As environmental sustainability and climate change grow more urgent, the conversation around renewable energy is more critical than ever.
Shifting from fossil fuels to renewable energy offers a practical solution to these challenges. However, the path is filled with obstacles such as insufficient investment, bureaucratic delays, grid connection approval hold-ups, community resistance to new infrastructure and a global shortage of high-voltage expertise needed for decarbonisation.The Australian Federal Budget for 2024-25 is dedicating billions to tackle these challenges to energy transition, with a clear goal to boost the nation’s renewable energy capacity from 47.16 GW (gigawatts) in 2019 to 86.21 GW by 2026.1 This major investment is driving the rapid adoption of renewable energy, which is key to building a sustainable future. To give it some context, the average Australian household uses around 18.71 kWh (kilowatt-hours) of electricity per day — about the same as charging 3,742 smartphones.2
Understanding renewable energy, its types, benefits and limitations is crucial for navigating this transition. This article explores these aspects and highlights how we at Beca are helping clients develop and realise new energy production projects.

Source: Statista
What is classified as renewable energy?
Energy generated from fossil fuels contributes considerably to greenhouse gas emissions and climate change. Renewable energy — which is obtained from naturally replenishing processes — is critical in combating these concerns. In fact, according to the International Energy Agency (IEA), renewable energy sources accounted for 28% of global electric power in 2020, with that percentage predicted to climb to 42% by 2028.3But, what precisely are these renewable energy sources? They include solar energy, wind energy, hydro energy, geothermal energy and biomass energy — all of which are replenished naturally on a human time scale. These sources of energy provide alternatives to fossil fuels, helping to meet energy demands without depleting resources. Furthermore, moving to renewable energy decreases environmental impact, conserves natural resources and also promotes a healthier world. This transition is becoming more feasible, cost-effective and technologically advanced, paving the path for a sustainable future.
Types of renewable energy sources
Here's a quick explanation of the five main sources of renewable energy:
- Solar energy: Solar energy captures sunlight using photovoltaic (PV) cells to generate electricity and heat. It can be applied on various scales, from residential rooftops to expansive solar farms, making it a highly versatile energy source. A key advantage of solar power is its significantly lower emissions compared to fossil fuels, as it produces no direct emissions during operation (only during the process of manufacturing the panels). Additionally, solar farms can be built in areas unsuitable for agriculture, maximising land use. Emerging technologies, such as perovskite solar cells and bifacial panels, are improving efficiency and reducing costs, further enhancing solar energy's potential. In some innovative projects, like in Australia, solar farms are combined with sheep farming to maintain vegetation and boost sustainability.4
- Wind energy: Wind energy converts wind's kinetic energy into electricity using wind turbines, which are located both onshore and offshore. Onshore wind farms take advantage of accessible land sites and are generally quicker to develop, offering a cost-effective renewable energy solution. Offshore farms, on the other hand, benefit from strong, consistent winds, making them a reliable energy source. This method of energy production is more eco-friendly, as it doesn't produce any direct emissions. Moreover, innovations like floating wind farms and vertical axis turbines are enhancing the versatility and application of wind energy. These advancements make wind energy an increasingly practical option for meeting our diverse energy needs in the ANZ region.
- Hydro energy: Hydroelectric power harnesses flowing or falling water through dams or run-of-river structures, delivering an efficient, low-emission energy source. However, its reliability can fluctuate due to factors like droughts or low rainfall, as seen in New Zealand when lake levels dropped. Pumped Hydro Energy Storage (PHES) offers a proactive solution by storing excess energy.5 During low-demand periods, it pumps water to higher reservoirs, ready to generate electricity when needed. With advancements in turbine technology and PHES, hydropower is becoming more sustainable and dependable, helping to overcome challenges posed by changing water levels.
- Biomass energy: Biomass energy is generated from organic materials like wood, agricultural wastes and trash, converting them into electricity, heat, or biofuels. This process not only reduces emissions but also provides significant waste management benefits. Advances in biofuels and biogas production are enhancing the efficiency of biomass energy, solidifying its viability as a renewable resource.
- Geothermal energy: Geothermal energy taps into the Earth's internal heat to generate power and provide heating and cooling through geothermal power plants and heat pumps. One of its key advantages is the minimal emissions it produces, with very low levels of carbon dioxide and almost no nitrous oxide or sulphur dioxide.6 Binary-cycle plants operate in a closed-loop system, resulting in virtually zero emissions. Geothermal also has a small land footprint and provides consistent power, which makes it reliable and sustainable.
Aside from the five primary energy sources, new technologies such as advanced biofuels and ocean energy (wave and tidal power) are pushing the boundaries of renewable energy and sustainable fuels. These systems use ocean power to generate energy, which mostly benefits coastal communities. They are constantly evolving, propelled by innovation and the desire for renewable energy sources.
At Beca, we are dedicated to aiding our clients in planning and executing renewable energy projects, which we accomplish by leveraging cutting-edge technology to create effective energy solutions.

