Since 2020, Australia has witnessed a significant acceleration in renewable energy investment, driven by ambitious state and federal targets, declining technology costs, and large energy users backing the need to decarbonise the economy. Organisations across sectors, from major energy companies and independent developers to institutional investors and individual households, have invested billions into utility-scale solar and wind farms, battery storage, and DERs, starting to reshape the nation’s energy landscape. The nation is essentially half-pregnant.
The first trimester
Okay, we’re technically halfway through, but it’s probably more like a third. 2020 to mid-2025 saw a substantial uptick in the number and scale of renewable energy projects reaching final investment decision and commissioning. 5.2 gigawatts (GW) of renewable energy capacity was added in 2024 (Clean Energy Council, 2025), with a 500% increase in investment commitments to large-scale renewable energy generation – $1.5b in 2023 to ~$9b in 2024. Critical if Australia is to get anywhere close to 82% renewables by 2030.
Key investment trends and drivers
- 9.9 GW committed for large-scale renewables: while new generation capacity may have dipped in 2024 vs 2023, 59 large-scale renewable projects were under construction as of December 2024, with a combined capacity of 9.9 GW, surpassing the 7.5 GW of 2023. AEMOs 2024 Integrated System Plan indicated 6 GW in variable renewable energy capacity is needed to be added every year until 2030 to replace coal.
- Rooftop solar cracks 4M mark: There are now over 4 million rooftop solar installations on Australian homes and businesses. As of March 31, 2025, Australia’s total combined solar PV capacity (including both rooftop and large-scale) was over 40.6 GW. In 2024, approximately 3.2 GW of new rooftop solar was added, bringing the installed capacity of rooftop PV to over 25 GW. In the same year, around 1.3 GW of large-scale solar was added to the grid.
- Battery storage boom: Battery Energy Storage Systems (BESS), have emerged as a critical component of Australia’s energy transition. At the close of 2024, 8.7 GW / 23.3GWh of large-scale battery capacity was under construction. While investment dollars was down for BESS vs 2023 ($3.7b vs $6.9b), 4 GW / 11.3 GWh has been committed across 24 battery storage projects.
- Billions more committed: The Clean Energy Finance Corporation (CEFC) has made $17.7 billion in commitments to clean energy projects, leveraging over $71.5 billion in total transaction value.
- Transmission infrastructure: Recognising the need to connect new renewable energy zones to the grid, significant investments have been made in transmission projects like HumeLink and EnergyConnect in NSW, and CopperString in Queensland, essential for the next iteration of the AEMO ISP.
Who has committed?
- Major Energy Companies: Traditional energy players like Origin Energy, AGL, and EnergyAustralia are transitioning their portfolios, investing in large-scale solar, wind, and battery storage projects.
- Independent Power Producers and Developers: Companies like Neoen Australia, ACCIONA Energia, Iberdrola Australia, and Squadron Energy are prolific developers of large-scale renewable projects.
- Institutional Investors and Super Funds: Increasingly, superannuation funds and large institutional investors, both domestic and international, are allocating significant capital to Australian renewable infrastructure, viewing it as a stable, long-term investment with attractive returns and strong ESG credentials.
- Government-Backed Entities: The CEFC and the Australian Renewable Energy Agency continue to be cornerstone investors, providing concessional finance and grants that unlock private sector investment.
- State Governments: Individual state governments are also making substantial investments and creating frameworks for renewable energy zones and large-scale projects. Victoria has fast-tracked solar/battery projects as part of a $4b+ pipeline while reviving the SEC. West Australia, Tasmania and the Northern Territory governments have all committed to 50%+ renewables by 2030, backed by hydrogen and solar initiatives. NSW investing further in REZs to help hit net zero by 2050. ACT is already at 100% renewable electricity since 2020. While the Crisafulli Queensland Government has repealed legislated goals for renewable targets and cancelled numerous renewable projects, the Queensland Productivity Commission has been tasked to review viability of emission reduction targets and offer a broader energy policy, with a roadmap due at the end of the year.
What does it mean for data?
As Australia’s energy transition accelerates, the role of data continues to fundamentally shift. No longer confined to retrospective reporting or compliance obligations, data is now a strategic input into operational, financial, and policy decision-making. The energy market is fundamentally changing, including its structure, participants, and how decisions are made. And the data that underpins this is evolving with it.
Energy market participants are grappling with the volatility introduced by variable renewables, the complexity of managing battery energy storage systems (BESS), and the rapid pace of regulatory change. These shifts are challenging even the most experienced industry veterans. The traditional “price and cap” game is being replaced by more complex trading dynamics, synthetic and physical hedges and new instruments still in development. The ability to model uncertainty, simulate market conditions, and evaluate portfolio strategies as close to real time as possible is core to profitability.
To be compelling in this new context, data must be:
- Timely: Traditional lagging indicators are no longer sufficient in a market where supply, demand, and price signals change rapidly. Near real-time data is essential for dispatch optimisation, scenario analysis, and operational responsiveness.
- Contextually relevant: With the growing diversity of market actors, ranging from large institutional investors and independent developers to policymakers and households, data must be interpretable across a wide spectrum of use cases. This requires not just technical accuracy, but clear framing tailored to stakeholder needs.
- Credible and Trustworthy: As reliance grows on forecasting, machine learning, and probabilistic modelling, so does the need for transparency. Assumptions must be documented, methodologies explainable, and outputs repeatable as well as auditable. Without trust in the data lifecycle, the value of insight erodes.
As highlighted at the recent Databricks Energy and Utilities Forum, data investment must allow energy market participants to react to market dynamics whilst redesigning core business plans, and whilst maintaining compliance and accountability. All within an ecosystem that is still defining its new normal.