Green goal shattered as Bowen faces COP heat

By the Editorial Team · Wednesday, September 16, 2026

Australia is expected to generate about 53 percent of its electricity from renewables by 2030, falling short of its national target due to delays in transitioning projects from proposal to construction and a lack of long-term power purchase agreements. This slow progress, despite government support programs, raises concerns over energy supply stability as coal plants retire, making accelerated project development critical to meeting clean energy goals.

Australia is projected to generate approximately 53 percent of its electricity from renewable sources by 2030, according to recent analysis of projects underway as of June 30. This falls short of the country’s renewable energy target for the end of the decade, despite a sufficient number of proposed renewable and battery storage projects that could theoretically meet the goal if completed on schedule.

The shortfall is attributed to delays in moving projects from proposal to construction, with many developers struggling to secure long-term power purchase agreements (PPAs) with electricity buyers. Analysis conducted by the Institute for Energy Economics and Financial Analysis (IEEFA) and Green Energy Markets highlights that, nationally, fewer than 10 percent of the required new wind and solar capacity is currently under construction in several states.

Although the federal government and New South Wales (NSW) have introduced capacity investment schemes intended to underwrite large renewable projects, progress toward construction has been slower than anticipated. While underwriting agreements have been awarded for approximately 25 gigawatts (GW) of wind and solar from these programs, only about 2.8 GW of projects have reached the construction phase.

The lag in project development raises concerns about future energy supply, particularly as major coal-fired power stations such as Eraring in NSW and Yallourn in Victoria plan to retire. This transition places additional pressure on both the federal and state governments to accelerate the approval and construction of clean energy facilities to avoid potential supply shortfalls.

Tristan Edis, director of Green Energy Markets, said the lack of long-term contracts is a significant obstacle. “Only a small share of fully approved projects have secured contracts,” he noted. Edis emphasized that without increased uptake of PPAs from large energy consumers, many renewable projects that have already received approval may remain dormant.

The analysis suggests that while a backlog of potential projects could help push the renewable share higher if they begin construction soon, the effectiveness of government underwriting mechanisms and market dynamics in securing firm energy purchase agreements will be decisive in meeting Australia’s 2030 renewable energy targets.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.