Most major clean energy investors agree that Australia remains an attractive destination for clean energy investment, however that number has slipped from 69% to 58% in the last year. Confidence is weakening, with just over three quarters (77%) of investors maintaining the landscape has worsened in the last 12 months.
The catalytic impact of the federal election (which 90% of respondents said was a positive in the 2025 Report) hasn’t panned out. The stark reality is that in 2026, only 8% of investors believe Australia is on track to achieve its target of 82% renewable electricity by 2030.
The immediate barriers to investment have shifted in priority. Transmission now tops the list of challenges, followed by state planning (which was tied first in 2025), To help unlock investment in the longer term, investors agreed on the need for certainty, in both coal closures and market and policy settings. New problems are also arising include changing tax settings for clean energy investors.
The problems frustrating the clean energy rollout appear to be well understood, what is needed now is coordination and delivery. New opportunities also exist with a whopping 92% of investors agreeing that data centres are a net benefit and could help underpin the next wave of renewable generation and storage.
At the state level, NSW once again topped the list as an investment destination. Despite having the highest development fees and longest approval timeframes, investors agreed that NSW continues to move in the right direction. Queensland just held onto second place, with the majority of investors pointing to policy uncertainty as the biggest concern.
Western Australia (WA) has jumped up two spots to third place as investors look outside the National Electricity Market for opportunities. WA could continue the climb if it improves market incentives and introduces renewable energy targets. Victoria, which slipped to fourth place, was the worst state for transmission build out. Alongside South Australia (5th place), Victoria continues to suffer from curtailment.
