Australian Labour Party victory to uplift RE growth: report 

Fitch expects greater certainty and more financial support for the sector.

An election win for the Australian Labour Party (ALP) will mean well for the renewable energy sector as the party is expected to create a more certain policy environment for the sector. 

“We stress that this is a stark shift away from the previous Coalition government that took on a much more skeptical view towards climate change policies and emissions reduction plans, which created policy uncertainties for the sector due to persistent disagreements within the government and a wavering commitment on the Federal level,” Fitch Solutions reported.

According to Fitch, the ALP has stronger support for the sector, which could bring greater certainties and financial support that will be instrumental in driving growth in the sector.

Fitch data showed Australia’s non-hydro renewables capacity is expected to rise by an average of 5.4% annually between 2022 and 2031, reaching 48.7 gigawatts. 

Renewable energy is also expected to contribute 32.1% of the total power mix by 2031.

“We stress that this is relatively conservative when compared with the amount of capacity in the pipeline,” the report also read. 

“This shift in government support could see a greater volume of renewable power projects be realised, posing an upside risk to this outlook.”