18 Oct
News

Australia's Renewable Energy Expansion: Progressing the Transition to a Low-Carbon Economy

Australia’s energy sector is rapidly shifting towards renewable energy, with significant projects underway across solar, wind, and battery storage technologies. The latest data reveals large-scale renewable energy build-outs across various states, with Queensland, New South Wales, and Victoria leading the push for cleaner energy. As the nation works towards decarbonization and increasing energy resilience, the role of renewable energy and storage systems is becoming increasingly prominent.

Australia’s energy generation remains diverse, with coal and gas still playing a key role. The existing generation capacity totals 64,097 MW, spanning technologies such as coal, gas, solar, wind, water, biomass, and battery storage. Notably, coal continues to provide substantial capacity at 21,255 MW, but 2,880 MW of this is set to be withdrawn in the coming years. Gas (CCGT and OCGT) accounts for over 10,000 MW of capacity, with gas turbines remaining a flexible option for grid balancing. Solar currently contributes 9,103 MW, and wind contributes 11,125 MW, both playing essential roles in the growing renewable energy mix. Battery Storage represents 1,605 MW, reflecting the growing importance of energy storage in ensuring grid stability.

Renewable energy is seeing unprecedented expansion across Australia, with large build-outs of solar, wind, and battery storage projects. The most significant growth is observed in Queensland, New South Wales, and Victoria, which are leading the transition towards a cleaner energy future. Queensland (QLD1) is the leader in renewable energy build-outs, with a staggering 59,165 MW of capacity currently under development. This positions Queensland as a key player in Australia’s renewable energy transformation, with a strong focus on solar, wind, and battery projects. New South Wales (NSW1) follows closely, with 42,633 MW of renewable projects underway. The state is heavily investing in both solar and wind power, along with large-scale battery storage systems to ensure energy reliability. Victoria (VIC1) is developing 34,694 MW of renewable energy projects, continuing its commitment to wind and solar energy, alongside storage systems. South Australia (SA1) and Tasmania (TAS1) are also contributing to the renewable energy boom, with 12,223 MW and 3,313 MW of capacity in development, respectively. South Australia, in particular, has been a leader in integrating renewables, especially wind energy, into its grid.

In terms of the specific technologies driving this expansion, battery storage is seeing the largest growth, with 70,624 MW under development across 338 projects. This rapid expansion reflects the critical role that batteries will play in stabilizing the grid as more intermittent renewable energy sources, such as solar and wind, are integrated. Solar energy remains a major contributor, with 32,750 MW under development across fixed and single-axis tracking systems. Solar projects are being developed across all major states, with Queensland, New South Wales, and Victoria leading the way. Wind energy is another key driver of the renewable transition, with 38,890 MW in development. This includes 20,647 MW of offshore wind projects, further highlighting the potential of Australia’s coastal wind resources.

Queensland’s dominance in renewable energy development underscores the state’s commitment to becoming a leader in the renewable energy transition, particularly in large-scale solar and wind projects. New South Wales and Victoria are also seeing significant build-outs, with both states investing heavily in solar, wind, and battery storage projects to future-proof their energy grids. Battery storage is playing a critical role across all states, with 70,624 MW in development. These storage systems are essential for balancing the grid as more intermittent renewable sources come online, ensuring reliable energy supply during periods of low generation. Wind and solar energy are seeing extensive growth, with a combined 71,640 MW under development.

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