Australia’s federal budget ‘missed opportunity’ to prioritise renewable energy

May 11, 2021
Facebook
Twitter
LinkedIn
Reddit
Email
A rooftop solar system in Sydney, Australia. Image: Photon Energy.

Australia’s Clean Energy Council has slammed the Australian government’s latest federal budget as “disappointing” for not placing more onus on expanding the country’s renewable energy capacity.

Treasurer Josh Frydenberg placed big spending commitments on social policies such as driving down unemployment, aged care, childcare, supporting mental health and disability services, women’s economic security and domestic violence support on Tuesday night (11 May).

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

While more than UA$10 billion is to be spent on major infrastructure projects focusing on road, rail and freight upgrades, the government has been criticised for not doing more to stimulate renewables investment.

Kane Thornton, chief executive of the trade body the Clean Energy Council, said in a statement that the budget presented a “missed opportunity” to invest in improving Australia’s electricity grid to facilitate the expansion of renewable energy generation. He said that a clean recovery from the economic downturn caused by COVID-19 could bring in more than AU$50 billion of outside investment, resulting in more than 30GW of new energy capacity and around 50,000 new jobs as projects are developed.

“The lack of transmission investment is now one of the most critical challenges facing Australia’s energy industry,” Thornton said. “It’s disappointing that in a ‘nation-building’ infrastructure budget, upgrades that will enable the access and security of clean, low-cost power have not been prioritised.”

The announcement comes weeks after the federal government signed a AU$1.08 billion (US$840 million) energy and emissions reduction agreement with South Australia’s regional government, which includes AU$400 million in federal funding for “priority areas” such as hydrogen, carbon capture and storage, electric vehicles and “other emissions reduction projects” in South Australia, as well as up to AU$110 million in finance for solar thermal and storage projects.

Read Next

October 21, 2025
Australia's solar-plus-storage sector gained momentum with 725MW of solar PV approvals advancing across New South Wales and Queensland.
October 21, 2025
Luminous Robotics has successfully completed its first international deployment of AI-powered solar installation robots at Engie’s 250MW Goorambat East Solar Farm in Victoria, Australia.
October 15, 2025
The Australian government has approved the 141MW Forbes Solar Farm Project in New South Wales in just 19 days, marking one of the fastest environmental approvals on record in the country.
October 15, 2025
Australia has opened registrations for Capacity Investment Scheme (CIS) Tender 7, which targets 5GW of renewable energy generation capacity across the National Electricity Market (NEM).
October 10, 2025
Australia's renewable energy sector recorded its slowest month of the year for additions in September, with 5.8GW of new projects added to development pipelines, according to data from Rystad Energy.
October 9, 2025
The Australian government has announced the results of the fourth Capacity Investment Scheme (CIS) tender, with 6.6GW of renewables awarded long-term contracts.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK