Trump Factor Unlikely to Disrupt Australia's Clean Energy Progress

On November 11, 2024, industry reports indicated that Australia’s clean energy transition has regained its momentum after several months of robust investment, a trend that is expected to continue despite Donald Trump's potential return to political power.

According to the Clean Energy Council's latest report, Australia achieved its highest level of clean energy investment since late 2022. Chief executive Kane Thornton emphasized to AAP that investments would proceed regardless of the "Trump factor" or the United States’ engagement in international climate agreements.

The Quarterly Renewables Report revealed that during the third quarter, approximately 1400 megawatts (MW), equating to $3.3 billion, in new large-scale renewable energy projects reached financial commitment.

In terms of energy storage—an essential component for stable energy generation—investment soared to a record 1235 MW/3862 MWh in the quarter, marking a 95 percent increase compared to the same period a year prior.

There has also been a resurgence in onshore wind projects, with 1758 MW of new capacity dedicated in 2024 thus far.

Thornton noted that the increasing level of activity suggests that previously challenging economic conditions are beginning to improve. Notably, investment made during the September quarter alone surpassed all investments made throughout 2023.

Based on the ongoing projects, experts predict that by the close of 2025, nearly half of Australia’s energy supply will come from renewable sources.

Thornton highlighted that since 2020, investors have poured $40 billion into renewable energies and storage. If this robust investment trend continues, Australia aims to achieve 82 percent renewable energy generation by 2030.

He also pointed out a global shift in clean energy investment towards the U.S., particularly after President Joe Biden introduced the Inflation Reduction Act in 2022. However, he noted that if U.S. investment were to stall, Australia could emerge as a more appealing option for these investments.

Nonetheless, Thornton cautioned that substantial investments continue to flow into Republican-led states in the U.S., fueled by significant incentives that drive the renewable market both there and in Australia.

investment, renewable, energy