Market Overview
Australia's power EPC market represents a significant segment of the nation's construction and energy sectors, encompassing the full lifecycle delivery of power generation and transmission projects. The market has evolved from traditional coal-fired power station construction toward a more diversified portfolio that includes renewable energy installations, grid modernization, and energy storage systems. This transition reflects broader national policy objectives and the retirement timeline of aging coal-fired generation assets across eastern Australia.
- •Market valued at approximately $45.9 billion in 2025 with projected CAGR of 6.45% through 2031-2035
- •Portfolio spans thermal power generation, utility-scale solar and wind projects, battery energy storage systems, and transmission infrastructure
- •Activity concentrated in eastern states (New South Wales, Queensland, Victoria) with growing projects in Western Australia and Northern Territory
Growth Drivers
The primary catalyst for market expansion is Australia's commitment to renewable energy targets, with the federal government and state jurisdictions setting ambitious emissions reduction goals requiring massive deployment of wind, solar, and storage capacity. Aging coal-fired power stations are reaching end-of-life status, necessitating replacement infrastructure to maintain grid reliability. Additional stimulus comes from the need to upgrade and expand the national electricity transmission network to connect remote renewable resources to population centers and industrial users.
- •National commitment to 82% renewable energy generation by 2030 driving utility-scale wind and solar project pipelines
- •Planned retirement of approximately 25 gigawatts of coal-fired capacity by 2040 requiring replacement power generation
- •Investment in interconnectors and transmission upgrades estimated at billions of dollars to address grid congestion and renewable integration
Segmentation and Regional Analysis
The market is structured around power generation sectors including thermal power (remaining coal and gas-fired facilities), renewable energy (utility-scale solar photovoltaic, onshore and offshore wind), and energy storage systems. Transmission and distribution infrastructure represents a growing segment as grid operators invest in high-voltage transmission lines and substations. Geographically, New South Wales and Queensland account for the largest share of activity due to retiring coal assets and renewable resource availability, while Victoria maintains significant projects through offshore wind initiatives, and Western Australia pursues mining-related power and renewable developments.
- •Generation segment undergoing structural shift with renewable energy projects now comprising the majority of planned capacity additions
- •Energy storage EPC emerging as distinct high-growth category with grid-scale battery installations across multiple states
- •Regional variations reflect state-level policies, coal dependency timelines, and renewable resource endowments
Trends and Outlook
What are the recent trends and outlook?
The market trajectory points toward sustained growth as the energy transition accelerates, with offshore wind emerging as a significant new segment following project approvals in Victoria and New South Wales. Integration of renewable generation with firming capacity through batteries and pumped hydro represents a complex engineering challenge driving demand for sophisticated EPC capabilities. Digitalization, including grid-scale control systems and advanced project delivery methodologies, is becoming standard as project timelines compress and technical requirements grow more demanding.
- •Offshore wind projects targeting initial commissioning by 2030 opening new EPC opportunities with international supply chains
- •Hybrid renewable projects combining solar, wind, and storage requiring integrated engineering and construction approaches
- •Workforce capability and supply chain localization becoming critical success factors as project volumes increase through the 2030s
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Connect to an analyst →Market size and forecast are Claight Analysis, informed by public research and industry data. Historical years before 2025 and all forecast years are Claight estimates at the stated CAGR. Retrieved 2026.