The level of investment commitments in large-scale renewable energy projects has fallen by more than 50% according to analysis by the Clean Energy Council (CEC). It also reveals a fall from 51 projects worth $10.7 billion in 2018 down to 28 projects worth $4.5 billion in 2019.

It should be noted that a strong flow of projects that were committed in 2017 and 2018 are now coming online, the pipeline of new projects commencing construction has dropped significantly after the stalling of commitments in 2019.

“A continued slow-down in new investment will put greater pressure on reliability and power prices as Australia’s old coal-fired power stations continue to close,” CEC chief executive Kane Thronton says.

“New investment is critical to replacing these coal-fired power stations and delivering on Australia’s emission reduction targets.”

Kane believes that mounting regulatory risks, under investment in transmission and policy uncertainty has contributed to the falling investments. Investors see increased risks and as a result, have lowered confidence.

This reduced investment confidence was reflected in the Clean Energy Council’s recent Clean Energy Outlook Index which revealed a clear fall in investor confidence in the sector.

The level of investment commitments in large-scale renewable energy projects has fallen by more than 50% according to analysis by the Clean Energy Council (CEC). It also reveals a fall from 51 projects worth $10.7 billion in 2018 down to 28 projects worth $4.5 billion in 2019.

Image courtesy of the Clean Energy Council

It should be noted that a strong flow of projects that were committed in 2017 and 2018 are now coming online, the pipeline of new projects commencing construction has dropped significantly after the stalling of commitments in 2019.

“A continued slow-down in new investment will put greater pressure on reliability and power prices as Australia’s old coal-fired power stations continue to close,” CEC chief executive Kane Thronton says.

“New investment is critical to replacing these coal-fired power stations and delivering on Australia’s emission reduction targets.”

Kane believes that mounting regulatory risks, under investment in transmission and policy uncertainty has contributed to the falling investments. Investors see increased risks and as a result, have lowered confidence.

This reduced investment confidence was reflected in the Clean Energy Council’s recent Clean Energy Outlook Index which revealed a clear fall in investor confidence in the sector.