Australia’s potential as a producer of green hydrogen could help drive a rapid expansion of its solar photovoltaic (PV)  generation capacity this decade, according to consultancy Wood Mackenzie.

Australia can expect 23GW of solar PV capacity additions this decade, according to analysis by the firm.

“The country’s state level renewables target and green hydrogen potential could drive its solar PV penetration in power generation to over 20pc by 2030, making it the highest in the region,” Wood Mackenzie says.

23GW – Australia expects solar PV additions by 2030

Australia is keen to position itself as a big hydrogen exporter to Asian countries, especially Japan and South Korea.

The government, which set out a national hydrogen strategy in 2019, has said it will spend A$275.5mn ($204mn) during 2021/22 to support the development of four clean hydrogen hubs and trial a hydrogen guarantee of origin scheme.

Total Asia Pacific solar PV capacity could triple to 1,500GW by 2030, according to Xin Zhang, consultant with Wood Mackenzie.

 “Carbon-neutral targets lead solar installations in Asia Pacific in the post-subsidy era,” she says. “Policies are evolving to overcome market barriers, enabling Asia Pacific’s solar generation share to grow from 4pc in 2020 to 10pc in 2030.” 

China will remain the regional and global leader, adding 619GW of solar PV capacity over this decade.  The country’s strong policy push and ambitious solar targets mean it will contribute over 60pc of Asia Pacific’s solar PV capacity by 2030. Meanwhile, Vietnam will have 15pc solar PV penetration in power generation by 2030, second in the region to Australia, analysis by Wood Mackenzie shows.

Solar accounts for about 7pc of Australia’s power generation, according to government data.

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Author: Stuart Penson