Exploring Australia's renewable energy landscape: policies, programs and government strategies

Welcome to the final instalment of our three-part series on environmental infrastructure in Australia. In this update, we provide a high-level summary of Australia’s renewable energy landscape, focusing on the federal, state and territory governments' policies, strategies and programs to achieve the nation’s net zero objectives.

---

Australia presents a dynamic and evolving landscape for renewable energy investment, driven by increased policy stability, the push for mandatory climate disclosures, and the exploration of innovative technologies.

The results of a recent survey published by the Investor Group on Climate Change (IGCC) in Mar-24 highlight that investors are increasingly optimistic about Australia's climate policy, reflected in a notable reduction in perceived policy and regulatory uncertainty.

Nonetheless, as with Australia’s waste and water sectors, the states and territories all have different policies which contributes to complexity for investors. Set out below is a snapshot of the different policies, strategies and programs of the Federal, state and territory governments to achieve the nation’s net zero objectives.

---

Australia’s Renewable Energy Landscape

• Australia has increased its share of renewable energy from 15% in 2017 to 39% in 2023, driven by household investments and large-scale energy projects;

• The Commonwealth Government has set a target of 82% renewable energy by 2030, necessitating 221,000 GWh annually from renewables, up from the current 80,000 GWh; and

• Solar power is now one of the cheapest sources of electricity available, and Australia leads the world in rooftop solar installations. As of 31 October 2023, over 3.5 million rooftop solar PV systems have been installed nationwide, equating to approximately one in three households.

Federal Government policies, strategies and programs

• The Federal Government Powering Australia plan includes several commitments to lower emissions by increasing renewable energy generation. The specific target includes a 43% reduction in GHG by 2030 and Net Zero by 2050. 

• Several commitments included in the Powering Australia plan include:

• Expanding the Capacity Investment Scheme to target a total of 32 GW new capacity by 2030;

• Delivery of the Rewiring the Nation program which plans to invest $20bn to modernise Australia’s electricity grid and deliver new and upgraded transmission infrastructure;

• Building on the Hydrogen Headstart program with a $4bn to support the development of large-scale renewable hydrogen projects. 

• Increased investment in the Australian Renewable Energy Agency and funding through the Future Made in Australia innovation fund;

• Delivering the objectives outlined in the National Electric Vehicle Strategy which includes increasing the supply of EVs, developing the necessary resources, systems, and infrastructure to support rapid EV adoption and incentivise higher demand for electric vehicles. 

• The targets included in the Powering Australia plan are legislated by the Climate Change Act 2022 (Cth). The plan provides the nation’s agenda for achieving net zero whilst the Net Zero Plan is developed. 

• The Federal Government’s Net Zero Plan extends the nation’s climate action, guiding the transition to net zero GHG by 2050, consistent with international commitments. The plan will encompass all major economic sectors, setting policies to reduce emissions, foster investment in low emissions technologies, and establish an ambitious 2035 emissions reduction target. The plan is currently being developed.

