Australia Crosses Historic Clean Energy Milestone as Renewables Supply Over 50% of Grid Power

Australia has reached a landmark moment in its energy transition, with renewable energy sources supplying more than 50% of total electricity generation in the National Electricity Market (NEM) during late 2025 — the first time in the country’s history that clean energy has dominated its primary power grid.

The milestone reflects a rapid transformation of Australia’s electricity mix, driven by accelerating investments in wind power, large-scale solar, rooftop solar, and battery energy storage systems. The NEM, which covers Queensland, New South Wales, Victoria, South Australia, and Tasmania, has emerged as one of the world’s fastest-transitioning major power markets.

Data from Australia’s grid authorities show that the surge in renewables was underpinned by strong wind generation, record solar output, and a sharp rise in battery dispatch. Rooftop solar continued to play a critical role, supplying unprecedented daytime electricity volumes and reducing reliance on conventional power sources.

At the same time, fossil-fuel generation declined sharply. Coal-fired power fell to some of its lowest quarterly levels on record, while gas-based electricity generation dropped to historic lows, highlighting the growing competitiveness of renewables in both cost and reliability.

The clean-energy surge also delivered economic benefits. Wholesale electricity prices across the NEM fell significantly compared with the previous year, supported by abundant low-cost renewable generation and improved grid flexibility from battery storage assets.

Energy analysts say the milestone demonstrates Australia’s ability to operate a modern power system with high renewable penetration while meeting rising electricity demand driven by electrification, population growth, and extreme weather conditions.

Looking ahead, Australia is targeting an even deeper transition, with national energy plans aiming for over 80% renewable electricity by 2030. Continued expansion of transmission infrastructure, grid-scale storage, and firming capacity will be critical to sustaining momentum and ensuring long-term system reliability.

This achievement positions Australia as a global reference point for large-scale renewable integration and underscores the accelerating pace of the global clean energy transition.

Author: Girish
Published: 3 February 2026
Source: SolSetu – Renewable Energy News