The Australian renewable energy market is expected to record a CAGR of more than 8% during 2020 - 2025. Factors, such as supportive government policies, rapid acceptance of domestic solar energy in the past two years (2018 and 2019), and pressure to meet the power demand using renewable energy sources are expected to be the significant contributors to the growth of the market. With the commitment of the government for different cities like Canberra, Hepburn Shire, City of Sydney, and others to provide 100% renewable energy to the city buildings and supplying rest to public lighting, the share of renewable has grown at such a significant rate that Australia achieved its 2020 goal in 2019. Additionally, the declining costs of renewable technologies are becoming competitive with fossil fuel sources, and additional subsidies on renewables are driving the renewable market further. On the other hand, with the absence of any new initiatives, a decline in renewable energy investment in 2019, and limited power capacity by variable renewable energy sources, is expected to hinder the growth of the renewable market in the country.
- Australia witnessed a rapid growth in the solar market during 2018-2019. With the second-highest per-capita solar capacity, following Germany in 2018, Australia successfully increased annual solar installation by three folds in 2018, comparing to the installations in 2017.
- With Renewable Energy Target (RET) of 2020, Australia was aiming to achieve a 20% renewable share in electricity generation. Further aiming for 50% renewable share by 2030, Australia is likely to present a huge opportunity to the players involved in renewable market in the near future.
- Australia has many ambitious renewable projects lined up. With enormous solar, wind, and hydro energy potential, the country is ready to take a leap in the renewable market. Along with six auctioned projects in the state of Victoria in 2018, three in the wind, and three in solar, Australia has many projects with several Gigawatts of capacity in the forecast period.
Key Market Trends
Solar Market With a Large Potential in the Forecast Period
- By the end of 2018, renewable sources generated around 21% of the total electricity in Australia. With an installation capacity of 11 GW, solar energy contributed one-fifth of renewable electricity.
- Rooftop solar had been flooded in late 2018, with more than 2 million Australian homes and businesses powered by rooftop solar PVs, which makes one in five households of Australia generating at least some of its energy using solar power.
- Additional subsidies on solar systems had a very positive impact on driving the solar market. The state of South Australia launched a subsidy scheme worth AUD 100 million (USD 70.5 million) for the installation of home battery systems, to facilitate rooftop solar PV. Along with this, Feed-in Tariff also increased public participation in renewable acceptance.
- With a net installation of more than 3.8 GW in 2018, solar energy witnessed a growth of 45% in the commercial sector and 43% in the residential sector compared to 2017's value. Rooftop solar PV in the commercial and residential sectors contributed significantly with 1.6 GW out of 3.8 GW, reaching more than 8 GW net installed capacity.
- With the upcoming and under construction solar projects, the solar energy market is expected to grow at significant rate.
Future Potential from the Upcoming Renewable Projects
- In 2018, in the state of Victoria, a total six ambitious projects had been auctioned. These six projects include three major solar projects with a collective capacity of 526.4 MW and three wind projects with a combined capacity of 673.5 MW.
- With high potential, proposed wind projects like Asian Renewable Energy Hub with a proposed capacity of 7.5 GW and Forest Wind with an estimated capacity of 1200 MW, the wind energy is expected to drive the Australian renewable market at a considerable rate.
- Solar projects like Bulli Creek Solar farm with a capacity of 1200 MW is to be commissioned in 2020. The project will be completed in several phases and will be housing 3 million solar PV panels supplied by FirstSolar Inc.
- With more than 87 large scale renewable projects under construction or financially committed, that will be generating more than 14 GW of energy after completion, Australia will be leaping toward green energy and reducing its Carbon footprints at a considerable scale.
The Australian renewable energy market is partially fragmented. Some of the major companies include Vestas Wind Systems A/S, AGL Energy Limited, Infigen Energy Ltd, Neoen SA, and Suzlon Energy Ltd.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support