Clean energy investment landscape 'deteriorated': Report

Although Australia remains an attractive destination for renewable investments, new research indicates investors are losing confidence.

According to Clean Energy Investor Group's (CEIG) Clean Energy Investor Outlook report for 2026, support among surveyed investors has slipped from 69% to 58% in the last year.

More than three quarters (77%) of Australia's largest clean energy investors believe the investment landscape has deteriorated over the past 12 months and highlighted a "significant gap" between Australia's renewable energy ambitions and investor confidence, with only 8% believing Australia is on track to reach 82% renewables by 2030 under current settings.

Meanwhile, transmission buildout delays are now the biggest challenge facing renewable energy investment and the highest policy priority for investors over the next three years - overtaking planning approvals.

Investors are yet to see meaningful improvements at project level, CEIG said, as grid-side constraints, including connection delays, curtailment and congestion continue to dominate the delivery bottleneck.

In state rankings, which is part of the report, NSW remains the clear leader for renewable energy investment, followed by Queensland, Western Australia and Victoria.

Commenting, CEIG chief executive Richie Merzian said investors are looking for clear signals from Australian governments on faster transmission, coal closures, streamlined approvals, and competitive tax settings, reiterating the significance of recent CGT changes.

"Australia has been a top clean energy investment destination, but that confidence in our country is waning and trending down. Over three quarters of our clean energy investors say the Australian landscape has worsened in the last year. This needs to be addressed with action," Merzian said.

"Investors are losing patience with a system that isn't delivering at pace, and creating additional barriers, like the proposed Capital Gains Tax on existing international clean energy investments.

"It's no wonder less than one in ten investors see Australia meeting its 2030 clean energy target."

He also noted data centres can drive the next wave of investment, as an overwhelming 92% of investors believe growing demand will have a positive impact on unlocking clean energy investment.

"However, data centres must not be used as an excuse to delay coal power closures, which investors want to see retired on time," he added.

"Investors are ready - the handbrake is the system. Without coordinated action to address project delivery bottlenecks and restore certainty, Australia risks losing available clean energy capital to competing markets. And that's bad news for household electricity bills."