The country currently has a pipeline of 102GW renewable projects.
Despite challenges such as bushfires and a halt in construction activities due to the pandemic, Australia is still headed towards achieving the fastest energy transition to renewable sources in the world, according to a report by GlobalData.
In particular, the country’s declining cost of distributed energy resources, variable energy, and the willingness to provide cheap electricity to its consumers will be the strong underlying catalysts for the roadmap towards achieving 94% renewable generation mix by 2040.
Furthermore, its strong pipeline of solar and wind projects will bring investor confidence in the bankability of the market. GlobalData’s senior power analyst Somik Das commented that the country currently has a pipeline of 102GW renewable projects of largely wind and solar.
“The government has put the final nail in the coffin for coal-fired power plants, having no plans to continue coal and gas generators beyond the planned retirement dates. In fact, there is potential for coal and gas generators to retire earlier if renewables provide greater cost benefits before the 2040 horizon,” Das said.
GlobalData noted that solar PV will spearhead installations in 2020, followed by wind power. Solar PV and wind were anticipated to represent over 25% of the total installations this year, compared to 24% shaped last year.
“The steep reduction in module costs, improved efficiency, and low power purchase agreements (PPA) have placed solar PV next to wind as green transformation flag bearers,” Das added.