Australia’s clean energy goals at risk as solar and wind investment hits nine-year low

Australia’s ambitious clean energy targets are facing a critical challenge as investment in large-scale solar and wind projects plummets to levels not seen since the early days of the renewable energy boom. Industry experts are sounding the alarm about “deep structural issues” that are deterring investors from committing to new renewable energy developments across the country.

According to new data from the Clean Energy Regulator, only 2.5 gigawatts of industrial-scale renewable energy capacity is expected to secure final investment approval this year—a dramatic drop from the 4 gigawatts that received backing in 2024. This sharp decline represents the lowest 12-month average for investment commitments in new renewable projects since early 2017, marking a concerning reversal in Australia’s clean energy momentum.

The investment slump comes at a particularly crucial time for Australia, which has set ambitious targets for transitioning away from fossil fuels. Energy sector analysts warn that while there remains a substantial pipeline of potential renewable energy projects in development, these proposals will remain on paper unless companies can secure the financial backing needed to move forward with construction.

The current investment drought raises serious questions about Australia’s ability to meet its clean energy commitments and could signal broader challenges in the country’s renewable energy sector. Without a significant turnaround in investment activity, Australia may struggle to achieve the rapid expansion of wind and solar capacity needed to reach its climate goals and maintain its position as a leader in the global clean energy transition.