Key facts
- Australia is transitioning from coal to renewable energy sources, driven by government targets and market forces.
- Renewable energy constituted 42.7% of Australia's electricity generation in 2025, with wind and solar being major contributors.
- The battery storage sector has experienced substantial growth, making Australia a global leader in utility-scale battery capacity.
- The government has launched initiatives like the Renewable Energy Target (RET) and the Investment Delivery Authority (IDA) to accelerate clean energy deployment.
- Significant investments are being made in new renewable energy projects, including wind farms, solar PV plants, and battery storage systems.
Australia is accelerating its transition to clean energy, moving away from its historical reliance on coal. The government has set ambitious renewable energy targets, aiming to enhance energy security and support a green transition. This shift is increasingly being driven by market forces, with significant investments flowing into wind, solar, and battery storage technologies.
In 2025, renewable sources accounted for 42.7% of Australia's electricity generation, a notable increase from 38.9% in 2024. Wind power contributed 15.7%, rooftop solar 13.9%, utility-scale solar 7.7%, and hydropower 5.3%. New renewable energy additions reached 5.9 GW in 2025, marking a 28.3% year-on-year rise.
The battery storage industry is experiencing rapid growth, with home battery sales up 260% and large-scale battery capacity increasing by 233% between 2024 and 2025. Australia is now the third-largest global market for utility-scale batteries and a major importer of Chinese batteries. Rooftop solar is also extremely popular, with approximately four million homes equipped with solar panels.
To further expedite this transition, the government has established initiatives such as the Renewable Energy Target (RET) and the Investment Delivery Authority (IDA). The IDA recently endorsed 16 projects in New South Wales valued at $22.1 billion, covering a range of renewable energy and storage solutions. Energy companies and various industries are also actively pursuing decarbonisation and improving energy security, trends expected to continue.