The renewables bottom line: How Australia’s clean energy transition is reshaping the economy

In Australia, governments and the business community alike are working towards a clean energy future where the generation of energy is decarbonised. So in 2025, how are we going with that? Just how far along the trajectory to 82% renewables by 2030 have we travelled? Here we share the perspectives and insight of Clean Energy Finance Corporation (CEFC) Executive Director, Bobby Vidakovic, looking at the projects, the process and the progress made so far in “Rewiring the Nation”.

‍

Yesterday’s opportunity was coal – today’s is decarbonisation

‍

Australia’s energy landscape is going through a seismic shift. Yesterday’s opportunities in coal energy are gradually being transcended, and the spotlight is beginning to shine squarely on decarbonisation. The task ahead presents both challenges and unprecedented opportunities for the Australian economy.

‍

Australia's energy transition is already well underway. Coal, which once powered much of the country’s economy, is being phased out, making room for cleaner, renewable energy sources. Decarbonisation is no longer just a buzzword; it’s a critical pathway to a  sustainable future.  

‍

This shift involves more than just retiring outdated power plants. It requires collaboration across governments, private sectors, and communities to make renewable energy the norm. For Australia, the stakes are high, but so are the rewards.  

‍

A new generation of energy, jobs and skills

‍

Many entrepreneurs and families of the last few decades saw the opportunity of the booming fossil fuel industry and flooded mining towns to make their fortunes. Today, that emerging gold mine equivalent is decarbonisation, with the energy transition poised to create thousands of jobs in new industries, demanding diverse skill sets from construction and engineering to data analysis and maintenance. Industries are pivoting rapidly to attract and train workers who will build the infrastructure that powers tomorrow.  

‍

This isn’t just about environmental responsibility; it’s an economic revolution, unparalleled in modern Australian history. The companies and governments that act now to prepare their workforce will be at the forefront of this transformation.

‍

“It is now well accepted that Australia can expect as much as 46 per cent of our coal generation to exit the energy system by 2030, and 100 per cent by 2038. By accelerating progress on important transmission investments such as the Humelink and Central-West Orana REZ, we are unlocking unprecedented scale zero emissions energy at our disposal, whether in the form of large-scale solar, wind and energy storage, or smaller-scale rooftop solar and batteries. These are game-changing investments that will help ensure Australia can draw on our abundant low cost clean energy to power our net zero economy of the future.” - CEFC Executive Director, Bobby Vidakovic.

‍

What is decarbonisation and what does it take?

‍

At its core, decarbonisation is the process of reducing greenhouse gas emissions, particularly carbon dioxide, from the economy. For Australia, this means shifting from fossil fuel-based energy systems to renewable sources.

‍

Steps to decarbonising the Australian economy

‍

Decarbonisation is an intricate process requiring dedication, strategy, and significant investment. These are some of the core transitional steps that need to be undertaken for the decarbonised future to transpire:

‍

• Energy transition: Replacing coal-fired energy with renewable solutions like wind, solar, and hydro.
• Adopting clean technologies: Leveraging innovations like green hydrogen for fuel and advanced energy storage systems.
• Electricity infrastructure: Rewiring the nation to upgrade and expand the grid to distribute renewable energy effectively.
• Industry-wide policies: Implementing mandates for energy efficiency, supported by government subsidies and tax incentives.
  ‍

Government funds and capital allocations  

‍

Australia is fortunate to have a specialist investor supporting decarbonisation. Since 2012, the Australian Government capital allocation to the CEFC has more than tripled.  

‍

The CEFC is powered by more than $32 billion in Australian Government funds, and is driving investment across renewable energy, energy efficiency, and low-emissions technology to deliver a positive return for taxpayers.  

‍

Government allocation to the CEFC for decarbonisation since 2012

2012 - $10 billion

2025 - $32.5 billion

How the CEFC is investing to support Australia-wide decarbonisation

‍

So, where does this finance go specifically? Here are some examples of current projects and priorities that the CEFC is financing.

‍

• Investing toward net zero: Investing in renewable energy, energy efficiency and low emissions technologies across the economy, including large scale wind, solar, and energy storage, and decarbonisation efforts in property, transport, natural capital, manufacturing and infrastructure.
• Advancing Hydrogen Fund ($300 million): Developing hydrogen as a clean, competitive industry.
• Rewiring the Nation Fund ($19 billion+): Modernising Australia’s electricity grid and transmission infrastructure to meet 82% renewable energy targets by 2030.
• Household Energy Upgrades Fund™ ($1 billion): Driving sustainability at the consumer level by helping homeowners install energy-efficient technology.
• Powering Australia Technology Fund ($500 million): Investing in climate tech opportunities which facilitate the development, commercialisation or take up of clean energy technologies.
  ‍

This significant investment capacity is catalysing economy-wide efforts to build a cleaner energy future.

