Australia invests $2.3bn into renewable energy projects
Australia's Clean Energy Finance Corporation invested a record $2.3 billion in renewable energy projects and grid infrastructure during the 2024-25 financial year, marking a 2.5-fold increase from the previous year as the country accelerates its transition from fossil fuels.
The largest single transaction involved $1.8 billion committed through the Rewiring the Nation Fund, including up to $1.4 billion for HumeLink and the New South Wales element of VNI-West transmission projects. This represents the CEFC's single largest transaction since its inception.
"Australia requires ongoing investment in renewables and long-duration storage, clean energy affordability for consumers and measures to cut emissions," said CEFC CEO Ian Learmonth. "Investment activity at this scale promises substantial economic and local employment benefits across Australia."
The investment push addresses critical challenges facing Australia's energy transition. Despite plans to shut all coal stations by 2038 and achieve 82% renewable generation by 2030, Wood Mackenzie projects the country is on track to reach only 58% renewable energy generation by decade's end.
Australia's heavy reliance on coal power generation makes it one of the world's highest polluting countries per capita. BloombergNEF analysis reveals Australia needs to invest approximately $39 billion annually between now and 2030, 2.6 times current levels, to remain on target for net zero by 2050.
During the financial year, the CEFC also deployed a record $1.9 billion in new capital across the economy. Since its establishment, the corporation has made lifetime commitments of $11.9 billion and helped drive $55.7 billion in total clean energy project commitments.
The record investment activity demonstrates the scale of Australia's clean energy challenge whilst highlighting the economic opportunities available in the transition to renewable power generation.
