Australia’s renewable energy sector underwent significant transformation in 2024, with legal reforms and policy initiatives underscoring the Australian Government’s commitment to a sustainable energy future. However, the challenges encountered during this period highlight the complexities of transitioning to a majority renewables future. As we look ahead to 2025, the question that emerges is how to overcome the various legal regulatory and investment challenges to ensure Australia hits its renewables targets. In this article, Christopher Hewitt and Caroline Faeh review some of the major legal, policy and regulatory changes in renewable energy in 2024 and look ahead to what is on the horizon for 2025.
2024 - A year of legal advancements
In 2024, landmark legislation laid the groundwork for an ambitious energy transition.
Queensland’s Energy (Renewable Transformation and Jobs) Act 2024 exemplified this effort by providing a robust framework to achieve the state’s goal of 80 percent renewable energy by 2035. By focusing on governance and infrastructure, the Act sought to set a clear direction for the transition but also aligned with the nation’s broader climate goals. However, the change of Queensland Government puts the future of this and other legislation in doubt in 2025.
At the federal level, the Future Made in Australia plan reinforces Australia’s commitment to fostering a green economy. This initiative introduces incentives for domestic renewable energy infrastructure and manufacturing, positioning the country as a leader in clean energy technology on the global stage. Designed to accelerate the transition to a net zero economy, the plan proposes investment in the development and production of renewable energy technologies in Australia, and reducing reliance on imported components, such as solar panels and wind turbine parts. The impact on international manufacturers and importers of renewable technology into Australia could be significant in 2025.
Another key development was the continued establishment and development of Renewable Energy Zones (REZs) across states. These zones aim to streamline approvals and facilitate the integration of renewable energy projects into the grid. They reflect a growing recognition that coordinated planning is critical to scaling up renewable energy capacity. There have been delays and challenges in developing some of the REZs and we expect there will be renewed investment and drive in 2025.
Western Australia, South Australia and the Australian Capital Territory have entered into bilateral Renewable Energy Transformation Agreements (“RETAs”) with the Federal Government to increase the capacity of Australia’s grid to deliver more reliable, affordable and low-emissions energy. These RETAs commit the Federal Government and State and Territory governments to work together to maintain electricity system reliability through the exit of ageing coal generators, address planning and environmental approval bottlenecks and drive better social and economic outcomes.
Addressing persistent challenges
Despite some advancements, the renewable energy sector faced significant challenges. Regulatory delays, particularly under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC), emerged as a major bottleneck. Over one hundred renewable energy projects experienced delays due to lengthy environmental assessments, which has a flow on effect for investors, customers, and developers.
There has been significant focus on the impact of the transition to renewables on exposing vulnerabilities in grid stability. Concerns regarding potential blackouts emphasized the urgent need for robust backup systems and infrastructure upgrades. These challenges underscore the importance of meticulous planning to ensure that the energy transition does not compromise reliability.
The Path Forward in 2025
Looking ahead to 2025, there is cautious optimism about the trajectory of renewable energy in Australia. The Australian Energy Market Operator (AEMO) projects that renewables could supply up to 75 percent of electricity in the National Electricity Market at peak times. However, achieving this milestone will depend on addressing issues related to grid reliability and ensuring that regulatory processes align with the sector’s rapid growth.
Investments in renewable manufacturing are increasing. The federal government’s $1 billion Solar Sunshot program, aimed at enhancing domestic solar panel production and reducing the dependence on imports. This is another measure in that may result in changes for importers or renewable technology in 2025.
The extension of funding for the Australian Renewable Energy Agency (ARENA) and the establishment of the Future Made in Australia Innovation Fund are expected to drive more investment by Government and private industries in renewables projects across Australia.
Striking a balance
The progress observed in 2024 shows the sector’s potential, but success requires a careful balancing act. The industry is seeking more streamlined regulations, energy security, and policies that foster innovation. Above all, the industry needs policy and regulatory certainty to attract and drive investment in renewables projects.
In 2025, the challenge for policymakers and industry leaders will be to build on the legal and policy frameworks established in 2024 while addressing the sector's growing pains. If Australia can meet these challenges head-on, it is well-positioned to become a global leader in renewable energy innovation, establishing a legacy of sustainable progress for future generations.
Infrastructure, Sustainability and Energy and Moulis Legal
2024 was a big year for Moulis Legal in our long-term partnership with the renewables sector.
Our projects over the year included specialist legal advisory for Canberra’s Big Battery financial close, general legal counsel to Zeekr (Australia’s most exciting new EV entrant) and advising on the import of critical renewables technologies and key projects. In November we launched our Infrastructure, Sustainability and Energy (ISE) project group.
In 2025, we will build our focus on renewables, infrastructure and sustainability projects and transactions across Australia and internationally.
This memo presents an overview and commentary of the subject matter. It is not provided in the context of a solicitor-client relationship and no duty of care is assumed or accepted. It does not constitute legal advice.
