Renewable energy in Australia is based mainly on biomass, solar, wind, and hydro generation technologies. Over a third of all electricity generated in Australia is now from renewable sources, a proportion that is increasing in line with global trends . Australia's Energy Market Operator AEMO reports the nation could phase out coal power before 2040.
History Australia has large fossil fuel reserves, and most states historically developed an energy network heavily reliant on coal. However, in Tasmania, the first hydro-electric scheme began producing electricity as early as 1916. Hydro Tasmania is now the main energy provider in that state. In mainland Australia, large-scale projects such as the Snowy Mountains Hydro Scheme have produced renewable energy since the 1950s. Australian researchers at UNSW set up the first solar research lab in 1974, and developed the world's first solar cell in 1981. UNSW student Dr Zhengrong Shi started the first solar panel manufacturing company in China in 2001. Small-scale solar projects such as the Rainbow Power company began producing energy for local Australian consumers in the 1980s.
Recent growth Renewables accounted for close to 40% of Australia's total electricity supply as of 2024. Wind and rooftop solar energy in particular have grown since 2010. Australia now boasts the highest uptake of rooftop solar in the world. The growth in large-scale renewable energy has been stimulated by recent government energy policy in order to reduce Australia's greenhouse gas emissions and increase energy security. The Australian Renewable Energy Agency (ARENA) was established as an independent government agency in 2012 to improve the competitiveness of renewable energy technologies and to encourage innovation in the industry. Pros and cons of various types of renewable energy are being investigated, and more recently there have been trials of green hydrogen and wave power. Australia ratified the Kyoto Protocol in 2007, and in 2016 became a party to the Paris Agreement, an international agreement that binds member countries to reduce the greenhouse gas emissions responsible for climate change. IPCC reports show parts of Australia are at real risk from climate change. As of 2024, renewable energy is seen as a good investment; many companies now operate in Australia, including BP Solar, Eurosolar, Hydro Tasmania, Origin Energy, and Pacific Blue.
Government policy
As in many other countries, renewable energy in Australia has been encouraged by government energy policy to limit climate change, reduce oil import dependency, and stimulate the economy. A 2019 article raised concerns about environmental sustainability for future generations, as it seemed that the then federal government had no renewable energy policy beyond the year 2020. The Liberal Party's energy minister, Angus Taylor, stated that the government would not be replacing the Renewable Energy Target (RET) after 2020.
International agreements Australia ratified the Kyoto Protocol in December 2007 under the then newly elected Prime Minister Kevin Rudd. Evidence suggests Australia will meet its targets required under this protocol. Australia had not ratified the Kyoto Protocol until then, due to concerns over a loss of competitiveness with the US, which also rejects the treaty. In December 2016, Australia became a party to the Paris Agreement, an international agreement which binds member countries to address climate change, and started submitting emissions reduction commitments (NDCs).
Renewable energy targets A key policy encouraging the development of renewable energy in Australia are the mandatory renewable energy targets (MRET) set by both Commonwealth and state governments. An Expanded Renewable Energy Target was passed with broad support by the Australian Parliament on 20 August 2009, to ensure that renewable energy achieves a 20% share of electricity supply in Australia by 2020. To ensure this the Federal Government committed to increasing the 2020 MRET from 9,500 gigawatt-hours to 45,000 gigawatt-hours. The scheme was scheduled to continue until 2030. This target has since been revised with the Gillard government introducing in January 2011 an expanded target of 45,000 GWh of additional renewable energy between 2001 and 2020. The MRET was split in 2012 into a small-scale renewable energy scheme (SRES) and large-scale renewable energy target (LRET) components to ensure that adequate incentive exists for large scale grid connected renewable energy. A number of states have also implemented their own renewable energy targets independent of the Commonwealth. For example, the Victorian Renewable Energy Target Scheme (VRET) mandated an additional 5% of Victoria's "load for renewable generation", although this has since been replaced by the new Australian Government LRET and SRES targets. South Australia achieved its target of 20% of renewable supply by 2014 three years ahead of schedule (i.e. in 2011) and has subsequently established a new target of 33% to be achieved by 2020. Australia's climate goal includes reducing emissions by 43% by 2030, aiming for 82% of its electricity to come from renewable sources, aligning with the Australian Energy Market Operator's (AEMO) forecast of 83% renewables in the National Electricity Market by the same year. This effort is supported by individual targets and initiatives from states and territories, and the National Energy Transformation Partnership, established in August 2022.
Government bodies and mechanisms
Australian Renewable Energy Agency (ARENA)
ARENA was established by the Australian Government on 1 July 2012. The purpose of ARENA is to improve the competitiveness of renewable energy technologies and increase the supply of renewable energy through innovation that benefits Australian consumers and businesses. Between 2012 and January 2021, ARENA supported 566 projects with A$1.63 billion in grant funding.
Carbon pricing
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