Renewables Driving Regions

Big renewables projects are driving a $23 billion increase in infrastructure spending in regional Australia, leading to more jobs and demand for property.

Data from  Macromonitor says wind, solar and transmission facility projects will push regional construction spending up by 19% between FY2025 and FY2027.

In comparison, the spending in capital cities on infrastructure projects is expected to increase by 7% or $12 billion during the same period.

Macromonitor director Nigel Hatcher says of the 30 largest projects added to the Australian Construction Industry Forum database in May, 19 are renewable energy projects worth a total of  $23.5 billion. This brings spending on projects in this sector to $38.5 billion.

In capital cities, big spending infrastructure projects are generally road or rail projects.

Hatcher says the amount of infrastructure spending is stabilising in capital cities.

“It’s not going to go any higher and will start to drop off in the next couple of years,” he says.

The data also shows residential construction spending will increase by 18% in regional areas across the next two years.