Of the major renewable energy projects, total capital spend in 2018-19 was estimated at $A8.3 billion. The potential pipeline is expected to grow to close to $A10 billion in 2019-20 and 2020-211, up from below $A2 billion in the mid-2010s.
"Australia’s uptake of renewable energy generation has been more pronounced than in much of the rest of the world”
ANZ Research expects renewables investment to grow further based on the current strong pipeline of projects, reflecting pent-up investment appetite, corporate sourcing of renewable energy, ongoing technological improvements including in battery storage, and pro-active government policies.
The planning and construction time for renewable energy projects is short, relative to other forms of energy. Most projects are under construction for months, rather than years, in part owing to their relatively small size compared to major fossil fuel plants. The pipeline for renewables projects is therefore likely to understate the capital expenditure of new projects due for completion within the forecast horizon.