Over the past four years, the value of electricity construction work has jumped 74%, from $13.8 billion (USD 8.8 billion) in 2020 to $24 billion in 2024 (in constant 2022/23 prices). This growth is set to continue, with activity expected to peak at $36.4 billion in 2027/28, more than double the 2020/21 level.
This surge is powered almost entirely by the rapid expansion of renewable energy projects, including battery storage and transmission upgrades. Renewable construction has already doubled, from $4 billion in 2020/21 to $8 billion in 2023/24, and is forecast to reach $21.5 billion by 2027/28. Transmission investment has also more than doubled in 2023/24 and is projected to accelerate further in the coming years.
This unprecedented growth is being driven by ambitious government climate targets, the phased closure of coal-fired power stations, and a growing appetite for clean energy exports. A combination of federal and state support, corporate power purchase agreements (PPAs), the Capacity Investment Scheme (CIS), and targeted upgrades to the grid are helping drive this transformation.
However, several challenges could hamper progress. High construction costs, delays in grid connections, and complex agreement processes could hinder project delivery. Additionally, community resistance and planning delays, particularly for wind and transmission projects in regional areas, are significant hurdles.
The current pace of growth is expected to peak in 2027/28, followed by a gradual decline. This downturn is a natural part of the investment cycle, where the rate of increase in capacity will inevitably need to slow as the industry stabilises, and this means a decline in construction.
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