plan.

The Clean Energy Regulator said 1.5GW of large-scale renewable power station capacity was approved during the first six months of the year. A further 2.5GW of applications were under assessment at the end of June 30, a near doubling what was previously anticipated.

As a result, the Clean Energy Regulator expects renewable energy will provide around 42 per cent of the country’s power this year, a steady increase though critics insist the pace underscores their scepticism about the prospects of Australia meeting 2030 targets.

The Clean Energy Regulator also hints of increased progress. It said there has been an up-tick in final investment decisions made in new renewable energy projects. Some 1.8GW of projects have received commitments from developers during the first six months of 2024, up on 1.6GW of projects that secured financial investment decisions throughout 2023.

Originally published as More than $3.3bn of large-scale renewable energy projects signed off in September quarter