Australia accelerates renewable energy transition and battery deployment

Australia is undergoing a rapid structural shift in its power system as it transitions from thermal baseload generation toward solar, wind, and storage. According to GlobalData, the scheduled retirement of major coal-fired assets, such as Eraring by 2027 and Yallourn by 2028, necessitates the urgent deployment of dispatchable capacity to maintain system reliability.

To support this transition, the federal government’s Capacity Investment Scheme is underwriting 32GW of new renewable and clean firming capacity by 2030. Projections indicate that Australia’s renewable capacity share is expected to rise from approximately 51% to nearly 79% between 2025 and 2035, with renewable electricity generation potentially exceeding 72% in that period.

In a related development for decentralized energy, the Australian Renewable Energy Agency (ARENA) announced that Australia has reached a milestone of 100 installed community batteries. These batteries, funded through the AUD 200 million Community Batteries for Household Solar program, allow multiple households to store excess daytime solar power for use during peak demand. ARENA has also awarded AUD 23.2 million to three additional projects to expand battery networks in regional South Australia, New South Wales, and the Sydney region.