Australia Hits Milestone as Renewables Overtake Fossil Fuels

Australia generated more electricity from sources including wind and solar than it did from coal and natural gas power plants last month, Ember has reported, as cited by Reuters. This is the first time non-hydrocarbon generation exceeded hydrocarbons, the report noted.

The difference was not particularly big, however. Non-hydrocarbon electricity output hit 9.88 TWh last month, while coal and gas generated 9.82 TWh, the data showed. It reflected a 77% jump in generation from wind, solar, and other non-hydrocarbon sources over the last five years, Reuters’ Gavin Maguire reported, citing the Ember data. Over the same period, generation from coal and gas fell by 15%.

The increase in output was the result of an even bigger increase in installed capacity additions. Back in 2019, Australia had 32 GW of low-carbon generation capacity that likely includes hydropower, as well as wind and solar, although the report did not break it down. As of 2024, this amount had expanded 99% to 63.5 GW. Most of this came from solar, which has been growing at an annual rate of 21% over the last ten years. Wind capacity additions have been growing at an annual rate of 13%.

These developments are the result of successive governments’ efforts to set one of the world’s largest coal producers on the path to net zero. Their ambitions envisaged an accelerated phase-out of coal power generation, but more recently, some provincial governments have signaled second thoughts about that.

Queensland, home to one of the world’s largest coal reserves, recently said it would abolish a previous state government decision to close all its coal-fired power plants by 2035, as it vows to pursue a sensible and pragmatic plan to meet its energy needs.

“The former Labor Government’s ideological decision to close coal units by 2035, regardless of their condition, is officially abolished,” Queensland Treasurer and Minister for Energy David Janetzki said last month. “Queensland’s coal-fired fleet is the youngest in the country, and state-owned coal generators will continue to operate for as long as they are needed in the system and supported by the market.”

By Irina Slav for Oilprice.com

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