---

State Government policies, strategies and programs

Table 1: Renewable energy sector by state

	Policies, strategies and targets	Notable developments
New South Wales	The NSW Government aims to halve emissions by 2030, and achieve net zero by 2050. Key policies and strategies include: NSW Electricity Strategy: the strategy aims to enhance NSW’s energy resilience and efficiency by developing Renewable Energy Zones, saving energy during peak demand, supporting new electricity generation and simplifying energy business operations. It expects to attract $8bn in private investment and create 1,200 jobs, aligning with the state’s Net Zero Plan Stage 1:2020-2030. The strategy is a precedent of the Electricity Infrastructure Investment Act 2020. Electricity Infrastructure Roadmap and Electricity Investment Act 2020 (NSW): a 20-year plan to create cheap, clean and reliable electricity. It aims to coordinate investment in transmission, generation, storage, and firming infrastructure, expecting to attract over $32bn in private investment by 2030, and delivering 12 GW of renewable electricity and 2 GW of long-duration storage. NSW Hydrogen Strategy: aims to reduce costs of hydrogen, offering up to $3bn in incentives, increase annual production and capacity, and decarbonise hard to abate sectors by 2050. NSW Electric Vehicle Strategy: includes investments of $209m to ensure widespread EV charging station coverage. The investment consists primarily of EV fast charging grants to install ultra-fast charging stations at 100 km intervals statewide and every 5 km in metropolitan areas. Draft energy policy framework: the framework includes guidelines for wind energy, transmission, solar energy, benefit-sharing and private agreement, and how the impacts of projects and new infrastructure will be assessed and managed.	Australia’s largest single tender for renewable energy projects as part of the National Capacity Investment Scheme (CIS) opened in late May and aims to add 6 GW to the National Electricity Market, with at least 2.2 GW allocated to NSW. The NSW Government opened the largest energy storage tender in NSW history in late May-24 as part of the NSW Electricity Infrastructure Roadmap Tender 5. The NSW Government successfully procured a new transmission network operator as part of the Central-West Orana REZ in Dec-24.
Queensland	The Queensland Government aims to achieve 50% renewable energy generation by 2030 and 80% by 2035. Key policies and strategies include: Energy (Renewable Transformation and Jobs) Act 2024: the act legislates key commitments from the Queensland Energy and Jobs Plan, including the state’s energy targets. Queensland Energy and Jobs Plan: launched in 2022, the plan outlines how the state will achieve its transformation toward clean, reliable and affordable energy focusing on actions to increase investment and give certainty to communities. The state currently has 54 large-scale renewable energy projects operating, under construction or financially committed. Queensland Renewable Energy Zone Roadmap: the roadmap provides the framework for connecting 22GW of renewable energy to the QLD grid. It currently identifies 12 potential REZs across the state. Queensland Renewable Energy Procurement Policy: outlines the QLD Government’s approach to procurement and how it applies to renewable energy investment and infrastructure.	The recent release of the Queensland Renewable Energy Zone Roadmap provides the framework to strategically connect 22 GW of renewable energy to the grid. AEMO projects that approximately 46GW of new utility-scale wind and solar energy will be necessary to replace all fossil fuel generation and retiring capacity of early variable renewable energy projects in Queensland. With 12 REZs planned there is a renewables potential of over 50GW of solar capacity and 42GW of wind capacity.
Victoria	The Victorian Government aims to achieve 65% renewable energy generation by 2030 and 95% by 2035. Key policies and strategies include: Renewable Energy (Jobs and Investment) Act 2017: Legislation underpinning the state’s renewable energy targets, with specific actions outlined for offshore wind generation capacity and energy storage. Victorian Solar Homes Program: the Solar Homes Program offers eligible Victorian households rebates and interest-free loans for solar panels, hot water systems and solar batteries as well as rebates for homes under construction and for rental properties. The legislation was amended on 27 March 2024 to increase the energy targets for both 2030 and 2035 (now 65% and 95%, respectively). Zero Emissions Vehicles Roadmap: outlines the VIC Government’s objective to achieve a 50% share of zero emissions light vehicles sales by 2030. The policies and programs supporting the program include a Zero Emissions Vehicle Subsidy Program, roll-out of electric vehicle charging infrastructure, a zero emissions vehicle public transport bust trail and establishment of a Commercial Sector Zero Emissions Vehicle Innovation Fund. Renewable Hydrogen Industry Development Plan: the VIC Government has released a development plan for the renewable hydrogen industry which focuses on job creation, energy export, innovation, skill development, and emissions reductions.	Offshore Wind Energy Victoria (OWEV): As part of the Department of Energy, Environment and Climate Action, the OWEV is responsible for supporting offshore wind development in the state. The Implementation Statement 3 outlines the VIC Government’s approach to procurement, transmission infrastructure, ports, environmental protection and traditional owner partnerships. The Australian Government announced the first round of successful feasibility licence applicants for the Gippsland offshore wind-declared area in May-24. The Victorian Government has allocated $1bn to bring back the State Electricity Commission (SEC) to provide reliable and affordable government-owned energy to the state. The initial investment from the SEC will help build one of the world’s biggest battery projects.
