Renewables Generated 43% of Electricity Used by Australia’s Main Power Grid in First Quarter of 2025

Australia’s main power grid saw a substantial rise in renewable energy generation — including solar and wind — over the past year.

According to Australian Energy Market Operator (AEMO)’s Quarterly Energy Dynamics Report, the grid produced 43 percent of the electricity used across the Australian Capital Territory and five eastern states between January and March. It was the highest first-quarter share of renewables in the 25-year history of the National Energy Market, a press release from AEMO said.

“Polluting, expensive coal continues to dwindle as our renewable and battery capacity ramps up. Renewables will keep breaking records and Australia’s wholesale electricity market will continue to become cleaner and more reliable,” said Climate Councillor Greg Bourne, an energy expert, in the press release.

Grid-scale solar generation was up 10 percent from the first quarter last year, while battery generation was up 86 percent, reaching all-time highs.

Meanwhile, rooftop solar and wind also reached new highs for the first quarter, with increases of 16 and 18 percent, respectively.

Climate pollution from Australia’s electricity system was at its lowest level ever during the first quarter.

“The energy market operator reports that overall our power use is increasing and renewables are meeting the challenge. Not only that, they’re driving down climate pollution from our power system, with carbon emissions five percent lower than the same time last year. All of this is building a cleaner, safer future for our kids,” Bourne said.

Gas usage decreased by 8.3 percent as gas prices on the country’s east coast reached a new first-quarter record.

“Importantly the use of gas went down but the price increased. Australians should be clear that the role of gas in our energy system is small and continues to shrink,” Bourne added.

Australia’s total electricity demand reached a new first-quarter record, primarily due to residents of South Australia and Victoria making more use of their air conditioners, reported The Guardian.

However, electricity demand from large generators and farms saw a slight decrease as rooftop solar played a bigger role. More than four million homes in Australia have solar energy systems.

The report suggested a recent pause in large-scale renewables expansion could be over. For the country to be on the right path toward reaching the newly reelected Albanese government’s target of renewables providing 82 percent of electricity by the end of the decade, experts have said growth must accelerate.

Analyst Johanna Bowyer with the Institute for Energy Economics and Financial Analysis said the rising contribution of renewable energy — especially during midday when the sun is high — led to wholesale electricity prices being negative or zero 18 percent of the time.

Bowyer added that large-scale batteries currently earn 88 percent of their proceeds by buying and storing inexpensive wind and solar energy during daylight hours and selling it in the evening when prices climb.

The other 12 percent was earned by providing electricity as needed to stabilize the power grid.

Stephanie Bashir, Nexa Advisory’s chief executive, said generation of renewables and batteries were having “a positive impact on the system dynamics, wholesale prices and emissions reductions,” as The Guardian reported. “That’s good for power security, reliability, and affordability. What we need right now from the majority-led Albanese government is ambition to accelerate this momentum.”

Bashir said transmission lines were “the missing link” in the country’s energy transition.

“[W]e must unblock progress,” Bashir said. “Regional Australia matters… we need to ensure we are supporting our regions to reap the benefits and bringing them with us on the journey. Do this and we can keep the lights on while getting on with the ultimate objective of becoming a renewable energy superpower.”