Australia's energy transition is finally delivering results

Renewables and energy storage supplied more than 50% of electricity on Australia's main grid last quarter, and wholesale power prices were about 40% lower year‑on‑year; however, transmission delays, gas market issues and local outage causes mean challenges remain.

Renewables and energy storage supplied over half of electricity on Australia's main grid last quarter, and wholesale prices fell by about 40% compared with a year earlier. The system faced local outages linked to bushfires and heat-related equipment issues, but broadly coped with recent heatwaves. The transition away from coal and gas has been long and complicated, yet recent data show growing contributions from wind, solar and batteries. Infrastructure, market arrangements and gas supply constraints continue to shape the pace of change. What we know: - Renewables and energy storage contributed more than 50% of supplied electricity on the main grid last quarter. - Wind generation rose almost 30%, grid solar about 15%, and grid-scale battery output nearly tripled. - Gas generation fell about 27%, its lowest quarterly level in 25 years, and coal fell about 4.6% to a record low for a quarter. - Wholesale power prices were reported as roughly 40% lower than a year earlier. - Some local outages occurred after Victorian bushfires and due to heat-related failures of poles and transformers, but overall supply largely met demand. Summary: The recent figures indicate the energy transition is beginning to lower wholesale costs and improve how the system manages peak demand, supported by more batteries and rooftop solar. The coming period will hinge on delivery of new transmission and storage, planned coal retirements, developments in the gas market and progress on projects such as offshore wind and EnergyConnect.