The Australian government’s goal to generate 50 per cent of electricity from renewable sources by 2030 provides a stable and supportive regulatory environment.
Investors expect government policies at state and federal levels to become more supportive over the next two years and 85 per cent of investors say federal and state policies will be supportive or very supportive towards renewables in 2023 and beyond.
Very few investors felt Australia’s governments would lack support in the near future and 72 per cent say government renewable and emissions reduction targets are a key strength.
New South Wales’s clear road map and high levels of energy demand, along with the support of renewable energy zones (REZ) has made it the most attractive investment location for future investments for 60 per cent of investors.
The renewable energy zones, particularly the Central-West Orana REZ and New England REZ, will provide the backbone for massive forward investment in generation, firming and storage and provide a clear investment signal. After NSW, Victoria is considered the next most attractive location.
Mergers and acquisitions (M&A) will continue to be a key driver of future trends with half the investors pointing to growth through acquisition, along with 52 per cent saying a bolt-on acquisition was among the main objectives of their most recent deal.
Oil and gas investors who want to decarbonise their activities are active and more than 10 per cent of renewables deals by volume in 2022 had oil company backing.
The M&A landscape for Australian renewables is strong, buoyed by the announcement of renewable energy targets, the scheduled shutdown of coal-fired generators and a supportive Federal Government policy environment.