Australia’s race to net zero: A new era of energy investment
Australia’s race to net zero: A new era of energy investment
Australia’s pathway to net zero is igniting a new wave of mergers and acquisitions (M&A) as investors reposition themselves around the energy transition. The Capacity Investment Scheme (CIS), introduced to stabilise the energy market and accelerate the shift away from coal, has become a powerful catalyst for deal activity. By providing long-term revenue certainty for renewable and dispatchable projects, it is unlocking capital and reshaping how investors approach scale, risk, and value creation.
- Global capital converges on Australia: Australia has become a focal point for both international and domestic investors seeking exposure to renewable energy growth. Cross-border partnerships and strategic acquisitions are increasing as global funds and energy majors move to establish a foothold in one of the world’s most active clean energy markets.
- Government initiatives intensify competition: The CIS is driving large-scale investment and injecting much-needed confidence into the sector. As auction rounds expand, developers and investors are moving quickly to secure projects and platforms that align with long-term policy pathways and investment incentives.
- Hybrid assets lead the next wave of deals: M&A activity is shifting toward hybrid portfolios that combine renewables with storage or firming capacity. These assets are increasingly prized for their grid resilience, dispatchability, and alignment with Australia’s long-term decarbonisation goals.
Capital meets capability: Renewables and mining drive the next wave of deals
A new convergence is taking shape between renewable energy and mining. Major developers and miners are partnering to secure stable, low-emission energy and advance industrial decarbonisation. This collaboration is redefining how energy infrastructure is financed and delivered, linking production with consumption and creating long-term, integrated value chains.
These partnerships are reshaping traditional deal structures. Investors are backing hybrid and behind-the-meter solutions that blend generation, storage, and industrial demand, creating new models for investment and value creation across Australia’s energy ecosystem.
Market dynamics: Investors position for scale and resilience
With the CIS and state-based schemes driving project acceleration, Australia’s renewable energy market is entering a period of rapid consolidation. Investors are competing to secure scale, platform capability, and first-mover advantage in an increasingly competitive environment. Strategies to lead in a shifting market:
- Move early and act decisively: Investors who position ahead of auction rounds and development milestones are best placed to secure grid access, capitalise on valuation uplift, and capture strategic positions in the market.
- Build scale through platforms: Focus is shifting from individual projects to integrated portfolios that combine generation, storage, and dispatchable capacity. Platform-scale investments offer operational resilience and flexibility as the energy mix evolves.
- Strengthen execution capability: Operational readiness from regulatory compliance to integration planning, has become a key differentiator. Buyers who can close efficiently and manage transition complexity are emerging as preferred counterparties in competitive processes.
- Partner for growth: Collaboration is becoming central to success. Investors, operators, and energy users that align capabilities and capital are best positioned to accelerate development pipelines and capture long-term value.
How BDO’s value creation team supports renewable energy transactions
BDO’s value creation team brings hands-on experience across the full deal lifecycle, helping investors, operators, and developers unlock value from complex renewable energy transactions. Whether entering the market, acquiring a platform, or separating an asset, our team provides the structure, insight, and execution capability to ensure a seamless transition and sustained performance. Our expertise spans:
- Carve-outs and integrations: Designing and managing separation and integration plans that protect asset value, minimise disruption and maintain compliance across dispersed operational sites.
- Operational transition: Supporting control centre handover, O&M contract novation, system integration, and workforce readiness to safeguard performance post-completion.
- Governance and functional transformation: Establishing clear decision frameworks, communication structures and leadership alignment to maintain stability and deliver strategic growth.
- Transaction readiness: Supporting the coordination of external and internal stakeholders across regulatory approvals, AEMO and Austraclear registrations, and SOCI considerations to enable a smooth Day 1.
We help clients navigate policy complexity, accelerate execution, and capture opportunity across Australia’s renewable energy market. Learn more about our recent work and how the value creation team supported in this space.
Connect with our value creation team today to unlock the opportunities shaping Australia’s renewable energy future.
