Powering the world’s transition to net zero

Australia is set to become a renewable energy superpower. This is thanks to vast solar and wind resources, and an abundance of rare earth and other minerals. These resources make us an ideal destination for investors who want to export renewable energy.

We have enormous reserves of the minerals that the world needs to transition to net zero. These include the largest known reserves of zinc, nickel and tantalum. We also have the second largest reserves of lithium and cobalt, with abundant rare earth minerals.

With a vast coastline and immense open spaces, Australia has some of the best wind resources in the world and the second highest potential for solar power. The combination of huge wind and solar resources is helping us forge ahead in the development of reliable renewable energy.

Australia’s advanced resources industry is at the forefront of our endeavours to decarbonise the economy. It is helping us convert natural endowments into renewables success. Australia is already the largest per-capita producer of solar energy in the world. Per head, we rank seventh in the world for renewable energy patents.

Australia welcomes foreign investment in renewables. It will help us meet commitments to reduce carbon emissions and become a renewable energy exporter. Access to renewable resources – plus local ingenuity and a supportive policy environment – makes Australia an attractive destination for renewable energy investment.

Supporting - Global energy superpower 

A natural leader in clean energy

Australia is a leader in renewable energy. We have vast natural resources. Our cloudless skies and vast, empty plains make a perfect environment for generating solar power. Also, Australia’s strong offshore wind resources are positioned conveniently close to energy demand centres. These two factors make Australia an increasingly attractive investment destination for solar and wind power. Australia is taking action on climate change by legislating an ambitious emissions reduction target of 43% by 2030 and net zero by 2050. This provides investors with certainty on our transition to net zero.

australia's-renewable-energy-credentials
australia's-renewable-energy-credentials

Sources: 1. Reuters, 2022, World’s first hydrogen tanker to ship test cargo to Japan from Australia. 2. Geoscience Australia, 2022, Australian hydrogen projects dataset, September 2022. 3. The World Bank, 2023, Global photovoltaic power potential by country. 4. International Energy Agency,2023, levelised cost of electricity calculator. 5. Geoscience Australia, 2023, Australia’s solar energy resources and production. 6. US Office of Energy Efficiency and Renewable Energy, 2023, How much power is 1 gigawatt? 7. The World Bank, 2022, world bank open data. 8. Worldometer, 2022, Population by country. 9. U.S. Energy Information Administration, 2022, Electricity data. 10. Frontier Economics, 2020, Residential energy consumption benchmarks. 11. IRENA, 2022, Patents evolution. 12. Worldometer, 2022, Population by country. 13. Geoscience Australia, 2021, Australia’s identified mineral resources. 14. US Department of the Interior, 2022, Mineral Commodity. 15. EY, 2022, Renewable energy country attractiveness index. 16. Department of Climate Change, Energy, the Environment and Water, 2022, Government backs next-generation renewable technology; Austrade.

Australia’s power surge in wind and solar

Renewables deliver a fast-growing share of Australian energy production. They accounted for a record 29% of total electricity generation in 2021. The Australian Government aims to generate 82% of electricity from renewables by 2030. Given our natural resources, wind and solar are Australia’s main renewables generators, making us the world’s sixth largest producer of solar energy. Innovation in solar energy has attracted significant investment. For instance, Lightsource bp is developing two new solar projects that aim to deliver 2 GW of solar-generating capacity in Australia this decade. This is enough to power approximately 1.5 million homes.

 
australias-renewable-energy-generation-volumes-and-world-rankings

Note: 1. CAGR = compound annual growth rate.

Sources: U.S. Energy Information Administration, 2022, International energy statistics; Department of Climate Change, Energy, the Environment and Water, 2022, Government backs next-generation renewable technology; Australian Financial Review, 2022, Lightsource bp secures $540m funding for solar developments, December 2022; Austrade.

Local ingenuity and Australia’s clean energy revolution

Approximately 4,000 patents in wind-powered energy have been registered in Australia. And around 10,000 patents in solar technologies were registered in Australia from 2000 to 2021. Per size of population, this means Australia has one of the highest ratios of renewable energy patents in the world – on par with the US and Germany. This achievement reflects the strength of research and innovation in Australia’s renewable sector, and will help Australia build a global-scale renewables industry.

 
australias-renewable-energy-generation-volumes-and-world-rankings

Note: 1. Includes biofuels, fuel from waste, geothermal, heat pumps, hydropower, marine, PV-thermal hybrid, solar photovoltaic, solar thermal, and wind, as defined by IRENA.

Sources: The World Bank, 2022, Population; Worldometer, 2022 Population by country; IRENA, 2022, Patents evolution, accessed December 2022; Austrade.

