Renewable energy projects predicted to spark $20 billion construction boom – pv magazine Australia

May 24, 2024 Ew Foley

Renewable energy will be the biggest contributor to growth in Australia’s construction sector over the next three years, with annual business expected to reach A$20 billion ($13.3 billion), according to a new report from Sydney-based industry forecasting firm Macromonitor. in fiscal year 2026.

Renewable energy construction prospects – Australia the report provides detailed forecasts of renewable energy construction spending in Australia, covering all major types of renewable energy sources, including solar and battery power, hydro and biomass.

Notes that renewable energy construction has already grown from $4 billion in 2021 to approximately $10 billion in 2023, with peak renewable energy production projected to reach $17 billion in 2026-2027 , or $20 billion if directly related transmission projects are included.

Macromonitor economist and report author Abdul Hannan said the additional $10 billion in actual growth in renewables work over the next three years would far outstrip any other construction segment in Australia.

“In addition to building power generation systems over the next five years, which will be a key period for Australia’s energy transition, massive investment in energy storage and transmission systems is also expected,” he said.

New South Wales (NSW) accounted for half of renewable energy construction work in financial year 2022 and will account for a third of all renewable energy construction work across the country over the next four years, paving the way for growth of 5 .2 billion in fiscal year 2026 as additional renewables and energy storage are deployed to replace the estimated 8.3 GW of coal plants expected to exit the system.

Solar construction spending is expected to peak in fiscal year 2025 at $2.7 billion, followed by a slight decline to average approximately $2.5 billion per year over the five years to fiscal 2032, as anticipated developments such as the $5.6 billion Australian Renewable Energy Center in Western Australia.

Construction spending on battery storage projects is projected to increase sharply in FY 2032, with total work doubling from the previous year to $4.5 billion, before declining to $2.2 billion annually by FY 2026.

While Macromonitor forecasts an overall moderate decline in renewable construction spending after 2026, this activity will remain at historically high levels through 2030, supported by both domestic and export projects.

While the economics of transitioning to renewable energy are promising, the demand for labor to complete the necessary projects is also expected to increase rapidly.

A report commissioned by the federal government shows Australia needs 200,000 more people in clean economy jobs by 2030 or it risks falling short of its renewable energy targets. The Jobs and Skills Report also estimates that at least two million new jobs are needed to meet the government’s net zero target by 2050.

In last week’s budget, Australia’s federal government committed $91 million over five years to help skill Australia’s clean energy workforce.

The investments include $50 million to expand clean energy training capacity across wind, solar, pumped hydro, grid battery energy storage, grids and hydrogen, as well as key electrical and construction industries, as well as $30 million for accelerating teacher development to train the workforce.

The government has adjusted the eligibility settings for the New Energy Apprenticeship Program so that more apprentices can receive up to $10,000 to help them overcome cost of living pressures.

The types of internships eligible for the $10,000 aid package will include hydroelectric design and construction, solar and battery installations, and electric vehicle maintenance.