Renewable energy sources are quickly taking over the global energy sector. As of April 2019, renewable energy made up a third of global power capacity. Many big players in the industry include countries like Costa Rica, Chile, and China. However, the overall growth of the sector was biggest in Oceania, with countries like Australia and New Zealand fostering a 17.7% increase in the installation of renewable capacities in 2018.
This innovative and emerging market is proving to be very prosperous in the Australasian region. Australia and New Zealand each have their own unique set of resources and approaches to the market, which creates a host of investment and business opportunities.
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Renewable Energy – Staggering growth in Australia’s industry
Australia’s renewable energy industry is booming, and it will continue to grow in the years to come. Just in the past twelve months, the sector doubled energy output and committed over AU$20 billion to renewable energy projects. According to the Clean Energy Council, these projects include the construction of over 80 wind and solar farms and the installation of solar panels on homes. Over two million Australian homes have solar panel installations on their roofs.
Currently, the strongest renewable sectors in the country are in hydro-generated energy, wind generation, and solar generation.
Hydropower, the largest sector in the country, accounted for 35.16% of renewable energy in Australia in 2018 and 8% of total energy in the country. The opportunity presents itself in this market with the ever-increasing use and demand for hydropower electricity. Moreover, opportunity waits in the ‘mini-hydro’ sector, which runs off of river flow. Ultimately, this eliminates environmental issues created by traditional hydropower tools such as dams or water storage.
Wind-power, the second-largest sector, accounted for 33.46% of renewable energy in the country and 7.1% of Australia’s overall energy. Chances for investment and collaboration are flourishing in this industry between Australia and Asian countries. Most recently, developers from Beijing created the first wind and solar power farm in Australia. Overall, the renewable energy farm will save around AU$6 million in energy costs.
Opportunity in Australia
The newest industry on the climb is Hydrogen fuel. Although still very new, this industry shows lots of promise and is being tested by researchers all across Australia. Hydrogen fuel will be able to fuel cars, heat homes, and generate electricity, should research continue. It is a hot topic in Australia to invest in due to its potential for exportation, a domestic fuel supply, and because it would serve as a boost to the power grid.
Investing in Australia’s renewable energy sector is proven to be a very lucrative business decision. With a wide range of renewable energy resources already in place, as well as the emersion of new possibilities, foreign businesses and investors should pay close attention to Australia’s energy sector.
Finding funding in Australia
Companies and researches that wish to establish renewable energy businesses and/or projects in Australia can find funding through the Australian Renewable Energy Agency (ARENA). This government organization funds businesses and projects which have demonstrated the feasibility and potential commercialization of their product. Through their Advancing Renewables Program, companies that are delivering secure and reliable energy, accelerating solar PV innovation, improving energy production, or exporting renewables receive funding.
Renewable energy sector in New Zealand
New Zealand also plays a big part in the renewable energy market. In 2018, 40% of the country’s primary energy came from renewables, and 84.8% of electricity was generated from renewables. Moreover, experts predict that the country will be able to generate 100% of their electricity from renewables if it continues on its current path.
Currently, the biggest renewable sectors in New Zealand are geothermal, hydro, wind, and bioenergy.
Geothermal is the most abundant resource for New Zealand because the country sits above a tectonic plate boundary in the Earth’s crust. As the most abundant resource, geothermal energy supplies New Zealand with 22% of its total energy supply and over 17% of its total electricity supply.
Currently, companies and investors are looking for ways to make the geothermal energy industry more accessible to everyday people. They are also investigating direct heat supplies, rather the building up large power plants to generate energy.
New, incredible energy source in New Zealand
One of the newest renewable energy sectors is a wave and tidal energy. This sector, while still being studied, shows a great deal of promise. New Zealand is leading the world in researching the phenomenon. Moreover, the country is also home to the world’s first and only wave and tidal power device.
Investment in this industry lies in the creation and development of machines which convert wave and tidal flows into electricity. As of now, underwater turbines are the farthest that researchers have gotten. There is a demand for technology which makes this process faster and easier.
Ready to invest in the future?
The renewable energy industries in both Australia and New Zealand present a host of opportunities for businesses and investors. Ultimately, these two countries could become the world’s leading renewable energy suppliers. It is important to get involved in this ground-breaking industry while there’s still time.