Australia is expected to generate “billions of dollars” in favor of renewable energy under the country’s new carbon tax system, according to an Industrial Info Resources report. New renewable energy targets set to take effect in mid-2012 are likely to prompt Australian power companies to boost their renewable energy portfolios, the report says.

In 2010, renewable energy accounted for 9 percent of the country’s electricity production. The Clean Energy Plan aims to increase renewables to 20 percent within 10 years, Industrial Info reports.

Industrial Info says it is tracking more than $34 billion in renewable energy projects (solar, wind, hydro, and geothermal) in Australia. Wind power projects are the most numerous, accounting for 70 percent of the country’s renewable energy database; however, more than 90 percent of Australia’s electricity is derived from fossil fuels.

Some of Australia’s biggest energy retailers are already increasing their portfolios, like AGL Energy, which Industrial Info says has $2.4 billion in renewable energy investments, including large wind power projects. Origin Energy is also investing heavily in wind power projects throughout Australia and taking steps in geothermal power as well.

To read the full Industrial Info Resources report, click here (registration required).