South Australia	The South Australian Government aims to halve GHG by 2030 and achieve net zero emissions by 2050. Key policies and strategies include: Climate Change Action Plan 2021-2025: the plan outlines the objectives and actions to accelerate the renewable energy economy, develop a renewable hydrogen industry, attract and grow businesses powered by renewables and support the uptake of low and zero emission vehicles and fuels. South Australia’s Hydrogen Action Plan: includes key performance indicators to accompany increased investments in hydrogen infrastructure, the establishment of a world class regulatory framework, fostering innovation and integrating hydrogen into the energy system. Electric Vehicle Action Plan: outlines the South Australian Government’s initiatives and actions to accelerate the uptake of electric vehicles across the state. This includes delivering a statewide charging network, government procurement and sponsorship encouraging business uptake of EVs and EVs the default choice of business fleets, in particular taxi and rideshare by 2025.	The first of four lines have been completed as part of the 900km EnergyConnect infrastructure project which is expected to increase sharing of renewable energy between NSW, VIC and SA. South Australia brought forward its goal to achieve 100% renewables by 2027. The decision announced in Q1 2024 seeks to accelerate the decarbonisation initiatives.
Western Australia	The Western Australian Government aims to reduce GHG by 80% below 2020 levels by 2030 and net zero by 2050. Key policies and strategies include: Western Australian Climate Policy: the policy highlights the state’s commitment to achieving its climate target with a focus on clean manufacturing and future industries, transforming energy generation, storing carbon, low carbon transport and resilient cities. Sectoral Emissions Reduction Strategy: outlines the least-cost pathways to achieve net zero emissions and identify priority actions for electricity, industry, buildings and waste, transport, agriculture and land. Western Australia's Battery and Critical Mineral Strategy 2024-2030: focus areas of the strategy include unlocking investment in enabling infrastructure, attracting investment, utilisation of robust and efficient environmental and governance (ESG) frameworks, engaging with first nations people and supporting strategically important projects.	The Western Australian Government announced increased investment to expand the Clean Energy Fund which focuses on funding innovative clean energy projects in the state that deliver key objectives. These include cost-effective solutions to reduce GHG emissions and delivering community benefits. First WA tender announced in Apr-24 as part of the Capacity Investment Scheme will target 500MW of renewables. The Bunbury region is identified as one of 6 areas in WA suitable for offshore wind development given its proximity to high electricity demand, skilled energy and manufacturing workforce, consistent natural resource endowment and industry interest.
Australian Capital Territory	The ACT Government aims to more than halve emissions by 2025 and achieve net zero emissions by 2045. Key policies and strategies include: ACT Climate Change Strategy 2019-25: the strategy includes actions concerning transport, community leadership and just transition, land use and biodiversity, energy, buildings and urban development, and waste avoidance and management. Climate Chnage and Greenhouse Gas Reduction ACT 2010: the emissions targets set by the ACT are legislated. An independent review was conducted in 2021 with several amendments made to the existing legislation. ACT's Zero Emissions Vehicles Strategy 2022-2030: the strategy focuses on greater industry support and development to achieve emissions vehicles sales target of 80-90% by 2030.	The ACT announced it has wholly adopted the 2022 National Construction Code in Jan-24. Every new home is now required to meet a minimum energy standard of seven stars. Funding available through the Sustainable Household Scheme supports the emission reduction targets by incentivising the transition to fully electric household appliances, electric vehicles with charging infrastructure and battery storage systems.
Tasmania	The Tasmanian Government aims to more than double its installed renewable generation capacity to 200% by 2040. Key policies and strategies include: Tasmanian Renewable Energy Action Plan: the energy plan details the state’s vision for a renewable energy future. It establishes clear targets to attract large-scale investment and expand generation capacity, including transforming Tasmania into a global renewable energy powerhouse, making energy work for the Tasmanian community and growing the economy. Renewable Energy Coordination Framework: the development of the Renewable Energy Coordination Framework is an outcome of the Tasmanian Renewable Energy Action Plan. The framework sets out clear actions to deliver the objectives of increased renewable energy capacity. Key actions include adopting an integrated infrastructure planning approach (including the establishment of a renewable energy zone coordinator), optimal siting of projects and for the Government, building strong communities and enabling new investments. Tasmanian Hydrogen Action Plan: the plan outlines the actions and development pathway for Tasmania to become a significant global supplier of renewable hydrogen for export and domestic use.	The Tasmanian Government announced plans to consult on the boundaries for its first renewable energy zone in the North West which is planned to support 1 GW of renewable energy capacity in May-24. The Federal Government allocated 300MW of renewable energy projects in Tasmania as part of the Capacity Investment Scheme (CIS).
Northern Territory	The Northern Territory aims to achieve 50% renewable energy generation by 2030. Key policies and strategies include: Remote Power Systems Strategy: the Territory Government is developing a strategy to deliver 70% renewable energy to 72 remote communities currently reliant on diesel. The strategy builds on the Solar Energy Transformation Program (SETuP) and focuses on local industry opportunities, job creation and skill development. Northern Territory Renewable Hydrogen Masterplan: the master plan is a framework to develop a renewable hydrogen industry in the Territory, focusing on enabling activities to attract private investment. It builds on the Northern Territory Renewable Energy Hydrogen Strategy and outlines two parts to achieve long-term objectives of the Territory including: laying the foundations, and scaling to export.	The Territory Government’s Home and Business Battery Scheme (HBBS) achieved a milestone with more than 2,000 territory homes and businesses installing rooftop solar solutions in Feb-24. Eligible households and businesses are able to obtain up to $5,000 for the purchase and installation of new rooftop systems , including battery or storage. The 2024 Territory budget includes funding to support the continuation of the Remote Power System Strategy program and development of renewable energy hubs in the Territory.

---

Considering your project development requirements or selecting a preferred contracting model? Connect with our team and let's continue the conversation.