Wind Farms – Adding wind to Australia’s energy sails

Falling development costs and technology advancements position wind as Australia's cheapest large-scale renewable.

Paul Simos · Venture Insights1 January 2018Period: January 20188 min read

Last updated 8 June 2026

30.8%→

Wind's share of total renewable energy generation (2016)

5.3%→

Wind's share of Australia's total electricity supply (2016)

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Companies covered:AGLEnergy AustraliaOrigin EnergyWindlab LimitedGE Renewable EnergyVestasXinjiang GoldwindStatoil

Abstract

This report analyses the Australian wind energy sector, highlighting its role as a leading source of renewable power. In 2016, wind supplied 5.3% of Australia's total electricity and 30.8% of its renewable supply. Despite policy uncertainty following the Coalition government's move to end subsidies after 2020, falling costs and technological improvements in turbine size and location selection ensure wind remains a critical, cost-effective component of Australia's future energy mix, including emerging offshore opportunities.

Key Takeaways

Wind power is the leading non-hydro renewable in Australia, contributing 30.8% of renewable generation compared to 16% for solar PV.
The sector faces significant policy uncertainty as the Coalition government plans to end new renewable subsidies after 2020.
South Australia leads the nation with 36.9% of total wind capacity, meeting 40% of the state's electricity needs in 2016.

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Frequently Asked Questions

Wind is the primary driver of Australia's renewable energy, generating nearly double the electricity of solar. In 2016, wind accounted for 30.8% of the nation's total renewable supply, producing 12,903 GWh of energy.

Wind power currently supplies 5.3% of Australia's total electricity. This output places Australia 17th globally for wind power generation capacity as of 2016.

The federal government provided $589 million in subsidies to wind farm operators in 2016. While these subsidies are set to end after 2020, falling equipment costs and technological advancements in turbine size ensure wind remains a cost-effective energy source.

Renewables are critical to solving the current energy crisis, with wind providing a zero-pollution, endless supply of power. Improving location selection and the expansion into offshore opportunities will increase the 12,903 GWh currently generated annually.

Wind Farms – Adding wind to Australia’s energy sails

Abstract

Key Takeaways

Frequently Asked Questions

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