On the strength of policy support, it is anticipated that Australia’s total non-hydropower renewable energy generation will increase to 97.6 terawatt-hours (TWh) in 2031 from 61 TWh, increasing by 5.6% yearly. Non-hydro renewable sources are anticipated to make up around 34% of Australia’s overall energy mix by 2031, according to an analysis by Fitch Solutions.
The Climate Change Act 2022 and the Climate Change (Consequential Amendments) Acts 2022, which were passed in Australia, were mentioned as supporting the expansion of the low-carbon industry.
These actions further Australia’s goals of reaching net-zero carbon emissions by 2050 and a 43% reduction in emissions from 2005 levels by 2030. Additionally, the Australian Renewable Energy Agency as well as the Clean Energy Finance Corporation- CEFC are increasing funding for the renewable sector.
According to Fitch, Australia’s policy momentum for a low-carbon power sector is accelerating, fostering the growth of renewables and providing developers and investors with growing transparency and assurance for policy support in the renewables sector.
They believe that adding emission objectives to legislation and stepping up efforts to mobilise financing for the development of renewables will give industry players clarity and a clear direction on what the administration will have to do, it continued. The funding schemes were titled Powering Australia and Rewiring The Nation. The government announced in November that it would invest A$500 million in the Powering Australia Technology Fund to help the CEFC commercialise clean energy and renewable energy innovations.