Coal’s share of Australia’s electricity generation fell below 50% for the first time in the last week of August, a record low alongside a rise in the share of renewables, according to public data seen on Wednesday.
According to public electricity market data monitoring platform Open-NEM, coal generated 49.1 per cent of Australia’s electricity in the last week of August, while renewables accounted for 48.7 per cent, with storms boosting wind generation.
For comparison, in 2000, more than 80% of Australia’s electricity came from coal.
However, Australia remains one of the world’s largest exporters of coal and gas and relies heavily on fossil fuels to generate its electricity.
According to climate finance expert Tim Buckley, the August low was caused by turbulent weather and high temperatures for a transition to the southern spring, which reduced demand by up to 20%.
Winds exceeding 150 km/h in the southeast of the country have almost doubled wind-generated electricity production.
“It’s a historic low for coal’s share of the Australian electricity market, but it’s also a sign of where we’re headed,” Buckley told AFP, saying that “in just a few years, coal’s share will be virtually zero.”
– Development of renewables –
Coal accounts for about a third of global electricity generation, according to the International Energy Agency, and demand for the climate-warming fossil fuel hit a record high in 2022.
According to the agency, to achieve carbon neutrality by 2050, all coal-fired power plants must cease operations by 2040.
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With most of Australia’s 16 coal-fired power stations set to close in the next few years, the governor and industry are investing in renewable energy.
Canberra on Wednesday unveiled six projects to enable the storage of 1,000 megawatts of electricity by 2027 in the country.
Last month, the government also approved plans for a massive solar farm in northern Australia.
Australian Environment Minister Tanya Plibersek said the facility would generate enough energy to power 3 million homes and export electricity to Singapore via a cable.
According to Energy Minister Chris Bowen, the energy transition is happening because “the climate demands it, and so does economic reality”.
“We need to implement the right solutions now, not in a decade, not in two decades, to ensure that Australia’s energy needs are met.”
Domestic investment in renewables is growing, but still lags behind other countries, says Tim Buckley.
“China has overtaken Australia in renewables. It is investing almost 1,000 billion Australian dollars (606 billion euros) per year in clean technology and in renewables,” explains the expert.
“China installs as much new renewable capacity in a week as Australia does in a year,” Mr Buckley adds.
Last week, Australia’s energy regulator warned that investment in the sector was needed to avoid power outages in the coming decades, which are expected to see demand soar.
In May 2024, Australia announced it was delaying the closure of its largest coal-fired power station, saying it still needed the highly polluting facility while it increased its share of renewables. The massive Eraring power station in New South Wales state was due to close in 2025, but the state government has given it a two-year lifeline.
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