‍

The economic benefits for Australia

‍

The economic upside of large-scale decarbonisation in Australia cannot be overstated. Research shows that transitioning to a greener economy could contribute billions to GDP while drastically reducing greenhouse gas emissions. This is the win-win for business that has the potential to take what used to be suspicion and scepticism and turn it to excitement and optimism, creating opportunity for today and generations to come.

‍

How and where the Australian economy stands to gain from the renewables game

‍

1. Job creation

Sectors such as renewable energy, technology, and infrastructure development are natural hotspots for job growth with a diverse range of roles in demand from technologists to horticulturists, sustainability specialists to engineers. In addition, short-term construction positions and long-term maintenance roles will stabilise regional economies, spreading the employment gains far and wide.

‍

2. Energy independence

By relying more on locally produced renewable energy, Australia can reduce its dependence on fossil fuel imports, strengthening energy security and creating a national economic buffer.  

‍

3. Technological leadership

The emergence of clean energy technology gives Australian businesses a chance to become global leaders in climate solutions, opening pathways for exports and foreign investments.  

‍

4. Resilience against climate events

By transitioning to green energy, Australia can mitigate risks associated with climate change, from flooding events to droughts, both of which have significant economic impacts.  

‍

“These investments aim to deliver substantial investment and economic benefits across Australia, enabling the electrification of our economy using our abundant low-cost solar and wind resources.” - CEFC Executive Director, Bobby Vidakovic.

‍

Targets and progress

‍

As most commercial businesses are aware, Australia has committed to a renewable energy target of 82% by 2030. Simply put, that means we’re saying that within the next 5 years, 82% of our energy production will come from renewable energy sources such as solar, hydro and wind (according to the Clean Energy Australia Report 2025).

‍

So, how are we going with that? The good news is, in the first quarter of 2025, Australia’s main electricity grid reached a new milestone of 43% renewable energy, as reported in a recent the latest Quarterly Energy Dynamics Report by the AEMO, marking the highest quarter share of renewables in the National Energy Market’s (NEM) 25-year history.

‍

Whilst this is positive, there’s still a long way to go. According to the Clean Energy Council, rooftop solar raced past 4 million installations and continues to drive Australia’s clean energy transition, while new investment in utility-scale generation and storage combined last year was the highest on record. However, a step change is still required under the Australian Energy Market Operator’s (AEMO) Integrated System Plan. AEMO forecasts the NEM will require around six times today’s utility-scale wind and solar, and five times today’s consumer energy resources, by 2050. Additionally, around 5,000 km of transmission delivery investment is needed over the next decade, half of which is underway.

‍

How CEFC investment is unlocking transmission

‍

Rewiring the Nation is focused on the unlocking of investments in major transmission infrastructure to enable the future connection of various generation and storage technologies. Whilst these major projects build the momentum and enable the energy quantum shift, it takes initiatives of all sizes and kinds to write a new, greener kind of energy future, and every little bit helps.

‍

Example investmenst

‍

Transgrid - up to $2.075 billion

Transgrid is building an electricity superhighway designed to connect millions of consumers to low-cost renewable energy, strengthening Australia’s energy future and accelerating the transition to clean power.

‍

NAB - $300 million

NAB is cutting borrowing costs for manufacturers, businesses, and farmers to support clean energy projects. This investment helps make renewable solutions more accessible and affordable across key industries.

‍

Westpac - $160 million

Westpac is offering discounted loans to help homeowners install energy-efficient appliances, solar batteries, EV chargers, and insulation — empowering households to lower costs and embrace sustainable living.

‍

How Zembl can help  

‍

Like to do your bit for Australia’s renewables transformation? If your business is interested in energy efficiency and improving your bottom line, Zembl can help.

For businesses that use Zembl for commercial energy procurement, we offer a team of experts whose role is to unlock the full potential of your energy, armed and empowered with today’s leading energy intelligence tools. Business benefit from:

‍

• Zembl Energy Experts – a team of local, expert people at your service.
• Energy intelligence – AI-powered insights from your entire operation’s meter data to uncover and maximise your efficiency opportunities.
• Energy efficiency – using your energy insights, we’ll connect you with our reputed energy efficiency partners to provide professional Energy Audits, renewable energy consulting, PFC advice and more.  
  ‍

If you’d like to know more, it’s as simple as leaving your details and an experienced Zembl Energy Expert will call you right back with the next steps.