Australia Expands Renewable Energy Scheme by 25% to Accelerate 2030 Climate Goals

Australia’s federal government has announced a major expansion of its key renewable energy program, increasing its scale by 25% in a bid to fast-track clean energy adoption and meet the country’s 2030 emissions reduction targets. The initiative aims to support the construction of 40 gigawatts (GW) of large-scale solar, wind, and energy storage infrastructure by the end of the decade—almost double the current capacity of Australia’s coal power fleet.
The move comes as concerns grow over the slow pace of clean energy rollout, attributed to delays in grid connections, planning approvals, and community resistance. The government is targeting 82% of grid electricity from renewables by 2030, up from around 42% currently. This is essential for achieving the legislated emissions cut of 43% from 2005 levels by 2030.
Energy Minister Chris Bowen emphasized the urgency of replacing ageing, unreliable coal-fired power with clean alternatives, citing recent cost drops in solar and battery technology—8% and 20% respectively over the past year. He announced the addition of 5GW of dispatchable storage (like batteries) and 3GW of new wind and solar capacity to the government’s underwriting scheme.
The expanded Capacity Investment Scheme now aims to underwrite 26GW of clean generation and 14GW of dispatchable storage, with developers participating through competitive tenders. These contracts offer financial certainty by setting revenue floors and ceilings without directly subsidizing fossil fuels.
Despite criticism from some quarters over the effectiveness of current policies, the government insists the expansion will help secure faster investment. Already, six tender rounds have attracted $17 billion in private investment, resulting in commitments for 6.4GW of clean generation and 2GW of dispatchable capacity.
Looking ahead, the government is preparing to set a 2035 emissions target by September, with climate advocates urging ambitious goals of up to 75% reductions or net zero by that year. The final target will be based on expert advice and national interest, according to the energy minister.