Australia Renewable Energy Market: Industry Trends, Share | 2025-2033

Australia Renewable Energy Market Overview

Market Size in 2024: USD 165.8 Billion

Market Size in 2033: USD 687.9 Billion

Market Growth Rate 2025-2033: 16.6%

According to IMARC Group's latest research publication, "Australia Renewable Energy Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The Australia renewable energy market size was valued at USD 165.8 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 687.9 Billion by 2033, exhibiting a CAGR of 16.6% during 2025-2033.

How Government Strategy and Storage Innovation Are Revolutionizing Australia's Renewable Energy Future

• Ambitious National Target: Australia's Renewable Energy Target (RET) aims for a 50% share of renewable energy in the national electricity mix by 2030. This goal is driving significant investment in solar, wind, and hydro infrastructure. It also supports job creation and economic growth in the clean energy sector.

• Mega Infrastructure Project: Snowy Hydro 2.0 is one of Australia's largest renewable energy projects. It will add 2,000 megawatts of pumped hydro storage capacity. This will help stabilize the grid and address renewable energy variability, improving energy security during the shift to a low-carbon economy.

• Battery Storage Revolution: Large-scale lithium-ion battery systems are capturing surplus solar and wind energy for later use. This ensures a reliable power supply and grid stability as variable renewable sources increase. It also allows for greater energy independence for consumers across the country.

• Green Hydrogen Leadership: Australia is set to become a global leader in green hydrogen production. It can use its abundant renewable resources and strong export potential to Asia. This shift will create significant economic opportunities in transportation, manufacturing, and energy sectors.

• Renewable Energy Zones: The strategic creation of Renewable Energy Zones (REZs) in areas rich in resources is speeding up approval processes. It is attracting investment and lowering grid connection costs, making renewable projects more economically viable. This also helps speed up the achievement of national clean energy goals.

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Australia Renewable Energy Market Trends & Drivers:

Australia's renewable energy revolution is driven by a strong government plan through the Renewable Energy Target and Clean Energy Finance Corporation programs. The ambitious goal of achieving 50% renewable energy in the national electricity mix by 2030 is more than just a policy dream; it’s a clear roadmap that is attracting billions in investments for solar, wind, and hydro projects. The Clean Energy Finance Corporation's financing helps lower high upfront costs for developers, making large-scale projects more accessible and speeding up the use of new technologies. Government incentives like the Capacity Investment Scheme ensure a reliable energy supply while encouraging private sector involvement, leading to partnerships that are reshaping Australia's energy landscape.

Battery storage technology is becoming essential for Australia's renewable energy shift, tackling the key issue of intermittency that has limited solar and wind use in the past. Large-scale lithium-ion systems are enhancing grid stability by storing excess renewable energy for use during peak demand or when production is low. This capability is crucial as Australia increases its use of renewable sources, ensuring a steady power supply, regardless of weather changes. Investment in battery storage is also creating new business models around energy independence. This allows consumers and businesses to make better use of renewable energy while helping to strengthen the overall grid.

The Snowy Hydro 2.0 project shows Australia's dedication to building infrastructure that aids large-scale renewable energy integration. Adding 2,000 megawatts of pumped hydro storage capacity addresses variability challenges and takes advantage of Australia's natural geography for energy storage. This innovative project uses surplus renewable energy to pump water to high reservoirs and releases it through turbines during peak demand to generate electricity. Beyond increasing capacity, Snowy Hydro 2.0 improves grid reliability and energy security. It illustrates how large infrastructure investments can support Australia’s shift to a low-carbon economy while keeping industry competitive and energy affordable.

Australia Renewable Energy Market Industry Segmentation:

Type Insights:

• Hydro Power

• Wind Power

• Solar Power

• Bioenergy

• Others

End User Insights:

• Industrial

• Residential

• Commercial

Regional Insights:

• Australia Capital Territory & New South Wales

• Victoria & Tasmania

• Queensland

• Northern Territory & Southern Australia

• Western Australia

Recent News and Developments in Australia Renewable Energy Market

• February 2025: Australian Government reaffirmed commitment to 50% renewable energy target by 2030 through expanded Renewable Energy Target initiatives, while Clean Energy Finance Corporation increased funding allocations for large-scale solar, wind, and battery storage projects nationwide.

• March 2025: Snowy Hydro 2.0 project achieved major construction milestone with 2,000 megawatts of pumped hydro storage capacity on track for completion, strengthening grid reliability and supporting renewable energy integration across Australia's eastern seaboard markets.

• June 2025: Battery storage investment surged with multiple large-scale lithium-ion projects announced across Queensland and New South Wales, while green hydrogen production initiatives secured significant international partnerships positioning Australia as Asia-Pacific export leader in clean energy technologies.

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