Australia Adds 5.9 GW of Renewable Capacity to the Grid in 2023

Rooftop solar emerged as the primary contributor, with a capacity of 3.1 GW


According to the Clean Energy Council (CEC), Australia added 5.9 GW of renewable capacity to the grid in 2023, up from 5 GW in 2022.

Rooftop solar contributed 3.1 GW, while utility-scale projects added 2.8 GW. This marked an increase from 2022 when rooftop solar provided 2.7 GW, and utility-scale projects contributed 2.3 GW.

The share of renewable energy in Australia’s total electricity generation also grew, reaching 39.4% in 2023, up from 35.9% in 2022.

As of December 2023, 56 renewable energy generation projects were under construction, down from 72 in 2022. These projects totaled approximately 7.5 GW in capacity, a decrease from the 9.5 GW at the end of 2022.

Among these projects, 38 were large-scale solar projects, and 13 were wind farms. This was a decline from 2022, with 48 solar projects and 21 wind projects in development.

Additionally, three combined wind/solar projects (130 MW) and two biomass projects (61 MW) are in progress.

Rooftop Solar

In 2023, rooftop solar emerged as the primary contributor to Australia’s renewable energy landscape, with a capacity of 3.1 GW. This accounted for 28.5% of all renewable energy and 11.2% of the country’s total energy generation, marking an increase from 25.8% and 9.3%, respectively, in 2022.

The number of Australian households with rooftop solar PV systems installed rose to approximately 3.7 million by the end of 2023, up from about 3.4 million in 2022.

There were 337,498 new rooftop solar installations in 2023, compared to 315,499 in 2022.

The average size of installed systems continued to rise, reaching 9.3 kW, compared to 8.7 kW in 2022.

Large-scale solar

In 2023, utility-scale solar emerged as the leading contributor to new capacity, providing 1.9 GW, a significant increase from 841 MW in 2022. This capacity was spread across 15 newly commissioned projects, up from 12 in the previous year.

Among the notable projects were Neoen’s Western Downs Green Power Hub in Queensland and ACEN Australia’s New England Solar Farm Stage 1 in NSW. Both are 400 MW developments and are now the largest solar farms in Australia.

However, new financial commitments to large-scale generation projects in 2023 totaled $1.5 billion, a considerable decrease from $6.5 billion in 2022. Despite the outstanding performance of the large-scale storage sector, overall investment figures remained lower compared to 2022. Additionally, seven new financial commitments to solar projects in 2023 totaled 921 MW, down from 10 projects and 1.5 GW in 2022.

This slowdown reflects the challenges in making new investment decisions, including a constrained grid, slow planning processes, higher costs, and tighter equipment and labor markets.

Large-scale Wind

The large-scale wind sector experienced a down year, adding 942 MW of new capacity, a decline from 1.4 GW in 2022. Among the seven wind farms commissioned in 2023, Squadron Energy’s 244 MW Bango Wind Farm in NSW was the largest.

Despite the decrease in capacity added, wind power still dominates Australia’s renewable energy generation, accounting for 33.9%. As a share of Australia’s total energy generation, wind power reached 13.4% in 2023, up from 12.8% in 2022.

As of December 2023, 56 renewable energy generation projects were under construction, down from 72 in 2022.

However, no new financial commitments were announced to utility-scale wind projects in 2023, compared to six in 2022.


At the end of 2023, the number of large-scale battery storage projects being constructed rose to 27, up from 19 in 2022. These projects have a combined capacity of 5 GW / 11 GWh, compared to 1.4 GW / 2 GWh in 2022.

The largest utility-scale storage project currently being developed is the Waratah Super Battery in New South Wales, with a capacity of 850 MW / 1,680 MWh. The NSW Government is undertaking this project through its EnergyCo authority, with construction slated for completion in August 2025.

Total investment in large-scale storage reached $4.9 billion by the close of 2023, up significantly from $1.9 billion in 2022, marking a 157.9% increase. The combined capacity of large-scale storage projects that received financial commitments in 2023 amounted to 3,949 MW / 9,905 MWh.

The year witnessed a record for new financial commitments to large-scale storage. In Q2, investment in big batteries exceeded the billion-dollar mark for the first time in a single quarter, and Q4 surpassed this record.


In its Draft 2024 Integrated System Plan, the Australian Energy Market Operator recommended that Australia incorporate a minimum of 6 GW of utility-scale generation into the National Electricity Market annually to achieve the Federal Government’s goal of reaching 82% renewables by 2030.

Although the addition of 2.8 GW of new capacity across Australia in 2023 is commendable, CEC believes it is evident that Australia requires a significant boost in investment and deployment to meet its targets.

The Australian Renewable Energy Agency recently unveiled a significant initiative with AUD$1 billion (~$651.2 million) investment to enhance domestic solar photovoltaic manufacturing.