A breakthrough year for renewables but action needed to address stalling investment
Our annual snapshot of the clean energy transition paints a picture of both enormous momentum as renewables grow to account for 43% of Australia’s electricity, but real urgency as investment falls to one of its lowest levels in a decade.
Discover what needs to happen now.
Renewable energy generated 43% of Australia's electricity, up from 39% in 2024. Batteries took off in a big way with a 260% increase in home battery sales and a 233% rise in large-scale battery capacity, helping Australia to become the third-largest utility-scale battery market in the world.
There were 90 unscheduled outages in the 2025/26 summer, contributing to 25% of coal capacity being offline on average. More renewable energy is needed to replace Australia’s retiring coal fleet.
Just 2.3 GW of new renewable energy generation projects reached financial close in 2025, one of the lowest levels in a decade.
What’s needed now to unleash the clean energy investment Australia needs
Clean energy is delivering jobs, community benefits and investment across regional Australia and has the potential to power new markets from data centres to green iron ore. At a time when the need and opportunity for clean energy are clear, we need to work together – industry, governments and communities - to unlock those opportunities.
At the Clean Energy Council, we are focused on driving reforms and unlocking investment:
- Strengthening economic signals to give investors the certainty they need to commit capital at scale for all renewable technologies. This includes improving the Capacity Investment Scheme tenders, delivering effective and investible markets and securing commitments to transmission connection timelines.
- Cutting excess red tape: Resolving approval requirements and duplication across jurisdictions and reducing project approval times and costs, including through reforms to the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).
- Building community trust: Raising social performance standards across the industry, demonstrating the economic value of development to regional communities and elevating the facts to counter the misinformation that is delaying projects.
- Better integrating consumer resources: Strengthening network integration of rooftop solar and batteries, delivering greater value for household energy asset owners and reducing regulatory complexity for industry.
“The clean energy transition is not a future ambition. It is filling a gap that is opening now. The pace of the build-out must keep pace with coal’s decline.”
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