Australia Could Add More Than 60 GW PV By 2030

• GlobalData's new report on Australian power market forecasts the country to reach a total installed PV capacity of over 80 GW in 2030
• It is mainly driven by frequent renewable energy auctions and FITs provided to projects
• Annual rooftop solar additions are at a GW scale thanks to favorable regulatory environment
• In comparison, thermal power as well as hydropower's share in the total electricity mix by 2030 is likely to come down

Frequent renewable energy auctions and offering of feed-in-tariffs (FIT) is driving the dropped off solar PV installations in Australia, according to global data and analytics company GlobalData that sees the country increasing its aggregate PV capacity to 80.22 GW in 2030, accounting for 47.56% of the country's total power capacity.

It would increase the total capacity from 17.99 GW at the end of 2020 that represented 21.7% of total power generation capacity of Australia. Rooftop solar remains a bright spot for Australian market thanks mainly to favorable regulatory environment that drives its growth. In 2020, Australia grid connected 18% more rooftop solar capacity with 2.6 GW having come online, compared to the previous year, according to the analysts.

GlobalData believes adoption of rooftop solar is helping Australians avoid high electricity retail prices and gives them energy security.

In its report titled Australia Power Market Outlook to 2030, Update 2021—Market Trends, Regulations, and Competitive Landscape, GlobalData sees share of thermal power capacity in the national mix declining to 27.8% in 2030 after accounting for 58.6% in 2020. Hydropower is also on the downhill in this market during the forecast period.

"Australia plans to compensate the decline in thermal and hydropower capacity with renewable power capacity growth. By 2030, the share of renewable power capacity is set to reach 69.9%, driven mostly by solar PV installations," said GlobalData's Power Analyst Aditya Sharma. "In addition to the federal initiatives, all 8 provinces offer their own schemes supporting the growth of solar PV. For instance, in Australian Capital Territory, in addition to solar PV auctions, the provincial government also offers interest-free loans for rooftop solar."

Australia is also betting big on renewable hydrogen with several projects having been announced in the recent past, which will further give an impetus to the growth of technologies as solar PV and wind energy. Recently the Australian Renewable Energy Agency (ARENA) approved $103.3 million funding for 3 commercial scale renewable hydrogen projects to establish 30 MW electrolyzer capacity in the country (see 3 Green Hydrogen Projects Get AUD 103.3 Million From ARENA).

The report can be purchased from GlobalData's website with prices starting from $2,500.