Australia’s Utility Solar Boom Has Already Peaked, Report Says
(Bloomberg) -- Australia’s booming utility-scale solar industry may have already peaked, risking the country’s lofty climate goals.
Just 1.4 gigawatts of utility-scale solar will be commissioned in 2025 — down 28% from last year and around 40% below the 2023 peak, according to new BloombergNEF analysis.
Australia needs to accelerate its energy transition or risk missing a 2030 goal to double renewables as it phases out aging coal plants.
Installations are projected to average 1.5 gigawatts annually over the next five years, before sliding to about 736 megawatts between 2031 and 2035, BNEF found.
“Australia’s utility-scale solar industry is facing strong headwinds and is gradually becoming a victim of its own success,” said BNEF analyst Tushna Mehta, who wrote the report.
Australia’s grid has struggled to keep pace with the energy transition, with slow approvals and local opposition holding up new projects, Mehta said.
At the same time, the boom in renewables — especially rooftop solar — is intensifying world-leading market volatility, frequently pushing prices to zero or below and making projects less profitable, she said.
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