Record Clean Energy Additions Ease Blackout Fears in Australia
(Bloomberg) -- Australia is at reduced risk of blackouts over the next decade thanks to a rapid buildout of renewables and batteries that will help offset the retirement of the nation’s coal fleet, according to the country’s energy market operator.
Developers commissioned a record 4.4 gigawatts of renewable generation and storage projects in the past financial year, the agency said in its annual outlook on Thursday. Between 5 and 10 additional gigawatts are expected to come online annually for the next five years, it said.
That pipeline is forecast to help compensate for the closure of about 11 gigawatts of mostly coal-fired capacity by 2035 — a marked improvement since 2023, when the Australian Energy Market Operator predicted a massive shortfall.
Electricity consumption is forecast to increase from 178 to 229 terawatt-hours over the next decade, driven predominantly by the rapid expansion of data centers, higher industrial capacity, and accelerating business electrification, the report said.
The report comes as officials and investors have cautioned that new wind, solar, batteries and transmission lines aren’t being built fast enough, heightening the risk of shortages and price spikes. Coal still provides most of Australia’s electricity, but the country wants to more than double the share of renewables generation to 82% by 2030.
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