Renewables break record for share of Australia's main energy supply in December quarter, data reveals
Renewable power reached a record share of Australia's main electricity supply in the December 2024 quarter, with the contribution of coal-fired generation dipping below 50% for the first time, the Australian Energy Market Operator said.
Renewable energy sources accounted for 46% of the overall supply mix in the national energy market (NEM), driving quarterly total emissions and emissions intensity to record low levels.
Higher than average temperatures, including a heatwave across large parts of the country in November, contributed to the highest underlying demand in all mainland NEM regions since at least 2016.
The maximum demand record for a December quarter was reached on 16 December with of 33,716 megawatts (MW), while the average quarterly total demand was 23,737 MW, also a quarter-four record.
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Rooftop solar and grid-scale solar reached new output records, increasing by 18% and 9%, respectively, AEMO said.
'The rise in rooftop solar output, coupled with record low coal-generation availability, resulted in coal-fired generation contributing less than 50% of the NEM's total generation for the first time,' the AEMO executive general manager for reform delivery, Violette Mouchaileh, said.
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'Renewable energy supplied a record 46% of the market's electricity, peaking at 75.6% for a period on 6 November, driving emissions to record low levels.'
Wholesale electricity prices averaged $88 a megawatt hour (MWh) – an 83% increase on quarter four in 2023, but a 26% decrease on the quarter three 2024 average of $119/MWh.
According to AEMO's report, the year-on-year price jump was linked to an increase in coal outages – particularly brown coal, higher overnight demand and transmission constraints.
Black coal-fired generators recorded all-time low availability during Q4 2024, down 6.5%, while brown coal-fired output fell to its lowest level for any quarter, down 304MW (-9.2%) from Q4 2023.
AEMO said these factors contributed to higher overnight prices across the NEM and to 'several high-priced events in NSW and QLD on high demand days'.
'The data confirms what we know – unreliable coal is having a negative impact on energy prices, more renewables in the system bring wholesale prices down, and new transmission infrastructure is critical to keeping prices lower,' climate change and energy minister Chris Bowen said.
'We are building an energy grid so everyone, everywhere has access to the cheapest form of energy at any given time.'
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