Trump Factor Unlikely to Disrupt Australia's Clean Energy Progress

As recent data indicates, Australia’s shift to renewable energy is gaining strong momentum, unaffected by the potential political changes associated with Donald Trump’s return to power.

The Clean Energy Council has reported that Australia has seen its highest levels of clean energy investment since late 2022, showcasing a revitalized commitment to the energy transition.

Kane Thornton, the Chief Executive of the Clean Energy Council, explained to AAP that investment trends indicate a resilience that is likely to continue, irrespective of the "Trump factor" or the United States’ involvement in worldwide climate agreements.

The latest Quarterly Renewables Report highlights a significant recovery in Australia’s energy transition. From July to September, 1,400 megawatts—amounting to $3.3 billion—of new large-scale renewable projects have achieved financial commitment.

Crucially, investments in energy storage, which is essential for stability and an increase in renewable energy production, reached a record level of 1,235 MW/3,862 MWh in the quarter. This marks a remarkable 95 percent increase over the same period in 2023.

Onshore wind projects are also on the rise, with an impressive 1,758 megawatts of new capacity pledged in 2024 thus far. Mr. Thornton noted that this uptick signifies a gradual improvement in challenging economic conditions, evidenced by investments in the September quarter alone surpassing that of all of 2023.

Looking ahead, if the current trajectory continues with the ongoing projects, renewable energy is expected to contribute nearly half of Australia’s energy supply by the conclusion of 2025.

Mr. Thornton highlighted that, since 2020, investors have directed around $40 billion into renewable projects and energy storage. Sustaining a strong performance from July to September could bring Australia closer to achieving its target of generating 82 percent renewable energy by 2030.

Mr. Thornton also mentioned a global trend where clean energy investments have been shifting towards the U.S., particularly after the Biden administration introduced the Inflation Reduction Act in 2022. However, he pointed out that should this momentum decline within the U.S., Australia might become more attractive for such investments.

Moreover, substantial investments continue to flow into Republican-led states in the U.S., driven by strong incentives promoting renewable energy, which mirrors the positive drivers seen in Australia.

CleanEnergy, Investment, Australia