Renewable energy is supplying a record share of the power in Australia’s main energy grid, according to the latest update from the Australian Energy Market Operator (AEMO).
AEMO’s Quarterly Energy Dynamics Report says renewables, including solar and wind, powered 43 percent of Australia’s electricity grid in the first three months of 2025 - the highest first-quarter amount in the National Energy Market’s 25-year history.
It’s good news for Aussies, who resoundingly voted for more renewables at the Federal election just gone, with renewables pushing down wholesale prices by offsetting expensive polluting coal and gas. The impact of the energy shift can also be seen in a 5.1% reduction in total climate pollution for the quarter.
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Grid-scale solar generation grew by 10% year-on-year to new all-time high of 2,386 MW
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Rooftop solar output grew 16% on 2024 to 3,782 MW, a record for Q1
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Wind power generation grew 18% to Q1 high of 3,517 MW
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Battery output surged 86% to an all time high of 98 MW driven by new capacity entering the market
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Energy experts available for comment
Stephanie Bashir, CEO, Nexa Advisory
0402 060 120
Location: Melbourne, Wurundjeri Woi-wurrung and Bunurong Boon Wurrung country
“The AEMO QED report clearly shows that increased market penetration of renewable generation and batteries is having a positive impact on the system dynamics, wholesale prices and emissions reductions. That’s good for power security, reliability, and affordability.
“The record highs in grid-scale solar [increased by 10%] and rooftop solar [grew by 16%], coupled with increased wind [rose by 18%] and batteries [surged by 86%] in Q1 2025 really is a good demonstration that the energy transition is well underway and is unstoppable.
“What we need right now from the majority-led Albanese government is ambition to accelerate this momentum.
“The QED report also highlights the decline in coal availability to new lows in Q1 and renewables, rooftop solar and batteries are doing the heavy lifting. This means we must deliver the clean energy transition on time, otherwise Australian families and businesses will pay needlessly.
“Transmission lines remain the missing link in the transition – we must unblock progress. Regional Australia matters. We cannot shy away from what is needed, we need to ensure we are supporting our regions to reap the benefits and bringing them with us on the journey.
“Do this and we can keep the lights on while getting on with the ultimate objective of becoming a renewable energy superpower.”
Tim Buckley, Director, Climate Energy Finance
0408 102 127
Location: Perth, Whadjuk Nyoongar country
"The AEMO first quarter of 2025 report saw the national electricity market (NEM) benefit from the record high variable renewable energy penetration of 43%, up 4% year-on-year, driving lower average wholesale prices since the peak in mid-2024 despite record high methane gas prices and coal generation costs rising.
“The promising grid stability and pricing benefits of batteries is increasingly playing a material role in time-shifting cheap solar, as minimum on grid demand gains further prominence, challenging previous grid management tools. Fortunately, there is a record 51GW of new wind, solar and battery proposals coming through the approvals process, up 37% year-on-year, which will both accommodate increased electricity demand and cover for looming end of life coal fired power plant retirements."
Johanna Bowyer, Electricity Analyst, IEEFA
0414 643 446 (Amy Leiper, Comms)
Location: Sydney, Gadigal country
“Renewables are carving out a bigger slice of the national electricity market while coal output decreases. Renewables provided 43% of power supply across the NEM in Q1 2025. With rising renewables contribution, we are seeing downward pressure on wholesale prices, with prices zero or negative 18% of the time across the quarter.
“This quarter, wind and solar set the spot price at -$27/MWh and -$26/MWh, while black coal set the price at $84/MWh, hydro at $123/MWh and gas at $151/MWh on average.
“Large-scale wind, solar and batteries set records in terms of their average power output, mostly driven by new wind, solar and battery facilities being installed across the national electricity market.
“Australia’s world leading rollout of rooftop solar is making a huge contribution to the electricity system, with rooftop PV output reaching record Q1 levels in the national electricity market.
“Coal output and emissions fell to record Q1 lows and gas generation fell to the lowest Q1 level since 2004.
“Large-scale batteries are now earning 88% of their revenue through the energy market – buying and storing abundant low-cost renewable power, which they sell back to the market in the evening when prices are higher. They are earning the other 12% of their revenue through frequency control markets, for helping stabilise the grid.
“Upward pressure on wholesale prices was driven by higher demand in some regions and higher priced coal and hydro power compared to this time last year, however higher wind and solar availability and lower market volatility largely offset this upward price pressure.”
