Australia's Grid Hits 50% Renewables Milestone

Australia's main electricity grid has achieved a significant milestone, with renewables and energy storage supplying over 50% of the electricity for the first time last quarter. This marks a crucial step in the nation's long energy transition. During the same period, wholesale power prices saw a notable decrease of over 40% compared to the preceding year.

This positive shift is attributed to increased generation from wind, solar, and grid-scale batteries, while gas and coal generation have fallen to historic lows. Despite recent localized outages caused by bushfires and heat, the power system largely coped well with heatwaves, partly due to high rooftop solar output.

Consumers may begin to experience lower retail electricity bills by mid-2026, provided these positive trends continue and no new issues arise. Future infrastructure developments and the continued transition away from coal and gas are expected to further stabilize energy prices.

Challenges persist, including the need for new transmission lines and the gradual closure of coal plants. While gas will remain a necessary backup, its role is evolving amidst market complexities. Victoria's progress on offshore wind targets also faces development delays.