Renewables to account for 73.3% of Australia’s power generation by 2035 – Energy Global

Report on Australia’s Energy Transition and Alignment with Sustainable Development Goals

Australia is undergoing a significant energy transition, characterized by ambitious renewable energy targets and strong policy support. This report analyzes the current trajectory, key drivers, and challenges of this transition, with a specific focus on its alignment with the United Nations’ Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 13 (Climate Action).

Renewable Energy Projections and SDG 7

Forecasted Growth in Renewable Capacity and Generation

Analysis by GlobalData indicates a substantial shift towards renewable energy sources in Australia’s power market by 2035. This transition is foundational to achieving SDG 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all.

• Generation Share: Renewables are projected to constitute 73.3% of the nation’s total power generation by 2035.
• Capacity Mix: The share of renewables in the total capacity mix is expected to reach 77.8% by 2035.
• 2024 Comparison: This marks a significant increase from 2024, when renewables accounted for 31.6% of generation and 48% of installed capacity, while thermal power represented 63.4% of generation and 44% of capacity.

Policy Framework and Strategic Initiatives for Climate Action

Government Policies Driving the Transition

The Australian government has implemented a robust policy framework to facilitate the energy transition, directly contributing to SDG 13 (Climate Action) by promoting the reduction of greenhouse gas emissions.

• Renewable Energy Target (RET)
• Capacity Investment Scheme (CIS)
• Rewiring the Nation initiative
• State-level renewable energy targets

Initiatives Supporting Net-Zero Emissions

In pursuit of its net-zero emissions goal by 2050, Australia has launched several major initiatives. These programs are designed to accelerate investment in clean energy technologies, aligning with both SDG 7 and SDG 13.

• Solar Sunshot: Promotes investment in solar photovoltaic (PV) manufacturing and deployment.
• Hydrogen Headstart: Fosters the development of a green hydrogen industry.
• Critical Minerals Production Tax Credit: Encourages investment in the supply chain for battery storage and other clean technologies.

Infrastructure, Innovation, and Technology (SDG 9)

Leading Renewable Technologies

The transition is being led by advancements in key renewable technologies, supported by widespread adoption and strategic development that enhances industrial and infrastructural capacity, a core component of SDG 9.

• Solar PV: Remains the dominant technology, with projections indicating over 4.16 million installed systems by mid-2025 and continued growth in rooftop solar installations.
• Wind Power: Both onshore and offshore wind projects are expanding rapidly, particularly within designated Renewable Energy Zones (REZs) designed to streamline investment and grid diversification.

Grid Modernization and Resilient Infrastructure

Initiatives such as “Rewiring the Nation” and the “Capacity Investment Scheme” are central to upgrading Australia’s energy infrastructure. These efforts are critical for building the resilient infrastructure required by SDG 9, ensuring that new renewable projects can connect to the grid efficiently and provide reliable power.

Challenges to Achieving 2030 Targets

Identified Obstacles

Despite strong momentum, Australia faces several challenges in achieving its target of 82% renewable electricity by 2030. Addressing these issues is crucial for maintaining progress towards the SDGs.

1. Grid connection delays and complex permitting processes for large-scale projects.
2. Community resistance to the development of new transmission infrastructure.
3. Insufficient firming and storage capacity to manage the variability of solar and wind power.
4. Grid congestion and curtailment risks, particularly with rising rooftop solar generation.
5. Delays in the planned retirement of coal-fired power stations due to transmission constraints.

Conclusion and Path Forward

Australia’s power sector is in a critical phase of transition. While the 2030 renewable energy target is ambitious, sustained progress is achievable. The successful realization of this transition, and the corresponding achievement of SDGs 7, 9, and 13, will depend on several key factors:

• Continued alignment of federal and state policies.
• Accelerated delivery of essential grid infrastructure and transmission upgrades.
• Greater investment in firming technologies, such as battery storage and hydrogen, to ensure grid stability and reliability.

Analysis of SDGs in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on Australia’s energy transition directly addresses and connects to the following Sustainable Development Goals (SDGs):

• SDG 7: Affordable and Clean Energy: This is the central theme of the article. The entire text focuses on Australia’s shift from thermal power to renewable energy sources like solar and wind, aiming to increase the share of clean energy in its national grid.
• SDG 9: Industry, Innovation and Infrastructure: The article highlights the critical role of infrastructure in the energy transition. It discusses challenges and initiatives related to the electricity grid, such as “grid connection delays,” “new transmission infrastructure,” and the “Rewiring the Nation” program, which are all components of building resilient and sustainable infrastructure.
• SDG 13: Climate Action: The driving force behind the energy transition described in the article is the need to combat climate change. This is explicitly mentioned through Australia’s “ambitious net zero targets” and its goal to “achieve net-zero emissions by 2050.”

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, the following specific SDG targets can be identified:

1. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
   • Explanation: The article is fundamentally about achieving this target at a national level. It explicitly states Australia’s goal of reaching an “82% renewable electricity target by 2030” and forecasts that “renewables are forecast to account for 73.3% of the country’s total power generation by 2035.”
2. Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.
   • Explanation: The article describes a nationwide retrofitting of the power industry. It details the shift from thermal power, which represented “63.4% of generation” in 2024, to a system dominated by renewables. The discussion of “grid upgrades” and integrating solar and wind power represents the upgrading of infrastructure for greater adoption of clean technologies.
3. Target 13.2: Integrate climate change measures into national policies, strategies and planning.
   • Explanation: The article lists several national policies and strategies designed to integrate climate action into Australia’s planning. These include the “Renewable Energy Target (RET),” the “Capacity Investment Scheme (CIS),” the “Rewiring the Nation initiative,” and the overarching national commitment to “achieve net-zero emissions by 2050.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions and implies several indicators that can be used to measure progress:

• Indicator for Target 7.2 (Renewable energy share): The article provides direct quantitative indicators. It states that in 2024, renewables accounted for “31.6% of generation” and are forecast to reach “73.3% of the country’s total power generation by 2035.” The national target of “82% renewable electricity” is itself a key performance indicator.
• Indicator for Target 9.4 (Adoption of clean technologies): The article provides data on the changing capacity mix. It notes that renewables will “dominate Australia’s capacity mix, reaching 77.8% by 2035,” a significant increase from “48% of installed capacity” in 2024. The number of solar installations, with “more than 4.16 million PV systems installed… by mid-2025,” also serves as a concrete indicator of technology adoption.
• Indicator for Target 13.2 (Integration of climate policies): The existence and implementation of the policies mentioned are themselves indicators. The article names specific government programs like the “Solar Sunshot programme, Hydrogen Headstart, and the Critical Minerals Production Tax Credit” as evidence of national strategies being put into action to achieve the “net-zero emissions by 2050” goal.

4. Summary Table of SDGs, Targets, and Indicators

Source: energyglobal.com