In the week prior to Christmas, there was $2 billion in new commitments to wind power projects, signalling a renewed burst of momentum for Australia’s renewable energy sector. The announcements come after an extended lull in wind farms moving into construction. This is driven largely by rising costs, supply chain pressures and higher financing expenses.

While the fresh investment is welcome news for the industry, experts say it won’t be enough on its own. Significantly more wind farms will need to be built over the coming decade if Australia is to meet its energy needs and emissions targets. With major projects now receiving financial backing, attention is turning to what has been approved — and the challenges that still stand in the way of getting turbines in the ground.

So, what projects have been given the green light, and what obstacles remain?

Which wind farm projects have been approved?

The Victorian State Electricity Commission has announced it will commit to building the $650 million Delburn wind farm in Gippsland. This marks its first investment in electricity generation in the La Trobe Valley in more than three decades. Meanwhile, Tilt Renewables and Aula Energy have also achieved financial close on major projects over the past week.

Aula Energy’s project, located at Carmody’s Hill in South Australia, is estimated to be valued at $900 million.

Construction across the newly approved wind farms is due to begin early next year. Once operational in 2028, they are expected to generate enough electricity to power around 400,000 homes.

The approvals follow the $2 billion Pottinger Wind Farm in the Riverina region of New South Wales, which received approval in October.

Danny Nielsen, is the chief executive of turbine supplier Vestas. He said momentum in the industry was building and would continue into 2026.

“We can see that you are moving towards a massive release of projects coming up, probably in the second half of 2026 and into 2027,” he told the Financial Review.

According to the CSIRO, the cost of developing wind projects has finally stabilised after three consecutive years of increases — a key factor supporting renewed investor confidence.

What challenges remain?

Despite the recent announcements, experts warn that significant challenges still face wind farm development. Many of the projects committed prior to Christmas are not located in Queensland or New South Wales. These states are where much of Australia’s future renewable capacity will need to be built. In addition, several approved projects rely on substantial government investment. This has played a critical role in enabling them to proceed.

Key challenges include:

• Extended planning approval timeframes
• Pushback from rural communities
• Difficulties securing long-term customer contracts
• Lengthy grid connection processes and transmission constraints

While these challenges may slow individual projects, there is growing optimism for the future of Australia’s clean energy sector. As the transition to renewable energy accelerates, large-scale wind developments are expected to steadily move from planning into construction. This will continue to drive demand for skilled construction workers. This includes engineers, project managers and tradespeople across regional and metropolitan Australia.

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Macdonald-Smith, A (24 December 2025) ‘Billions in wind farm commitments finally get sluggish pipeline moving’, Financial Review, accessed 29 December 2025.