Renewable energy is supplying a record share of the power in Australia’s main energy grid, according to the latest Quarterly Energy Dynamics Report from the Australian Energy Market Operator (AEMO).
The report says renewables, including solar and wind, powered 43% of Australia’s electricity grid in the first quarter of 2025—the highest first-quarter amount in the National Energy Market’s 25-year history.
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The report reveals:
- Grid-scale solar generation grew by 10% year-on-year to new all-time high of 2.38GW
- Rooftop solar output grew 16% on 2024 to 3.78GW—a record for Q1
- Wind power generation grew 18% to Q1 high of 3.5GW
- Battery output surged 86% to an all-time high of 98MW driven by new capacity entering the market
- Coal output and emissions fell to record Q1 lows and gas generation fell to the lowest Q1 level since 2004.
Institute for Energy Economics and Financial Analysis (IEEFA) electricity analyst Johanna Bowyer said, “Renewables are carving out a bigger slice of the national electricity market while coal output decreases.
“With rising renewables contribution, we are seeing downward pressure on wholesale prices, with prices zero or negative 18% of the time across the quarter.
“This quarter, wind and solar set the spot price at -$27/MWh and -$26/MWh, while black coal set the price at $84/MWh, hydro at $123/MWh and gas at $151/MWh on average.
“Large-scale wind, solar and batteries set records in terms of their average power output, mostly driven by new wind, solar and battery facilities being installed across the national electricity market.
“Large-scale batteries are now earning 88% of their revenue through the energy market – buying and storing abundant low-cost renewable power, which they sell back to the market in the evening when prices are higher. They are earning the other 12% of their revenue through frequency control markets, for helping stabilise the grid.”
Nexa Advisory CEO Stephanie Bashir said the report highlighted that increased market penetration of renewable generation and batteries was having a positive impact on system dynamics, wholesale prices and emissions reductions.
“The record highs in grid-scale solar and rooftop solar, coupled with increased wind and batteries in Q1 2025 really is a good demonstration that the energy transition is well underway and is unstoppable,” Bashir said.
“What we need right now from the majority-led Albanese government is ambition to accelerate this momentum.
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“The QED report also highlights the decline in coal availability to new lows in Q1 and renewables, rooftop solar and batteries are doing the heavy lifting. This means we must deliver the clean energy transition on time, otherwise Australian families and businesses will pay needlessly.
“Transmission lines remain the missing link in the transition—we must unblock progress. Regional Australia matters. We cannot shy away from what is needed, we need to ensure we are supporting our regions to reap the benefits and bringing them with us on the journey.”
