Is Australia the next global hub for renewable energy?

In March 2025, the Government released its first National Renewable Energy Priority List (Priority List). Developed in collaboration with the federal and state governments, the Priority List includes projects that are:

• greater than 30MW
• in the pre-construction phase
• on-grid
• scheduled for completion by 31 December 2031
• key transmission projects that support the integration of renewables into the grid.

Projects on the Priority List could provide an additional 16 GW of generation and 6 GW of storage capacity nationwide.

While these projects are designed to accelerate Australia’s energy transition, the Government has reiterated that Priority List projects must meet all statutory requirements to ensure environmental and heritage standards are upheld. The 24 transmission projects and 32 generation and storage projects on the Priority List will benefit from coordinated support for regulatory planning and environmental approval processes. 

However, despite Government support, recent research by Princeton and the University of Queensland has raised concerns that Australia’s rollout of renewables is bound for conflict with environmental groups and landholders. With many Priority List projects overlapping with areas of environmental and cultural significance, analysts believe that at least two proposed Renewable Energy Zones have over 90% overlap with biodiversity exclusion areas and accordingly, open collaboration between energy developers, state and local governments, landowners, and interest groups will be important in progressing Australia’s energy transformation. Through this and the streamlining of approval processes, Australia is well placed to implement the Priority List projects and encourage further investment into renewables.

With the pace of renewable energy projects in Australia and current global investment uncertainty, especially in the USA, investment in Australian renewable projects is expected to increase.

Before Donald Trump’s second inauguration, the race for renewable energy investment between the USA and Australia remained highly competitive. The ‘Future Made in Australia’ legislation announced in the 2024-25 Budget was seen as a direct counter to former president Joe Biden’s Inflation Reduction Act (IRA).

Since taking office, President Trump has rolled back key components of the IRA, effectively banned offshore wind farms (at least initially) and withdrawn the USA from the Paris Agreement. President Trump’s ‘America First’ agenda has continued, with tariff policies compounding costs and augmenting uncertainty in US markets. 

In contrast, Anthony Albanese’s election victory in May 2025 may be considered, in part, a vote of confidence by Australians in the nation’s clean energy future.

With recent reports suggesting that Global Energy investment is set to rise to $3.3 trillion in 2025, and global capital looking at markets outside of the USA, there is a strategic opportunity for Australia to position itself as a stable and attractive destination for renewables investment.

Despite Australia’s push to attract more international capital into the renewable energy sector, Treasury’s Foreign Investment Review Board (FIRB) continues to pose a significant barrier for some foreign investors. 

Concerns have been raised that FIRB’s lengthy review timelines can deter potential investment from international markets, particularly in large-scale renewable energy projects and where those projects are often classified as critical infrastructure. The launch of the FIRB portal in May this year was a welcome development, aimed at streamlining Australia’s FIRB process into a more sophisticated, predictable and investor-friendly system. The reality remains that FIRB will continue to be an issue and remain relevant to offshore investors in Australian clean energy.

This article was written with assistance by Karun Dhaliwal, Law Graduate.