Clean Energy Rises as Coal Power Fades in Latest National Report

Australia’s energy landscape is shifting fast, with renewables taking center stage as coal continues to fall back, according to the latest Quarterly Energy Dynamics report from the Australian Energy Market Operator (AEMO).

During the first quarter of 2025, grid-scale solar production jumped by 10%, while battery output exploded by 86%, hitting new record highs. Rooftop solar and wind generation also broke Q1 records with 16% and 18% growth respectively—clear indicators that clean energy is rapidly expanding its footprint.

At the same time, black and brown coal-fired generators saw their availability drop to fresh lows. AEMO’s Violette Mouchaileh emphasized that while renewable and battery contributions are climbing, coal's decline is reshaping the grid. Emissions dropped 5.1% year-on-year thanks to the reduced coal and gas use.

Despite underlying demand in the National Electricity Market (NEM) hitting a new record of 25,162MW, operational demand dipped slightly—thanks largely to mild weather in parts of New South Wales and Queensland. Interestingly, Queensland reached a new peak demand of 11,144MW in January, while Victoria and NSW hit record low minimum operational demands due to strong rooftop solar output.

Average wholesale prices in the NEM rose slightly to $83/MWh, though mainland prices dipped to $76/MWh. Coal and hydro costs edged higher, but renewables helped keep price volatility in check. Negative pricing became more common, especially in northern regions, as wind and solar took the lead in setting prices.

In the gas market, prices hit a new Q1 record at $13.26/GJ, even as demand dipped by 2% compared to Q1 2024. Reduced exports and lower gas-fired power generation contributed to this drop. Meanwhile, Western Australia saw its own green surge, with renewable contributions hitting 41.6% and battery generation soaring 261%.

Coal output in WA fell 4.6% after a major unit retirement, while hybrid solar-battery setups like Cunderdin added to the mix. Rooftop solar grew to make up over 20% of the supply. These shifts helped slash emissions intensity by 5.7%, even as energy prices in WA climbed to $89.03/MWh.

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