By Abdullahi Lukman
The Australian government has announced a major expansion of its renewable energy investment scheme, aiming to accelerate clean energy deployment and stay on track to meet its 2030 climate targets.
Climate Change and Energy Minister Chris Bowen said on Tuesday that the government would increase its main climate policy—the Capacity Investment Scheme—by 25 percent, underwriting the construction of 40 gigawatts of large-scale solar, wind, and storage by 2030.
This capacity is nearly double that of the nation’s current coal-fired power fleet.
The expansion comes amid concerns that delays in grid approvals, supply chains, and community opposition have slowed renewable rollout.
Labor’s climate plan includes reaching 82 percent renewable electricity by 2030 and cutting emissions by 43 percent from 2005 levels.
Bowen noted that the cost of solar and batteries has fallen faster than expected—down 8 percent and 20 percent respectively over the past year—presenting an opportunity to accelerate the energy transition.
“We need new generation now,” he said, stressing that ageing coal plants are increasingly unreliable and costly.
The Capacity Investment Scheme uses competitive tenders, offering developers revenue certainty with no upfront subsidies.
If earnings fall short, the government fills the gap; if they exceed expectations, developers return a portion to the government. Fossil fuel projects are not eligible.
So far, six oversubscribed tender rounds have attracted $17 billion in private investment, delivering 6.4GW of new renewable capacity and 2GW of dispatchable storage.
The new target under the expanded scheme is 26GW of solar and wind and 14GW of storage.
The announcement comes ahead of Australia setting its 2035 emissions target, due by September.
UN climate chief Simon Stiell, visiting Canberra this week, called on Australia to be bold and aim high. Bowen said the government will wait for advice from the Climate Change Authority before setting the target.
“Targets are easier set than met,” he added.
