Australia’s renewable energy ambitions could be constrained without stronger domestic manufacturing and supply chain capabilities, according to new research from Adelaide University, which highlights structural risks tied to global dependencies.
The study, conducted with researchers from Flinders University and published in the Australasian Journal of Environmental Management, finds that while renewable energy generation is advancing, broader progress is being limited by supply chain vulnerabilities, grid constraints and fragmented policy settings.
“Australia has a unique opportunity to become a global leader in renewable energy, but this will require coordinated action across government, industry and research sectors,” said Dr Naresh Gupta from Adelaide University’s College of Business and Law.
The research points to domestic manufacturing as a critical area for development, alongside investments in infrastructure and policy alignment.
It recommends strengthening local production capacity, improving grid resilience, enhancing coordination between stakeholders and building more sustainable supply chains.
“Rather than focusing solely on energy generation, the research calls for a more integrated approach that combines technological innovation, infrastructure development and policy alignment,” Dr Gupta said.
The study highlights that Australia’s transition is particularly exposed due to its reliance on imported materials and technologies essential to renewable energy systems.
“The biggest risk to renewable energy is not generation, it is the supply chain behind it,” Dr Gupta said.
According to Professor Indra Gunawan from Flinders University, Australia has made progress in solar and wind energy, supported by natural resources and increased investment, but structural challenges persist.
“Australia has made significant progress in solar and wind energy, supported by abundant natural resources and growing investment; however, structural challenges remain, including reliance on imported technologies, grid integration constraints and uneven regional development,” Professor Gunawan said.
“Addressing these issues is essential not only for meeting climate targets, but also for strengthening energy security and long-term economic resilience.”
The research draws on a review of academic and industry studies and is guided by frameworks including energy transition theory and sustainable supply chain management. It calls for long-term, integrated strategies that align energy, industry and supply chain policy, alongside targeted investment in local manufacturing, innovation and workforce capability.
“Renewable energy is no longer just an environmental priority, it is central to Australia’s economic and energy future,” Dr Gupta said.
