A new report from the Clean Energy Council indicates that Australia’s clean energy transition is gathering pace, with renewed investment in large-scale projects expected to support domestic manufacturing and supply chain activity across the sector.
In its Clean Energy Australia 2025 report, the council said new financial commitments to large-scale renewable energy generation reached approximately $9 billion in 2024, up from $1.5 billion in 2023. When combined with utility-scale storage, total clean energy investment rose to around $12.7 billion, representing the highest single-year figure on record.
According to the report, 4.3 gigawatts (GW) of new large-scale generation capacity reached financial close in 2024. Thirteen large-scale solar projects, totalling 1.9 GW, and eight wind projects, totalling 2.2 GW, secured commitments during the year.
The council described the increase as a significant turnaround from 2023, when investment levels were comparatively subdued.
Despite the improvement in financial commitments, commissioned large-scale generation capacity declined in 2024. A total of 2 GW across 21 projects was connected to the grid, down from 2.8 GW in 2023.
The completed projects included 14 large-scale solar farms, six wind farms and one hybrid solar and wind development.
The report noted that 59 large-scale renewable energy projects were under construction at the end of 2024, with a combined capacity of approximately 9.9 GW, up from 7.5 GW a year earlier.
Thirty-eight large-scale batteries were also under construction, representing 8.7 GW / 23.3 gigawatt hours (GWh) of capacity. Five battery storage projects, totalling 619 megawatts (MW) / 1,677 megawatt hours (MWh), were connected during the year.
Rooftop solar continued to be the largest source of new capacity added to the grid. The report states that 3.2 GW of rooftop solar capacity was installed in 2024, slightly above the 3.1 GW recorded in 2023. More than four million rooftop solar systems are now installed across households and small businesses nationwide, with 332,016 systems added during the year.
Renewable energy accounted for 40 per cent of Australia’s total electricity generation in 2024, up from 39.4 per cent in 2023. Wind contributed 13.4 per cent, rooftop solar 12.4 per cent and large- and medium-scale solar 7.2 per cent.
Coal-fired generation continued to decline overall, although gas-fired generation rose slightly during the year due to outages and lower wind output in parts of 2024.
The council cited the expansion of the federal Capacity Investment Scheme as a key policy driver. In late 2024, 19 projects with a combined generation capacity of 6.4 GW were selected in the scheme’s first tender round, with those projects expected to move towards financial close.
The report also references modelling by the Australian Energy Market Operator, which estimates that around 6 GW of utility-scale generation capacity will need to be added each year to replace retiring coal-fired power stations and meet emissions targets.
While 2024 commissioning levels were below that benchmark, the council said the rise in projects reaching financial commitment provides grounds for cautious optimism.
The Clean Energy Council said sustained collaboration between industry, governments and communities would be necessary to convert the current investment pipeline into operational projects, underpinning further expansion in renewable generation, storage and associated manufacturing activity.
