Gold Coast: Sun power is plentiful in Australia, especially in the “Sunshine State” Queensland – Image: Matt Barrett/Unsplash
A renewables investment boom has improved Australia’s energy outlook, according to the latest analysis from the Australian Energy Market Operator (AEMO).
AEMO’s annual ten-year outlook – the Electricity Statement of Opportunities – predicts that growing solar, wind and battery power will improve reliability in Australia’s main electricity grid (the National Electricity Market or NEM) and cover the retirement of ageing coal-power stations over the next decade, says the Climate Council Australia.
The AEMO statement outlines how an increase in Australian household solar and batteries alongside investment in larger renewables, battery and transmission projects, is expected to provide a reliable electricity supply, despite consumption surging with increasing electrification and the rapid expansion of data centres.
Climate Councilor and energy expert, Joel Gilmore, said: “AEMO’s latest report comes as the Federal Government is poised to decide its national climate target for 2035. AEMO is very clear that Australia needs to keep this clean energy investment moving. A strong 2035 target will give business and industry a clear policy signal, driving further investment and building an even more reliable, clean energy grid.
“This report spells out that there is a strong stream of new investments in renewable energy in Australia. Committed projects alone ensure we will have a very reliable electricity grid until after 2030, and there is a huge pipeline of potential projects that set us up well for rapid cuts in climate pollution.
“AEMO expects Australian homes and businesses will continue installing rooftop solar and batteries under the government’s home battery scheme. This is a win-win for Australians’ back pockets and the grid: cutting climate pollution and power bills while contributing to system reliability and resilience.
“At the same time the report shows there is no reason for governments to extend the life of coal power stations that are planned to close in the next few years. With a growing pipeline of wind, solar and storage projects, we can reliably power our homes and businesses without polluting coal.”
Australian home owners are investing in rooftop solar power generation – Image: Benjamin-Jopen/Unsplash
Climate Councilor and energy expert, Greg Bourne, said: “The shift to clean, reliable energy is the big first step in slashing climate pollution to ensure a safer future for our kids and grandkids, and it’s heartening to see this report confirm that it’s well underway.
“We need to maintain this momentum in our electricity grid to ensure ongoing reliability as we electrify transport and industrial processes, and bring on new large energy users including data centres. Coordinating rooftop solar, home batteries, and even the batteries in our electric cars is an important opportunity to both improve the reliability of our grid and ensure Australian households benefit directly from the shift.
“Cutting back on coal is clearly doable and the faster we shift to clean energy the more benefits flow to businesses and communities. Governments at all levels must continue to stimulate the investment required to fast-track the renewables rollout – including providing certainty by setting a strong 2035 climate target.”
Other key points in the AEMO report:
- The shift to renewables is well underway for Australia’s main grid (the National Electricity Market), which covers all states and territories except WA and the NT;
- The uptake of rooftop solar and home batteries continues to grow. More than 1 in 3 households now has a rooftop solar system, with support from government programs including the Cheaper Home Batteries Program;
- There are no forecast reliability gaps following the scheduled closure of ageing coal power stations in Australia’s eastern states over the next 10 years, including Eraring, Bayswater and Vales Point (NSW), Yallourn (VIC) and Callide B (QLD); and
- AEMO’s latest forecasts show a 21% increase in operational electricity consumption over the next decade, predominantly driven by the potential rapid expansion of data centre projects and accelerating business electrification.
The Climate Council is Australia’s leading community-funded climate change communications organisation. We provide authoritative, expert and evidence-based advice on climate change to journalists, policymakers, and the wider Australian community. (NAN/Climate Council AUS – 21-08-25)
Further info: climatecouncil.org.au
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