The country is one of the main producers of coal. But the weather conditions have boosted wind power in particular.
It is a milestone for one of the world’s most extractive countries. 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 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.
Australia remains one of the world’s largest exporters of coal and gas, and relies heavily on fossil fuels to generate its electricity. 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%, according to climate finance expert Tim Buckley.
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.”
Between 2022 and 2023, fossil fuels accounted for 91% of national energy consumption, a broader indicator than electricity production since it includes fuels used in the transport and industrial sectors.
Development of renewables
With most of Australia’s 16 coal-fired power stations set to close in the coming years, the governor and industry are investing in renewable energy. Canberra unveiled six projects Wednesday to enable the storage of 1,000 megawatts of electricity in the country by 2027.
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 A$1 trillion (€606 billion) a year in clean technology and renewables,” the expert explains. “China is installing as much new renewable capacity in a week as Australia does in a year,” adds Mr Buckley.
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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