When Renewable Infrastructure Retires - What Then?
“What’s not to like?” That’s often the starting point when people discuss renewable energy. But critics are quick to add: what happens when these projects hit retirement age? The RE-Alliance’s July 2025 report, Retirement Age Renewables – Delivering for Australian Communities, (1) tackles this problem head-on. It provides a timely, detailed, and solutions-driven assessment of how Australia can manage wind, solar and battery infrastructure at the end of its life — and why this transition, if done properly, reinforces the investment case for clean energy.
The Retirement Wave is Coming
Australia's shift to renewables is in full swing. As per the report, by April 2025, large-scale wind and solar capacity hit 27.5 GW, while rooftop solar added another 26 GW. But early pioneers are starting to age. More than 1 GW of renewable projects along the East Coast will reach retirement age in the next decade. By 2045, that number could hit 12.5 GW.
This evolution introduces new questions for communities, regulators, and investors: What happens next? Will materials be recycled? Will sites be reused? Who pays for decommissioning?
Refurbish, Repower or Retire
The RE-Alliance (The Australian Renewable Energy Alliance) outlines three paths for end-of-life management:
Refurbishment upgrades key components to extend asset life.
Repowering replaces old infrastructure with modern, higher-output tech.
Decommissioning involves dismantling and restoring sites.
Refurbishment is the least disruptive path and maximises use of existing grid connections. Repowering delivers more energy from the same site, often with fewer turbines. Decommissioning, while necessary in some cases, comes with the greatest reputational and environmental risk — especially if mismanaged.
Key Findings
1. Australia Can Lead — But Gaps Remain.
Despite patchy public awareness, Australia already has some retirement requirements in planning regulations. However, there's limited transparency, especially regarding decommissioning clauses in landholder agreements, and almost no inclusion of refurbishment or repowering provisions. Without improvements, misinformation could fill the vacuum.
2. Financial Assurance is Crucial.
Communities remain wary, scarred by past failures in mining and fossil fuel decommissioning. As per the report, project owners are increasingly adopting financial safeguards such as decommissioning bonds and insurance products — but these practices are far from standardised across the sector.
3. Repowering Has Untapped Potential.
As per the report, a 2024 study by GHD suggests that 1.7 GW of retiring wind capacity could be repowered to produce 6 GW — using one-third the number of turbines. Yet no planning frameworks specifically support this option. Regulatory, technical and community engagement barriers must be addressed for this pathway to scale.
4. Recycling Opportunities Are Real — But Need Support.
Wind turbines are over 90% recyclable. Solar panels can be 95% recyclable. Battery recycling remains low but is technically feasible. However, logistical challenges and lack of end-markets mean much ends up in landfill — despite local innovations such as turbine-blade surfboards and solar panel refurbishment pilots.
5. Policy and Practice Still Catching Up.
States like Victoria and Queensland are leading with clearer requirements, but many jurisdictions — such as WA, ACT and NT — lag behind. Moreover, the Australian Energy Market Operator (AEMO) still assumes assets are scrapped at end of life, rather than extending them, missing system-wide benefits of refurbishment or repowering.
A Framework for Action
The RE-Alliance calls for a national, coordinated effort across five priority areas:
Identify opportunities for refurbishment.
Governments and AEMO should explicitly support life extension of projects through policy and planning frameworks.Make repowering easier.
Streamline approvals for upgraded sites with the same or reduced impacts. Model European policies that encourage rapid repowering in renewable energy zones.Improve confidence in decommissioning.
Establish financial assurance frameworks and make best-practice commitments public. Use rating schemes to reward responsible operators.Provide leadership on reuse and recycling.
Accelerate circular economy efforts through stewardship schemes, reverse logistics investment, and end-market development.Enhance environmental outcomes.
Push beyond “returning land to prior use” and instead “return it better”. Incorporate revegetation and biodiversity goals into retirement planning.
Why This Matters for Investors
From an investment perspective, this report is not a red flag — it’s a roadmap. Planning for retirement is a natural part of infrastructure investment, and renewables are no different. What matters is that the sector is proactively engaging with the challenge and aligning solutions with community expectations and sustainability goals.
More importantly, the industry is still in early days. As per the report, many large-scale projects are only now approaching mid-life. There’s time to get this right — and companies that do will be better positioned to secure social licence, avoid regulatory risk and unlock long-term value. Investing in renewables isn't just about generation capacity. It’s about stewardship across the full lifecycle.
The Bottom Line
The clean energy transition isn’t just about building wind farms and solar arrays — it’s about managing them responsibly from start to finish. As per the report, Australia is beginning to address the “retirement age” challenge head-on. Investors should take heart. With the right frameworks, planning and transparency, renewables can deliver value — not just when the sun shines and the wind blows — but well into their next chapter.
References
RE-Alliance. “Retirement Age Renewables – Delivering for Australian Communities.” July 2025. https://www.re-alliance.org.au/retirement_age_renewables
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