Source: Australian Government | Department of Climate Change, Energy, the Environment and Water
The undeniable benefits of renewable energy
Australia's move to renewable energy provides several environmental, economic and health benefits, which makes it an essential component of a sustainable future. Let’s take a look at some of these advantages:Environmental benefits
The electrical industry accounts for around 33% of total national emissions, emphasising the significance of transitioning to cleaner energy sources.7 Solar and wind energy — which emit no emissions while operating — are critical for lowering our carbon footprint. These renewable energy sources also assist to conserve natural resources and improve air quality by reducing dependency on fossil fuels.
Furthermore, renewable energy initiatives benefit biodiversity and ecosystems by reducing habitat disruption compared to fossil fuel extraction. Renewable energy not only reduces emissions but also ensures a steady supply of clean energy, which strengthens Australia's environmental resilience.
Economic impact
Renewable energy projects are boosting employment creation in Australia, from solar panel and wind turbine manufacturing to installation and maintenance. For example, the Hornsdale Power Reserve has created numerous jobs in South Australia while stabilising the power system. Investing in renewable energy infrastructure benefits local economies, especially those in rural places, by attracting new businesses and fostering growth.8 Renewable energy becomes more cost-viable over time as operating costs fall and technology improves.
Public health benefits
With solar and wind power's sharply declining cost, renewable energy offers enormous long-term benefits over fossil fuels. Assuring sustainability, renewables offer a continuous energy source free of resource depletion. By reducing pollutant levels, they assist in minimising healthcare and environmental cleaning expenses. GreenPower users in Australia, for instance, have prevented approximately 17.7 million tons of greenhouse emissions since 2005, equivalent to removing more than 6.8 million cars from the road for a year, therefore improving public health and the environment.9
Overcoming challenges with innovative solutions
Transitioning to renewable energy in Australia requires overcoming numerous challenges, such as:
- Intermittency: Wind, solar and hydro power are weather dependent, causing swings in energy supply.
- Upfront costs: Building renewable infrastructure requires a considerable initial expenditure.
- Infrastructure integration: Integrating renewable sources into the existing electricity infrastructure is complex and needs advanced technologies.
Here are some innovative solutions to these obstacles:
Battery storage technologies
Battery storage technologies are essential for managing the variability of wind and solar power. Projects like the Hazelwood Power Station battery energy storage system (BESS) are transforming ageing infrastructure into modern storage solutions. Beca, in collaboration with AusNet, revitalised the Hazelwood site by seamlessly integrating the BESS into the existing power station, ensuring a steady supply even when production is low. This technology helps stabilise the grid and save costs, as seen with Hazelwood's significant contribution to grid efficiency.
Smart grids
Smart grids use advanced digital technologies, automation and real-time data to optimise the distribution and balance of electricity in the grid. These systems enable the seamless integration of variable renewable energy sources by dynamically adjusting to shifts in supply and demand. Smart grids also facilitate two-way communication between energy providers and consumers, enhancing efficiency, resilience and adaptability. As Australia works toward its net-zero emissions target by 2050, smart grids will be critical in ensuring a more flexible, reliable and sustainable energy system that supports widespread renewable adoption and a cost-effective transition to cleaner energy.10
Policy incentives
Government frameworks such as the Renewable Energy Target (RET) are designed to significantly boost Australia's renewable electricity generation.11 Financial incentives like the Small-scale Renewable Energy Scheme (SRES) provide rebates and certificates for solar installations, making clean energy more affordable.12 Additionally, initiatives like the Solar Flagships Program and state feed-in tariffs support large-scale and local renewable projects, ensuring a robust and sustainable transition to renewable energy.13
Learn more about our renewable energy programs here.
Source: EPA
Shaping sustainable energy outcomes
As Australia capitalises on its plentiful natural resources — such as solar and wind energy — we are getting closer to lowering greenhouse gas emissions, conserving natural resources and stimulating economic growth through job creation and investment in renewable infrastructure.Beca is committed to leading this shift. Our team of inventive thinkers, designers and problem solvers help clients develop and optimise renewable energy projects. We are dedicated to making the energy transition a reality and ensuring that businesses and communities benefit from sustainable, clean energy solutions. We can help realise the future of energy creation and transition via innovative thinking, deep engagement and genuine partnership at every stage of your project, from planning to implementation and optimisation.
Contact us today to explore how we can help you achieve your renewable energy goals and contribute to a cleaner, greener future.
Sources:
- Budget 2024-25 - Investing in a Future Made in Australia
- Skyline Solar - What's the Average kWh Usage Per Day in Australia?
- IEA - Renewables
- Australian Government | Clean Energy Regulator - Combining sheep farming and solar panels at Numurkah
- ARENA - Hydropower / Pumped Hydro Energy Storage
- ScienceDirect - Carbon dioxide emissions from geothermal power plants
- CSIRO - Driving down Australia's energy sector emissions
- Hornsdale Power Reserve - Home
- GreenPower - How GreenPower benefits Australia
- Ministers for the Department of Industry, Science and Resources - Australia's plan to reach our net zero target by 2050
- Clean Energy Council - Market, investment and grid
- Australian Government | Clean Energy Regulator - Small-scale Renewable Energy Scheme
- IEA - Solar Flagships Program
Authors
Peter McCafferty
Business Director - Renewables and Transmission