A top destination for investment in renewables

Globally, Australia ranks sixth on the renewable energy attractiveness index, developed by EY. The index considers factors such as energy imperatives, policy stability, project delivery capabilities and the diversity of natural resource. Australia aims to become a major exporter of renewable energy by 2030. This strategic national goal creates significant potential for investment. Capacity is increasing in three principal sectors: solar, wind and green hydrogen.

australias-renewable-energy-generation-volumes-and-world-rankings
Sources: EY, 2022, Renewable energy country attractiveness index, accessed January 2023; Austrade.

 

Australia is a solar powerhouse

In terms of population size, Australia was the largest producer of solar electricity in 2021. We generated 1,091 kilowatt-hours (kWh) of solar power per head. Australia is also a leader in absolute terms. In 2021, we generated 28 billion kWh of solar power, making us the world’s sixth largest producer. This means that we generate nearly twice as much solar power as France, Mexico, the UK, or the Netherlands. Major projects are attracting investment from around the world. The 26 GW Australian Renewable Energy Hub (AREH) in the Pilbara region of Western Australia is a hybrid wind and solar project designed to produce green hydrogen for export. The AREH site is expected to extend across 6,500 km². This is roughly 4 times the size of London.

electricity-generated-by-solar-energy-selected-regions

Note: 1. The number in brackets indicates the economy’s ranking across 177 economies.
Sources: The World Bank, 2022, The World Bank open data; U.S. Energy Information Administration, 2022, Electricity data; Worldometer, 2022, Population by country; all accessed on 9 January 2023, Austrade.

Huge reserves of minerals to power the transition to net zero

Australia is a secure and reliable source of minerals that are in global demand as multiple industries transition to net zero. With vast reserves, Australian mining can continue to supply these minerals well into the future. Demand for lithium is particularly strong because of rising demand for the lithium-ion batteries used in electric vehicles (EVs). Australia is already a leading global producer of lithium. Investment is set to surge as customers look for secure supplies to feed transnational EV battery supply chains. Australia also has the world’s largest reserves of zinc, nickel and tantalum.

Australia's minerals, 2021

Global ranking for production and reserves

Minerals for clean technologies Production Reserves
Lithium  1 2 
Zinc 2  1 
Graphite na  8 
Cobalt 3  2 
Manganese Ore 3  4 
Rare earths 4  6 
Nickel 5  1 
Tantalum 5  1 
Copper 6  2 
Aluminium 6  na 
Silicon 16  na 
Molybdenum na  7 

 

australias-minerals-2021
Sources: Geoscience Australia, 2021, Australia’s identified mineral resources; US Department of the Interior, 2022, Mineral commodity; Austrade.

 

A leader in industrial-scale hydrogen

Australia became a pioneer in hydrogen when we sent the world’s first shipment of liquified hydrogen to Japan. We remain at the forefront of hydrogen production with over 100 hydrogen projects in the pipeline. The International Energy Agency says that Europe and Australia are leading the way in hydrogen production projects. This means Australia will have the capacity to export hydrogen to high-demand centres in Asia, including Japan, Singapore, India and Korea.

key-hydrogen-projects-in-australia
key-hydrogen-projects-in-australia

Note: 1. The number in brackets indicate the project’s potential capacity in gigagrams per year.
Sources: Reuters, 2022, World’s first hydrogen tanker to ship test cargo to Japan from Australia; International Energy Agency, 2022, Global hydrogen review 2022; CSIRO, 2023, Hydrogen map; Geoscience Australia, 2022, Australian hydrogen projects dataset, September 2022; Government of South Australia, 2023, Port Bonython export hub; Goyder renewables zone, 2023, Renewable energy for South Australia; Austrade.

The world’s second highest potential for solar power

When it comes to solar power, we have nature on our side. Australia’s cloudless skies plus vast empty plains make us the country with the second greatest potential for solar power1 in the world. In June 2022, large-scale solar farms operating in Australia had the capacity to generate over 5.8 GW of electricity. This is roughly equivalent to 18 million solar photovoltaic (PV) panels. More than 3 million (around 30%) of Australian households now have rooftop solar PV power.

Note: 1. Measured by the theoretical potential solar photovoltaic power.

Sources: The World Bank, 2023, Global photovoltaic power potential by country; Geoscience Australia, 2023, Australia’s solar energy resources and production; US Office of Energy Efficiency and Renewable Energy, 2023, How much power is 1 gigawatt?; Austrade.

A low-cost country for solar power generation

Australia is one of the most cost-efficient investment destinations for solar power generation. This is thanks to a combination of ideal geography and a supportive legal and economic environment. According to the International Energy Agency, Australia has the third lowest cost for generating solar power among major solar-power producers.

cost-of-solar-power-generation-by-region-2020

Note: 1. The ranking is based on the average levelised cost of energy (LCOE) from a solar photovoltaic (PV) utility-scale plant. The LCOE measures the cost of producing a unit of energy, taking into account the cost of the PV technology, capital expenditure, operation costs, and the discount rate over the typical PV plant lifetime.
Sources: International Energy Agency, 2023, Levelised cost of electricity calculator; Austrade.