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SYDNEY, 15 October 2025 - Global professional services firm Alvarez & Marsal (A&M) today released new insights warning that Australia's $120+1 billion clean energy transition risks stalling unless urgent action is taken to improve investment conditions and de-risk the market for private capital.
The findings - based on market research and a series of Energy Exchange sessions with over 40 senior energy executives and investors - reveal an overwhelming consensus: while Prime Minister Albanese is calling for more foreign investment, Australian private capital is ready and willing to invest. However, the current market environment lacks the policy certainty needed to unlock large-scale deployment.
Key Insights from A&M's Report and Energy Exchange Series:
- All investors agreed that investment attractiveness, not capital availability, is the primary barrier - driven by regulatory uncertainty, long lead times, and lack of blended financing models.
- Utility-scale project returns have dropped putting significantly with many project economics on "shaky ground."2
- Sector insolvencies are rising, creating further urgency for risk-adjusted returns and sustainable business models.
"Rising costs and growing complexity across the renewable energy sector are making responsible investment structuring more important than ever," said Igor Sadimenko, Managing Director and Country Head for A&M Australia's Performance Improvement practice.
"The capital is there, and investor appetite is strong - but refining the conditions for investment is essential to keep momentum going and ensure long-term success."
A Call to De-Risk, Align and Act
While the Australian Government's ambition, including a target of 82% renewable energy by 2030 is globally competitive, private investment to accelerate the transition is lagging. A&M's paper outlines key solutions to unlock private capital and close the investment gap, including:
- Blended finance models combining public and private capital
- Portfolio financing structures to spread risk across technologies and geographies
- Policy certainty and nationally consistent investment settings
- Accelerated investment into decentralised behind the meter solutions at scale to complement utility-scale developments
"Australia has both the ambition and the capital," said Ellie Atkinson, Managing Director, A&M Energy. "What's needed now is a stronger bridge between the two. Our work shows the private sector is ready, the next step is establishing a clear, investable conditions that turns ambition into action."
Footnotes
1 2024-integrated-system-plan-isp.pdf
2 Renewable energy investment looks to be going from boom to bust as prices collapse - ABC News
Originally published 15 October 2025
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