AEMO Quarterly Report: Renewable energy reaches record highs as coal declines in the NEM
Renewable energy reached record highs in the National Electricity Market during the December quarter, while coal generation declined, and new energy projects continued to progress, strengthening Australia’s transition to cleaner power.
The National Electricity Market (NEM) saw renewable energy contributions reach record levels in the December quarter, while coal-fired generation fell below 50% of total supply for the first time. The transition towards cleaner energy sources continued with new solar, wind, and battery projects coming online, contributing to a growing share of renewable electricity in the grid.
AEMO's Quarterly Energy Dynamics report for Q4 2024 revealed that renewable energy supplied 46% of the market’s electricity, peaking at 75.6% on 6 November. Rooftop solar and grid-scale solar output set new records, increasing by 18% and 9%, respectively. This growth led to minimum demand records across several states, reinforcing the shift towards decentralised energy generation.
“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,” said AEMO Executive General Manager - Reform Delivery, Violette Mouchaileh.
Momentum in renewable energy projects remained strong, with 20 new projects (4.9 GW) gaining application approval in the December quarter, 11 projects (1.7 GW) registered, and four projects (0.6 GW) reaching full output. Over the last six months, project registrations totalled 5.2 GW, more than double those recorded in the previous 12 months.
AEMO Onboarding & Connections Group Manager Margarida Pimentel noted, “Project registrations in the last six months are more than double those in the previous 12 months. This surge reflects the wave of application approvals in 2023.”
Battery storage projects also saw rapid growth, with 18.1 GW in the connections pipeline—nearly doubling from 9.2 GW in progress at the same time last year. New South Wales accounted for 36% of the capacity in development, followed by Queensland (32%), Victoria (21%), and South Australia (10%).
While renewable energy saw record highs, wholesale electricity prices averaged $88/MWh in Q4 2024, up 83% from Q4 2023 due to high demand and reduced coal generation availability. New South Wales and Queensland experienced the highest quarterly prices at $143/MWh and $127/MWh, respectively, while Victoria recorded the lowest at $45/MWh.
New transmission projects, including VNI West, Project EnergyConnect, and HumeLink, are expected to improve the distribution of lower-cost renewable energy across the NEM, reducing reliance on coal and gas generation in the future.
