How Australia’s clean energy boom is driven by its states and territories

At a glance

“Race to the top: Australia’s clean energy momentum”, by Alex Engel-Mallon, Ben McLeod, Jennifer Rayner and Danielle Veldre. Climate Council, Sept. 11, 2024. 

This report highlights Australia’s accelerating shift towards clean energy, driven by states and territories. Australia now leads the world in per capita renewable energy deployment, with over three million rooftop solar installations. It is projected to reach 100 per cent renewable electricity by 2040, although some states, like Western Australia, lag behind due to ongoing fossil fuel reliance. Australia has the potential to become a global renewable energy superpower, if the government sustains and accelerates the transition.

Key findings

• Growing share of the grid: Australia has doubled its share of renewable electricity in the national grid in less than six years, reaching 40 per cent in 2023.
• Rooftop solar: Over 50 per cent of Queensland homes have rooftop solar, making it a national leader in solar adoption.
• Standout: Tasmania already generates 100 per cent of its electricity from renewables and plans to produce 200 per cent to export excess energy.
• Phasing out gas: Victoria is phasing out gas in new homes, shifting towards all-electric households to cut emissions and lower energy costs.
• Further behind: Western Australia relies on natural gas for 57 per cent of its electricity, the highest in Australia, hindering emissions reductions.
• Job creation: Renewable energy projects are creating jobs, with Queensland’s Energy and Jobs Plan estimated to generate 100,000 jobs by 2040.

Take a look

Bigger picture

This report shows how rapid progress in clean energy adoption, including at a subnational level, can reshape entire economies through creating thousands of jobs and lowering energy costs. By highlighting developments such as Queensland’s explosion in rooftop solar installation and Tasmania’s renewable energy exports, the Climate Council shows how regional actions can support national and global climate goals. This can be a blueprint for others looking to speed up their own energy transitions.

The report identifies key trends such as the need for faster approvals for renewable projects, greater investment in energy storage and stronger commitments to phase out coal and gas. Australia’s clean energy experience shows that countries must take urgent action to meet climate goals while ensuring that the transition is equitable and economically beneficial for all. These trends and next steps provide valuable lessons for stakeholders aiming to drive the global energy transition forward.

Challenges and opportunities

Key barriers to energy transition progress in Australia include:

• Ongoing reliance on gas and coal in regions like Western Australia and the Northern Territory is hindering emissions reduction efforts and undermining clean energy progress.
• Slow project approval processes in states like New South Wales are delaying renewable energy rollout by up to seven years, driving up costs for developers.
• Inadequate energy storage capacity, particularly in states with high solar adoption like Queensland, limits the ability to store and use renewable energy efficiently.
• Limited infrastructure for electric vehicles (EVs) in some regions, such as Western Australia, is slowing the transition to cleaner transport.
• Fossil fuel project approvals, such as gas developments in the Beetaloo Basin, continue to receive support, complicating long-term emission reduction goals.
• Financing gaps for clean energy projects in remote and regional areas remain a challenge, with insufficient incentives for private sector investment in some areas.

To address these challenges, the report recommends:

• Streamlining planning and approval processes for renewable energy projects in states like New South Wales to accelerate clean energy infrastructure development.
• Expanding battery storage and grid-scale energy storage solutions to ensure renewable energy can be utilized consistently across Australia, particularly in solar-heavy regions.
• Increasing investment in EV charging infrastructure, particularly in under-served regions like Western Australia, to support the transition to cleaner transport.
• Increasing collaboration between states and the federal government on renewable energy targets and emissions reductions to ensure national consistency and shared best practices.
• Promoting community-driven renewable energy projects, like solar banks and local energy hubs, to expand access to clean energy for renters and low-income households.
• Phasing out fossil fuel subsidies and reallocating resources to support emerging renewable energy industries, such as green hydrogen and offshore wind development.
• Encouraging public-private partnerships to finance and accelerate the development of large-scale clean energy projects in regional and remote areas.

In their own words

Tasmania has achieved 100 per cent renewable electricity and is now working to produce 200 per cent to export the excess to the mainland.

“Race to the top: Australia’s clean energy momentum”, Climate Council, Sept. 11, 2024. 

Final thoughts

This Climate Council report shows how some states and territories have been leading the charge in Australia’s rapid progress in renewable energy adoption. Its findings are critical to the global energy transition, as they demonstrate that large-scale clean energy initiatives can significantly reduce emissions while creating jobs and lowering energy costs. 

However, the report could benefit from more analysis on overcoming barriers like slow project approvals and fossil fuel reliance in regions like Western Australia. Addressing these challenges, along with a stronger focus on energy storage and community-led initiatives, would further accelerate global efforts toward achieving net-zero emissions.

Download the full report originally published by the Climate Council on Sept. 11, 2024.