Australia’s Big Bet on Clean Power

Hi everyone,

While many countries are easing into the energy transition with cautious goals and gradual timelines, Australia has taken a more ambitious route. The Australian government has recently committed to sourcing 82 per cent of the nation’s electricity from renewables by 2030. That would mean nearly doubling its current clean energy capacity in just over five years.

If it succeeds, Australia could shift from being one of the most coal-reliant countries in the world to a global leader on grid transformation. This isn’t just a technical challenge, it’s a test of how quickly a country can overhaul an ageing energy system and replace it with something fit for the future.

A Clear Target, Backed by Investment

The 82% target is backed by major expansions of existing investment schemes. This funding is expected to unlock 40 gigawatts of new clean energy capacity by the end of the decade, made up of 26 gigawatts of new wind and solar generation, alongside 14 gigawatts of storage and firming capacity to support grid reliability.

This will be a significant leap for an economy still heavily powered by coal. The scheme is designed to remove financial risk from clean energy projects, helping developers move more quickly. The commitment is there. The challenge now is delivery.

A System Built for Coal

That challenge is made harder by the grid Australia has inherited. As of 2023, fossil fuels still supplied around 65 per cent of the country’s electricity, with coal alone making up nearly half. Much of the coal fleet is nearing retirement, and several plants are already scheduled to close this decade.

Renewables have grown rapidly, reaching around 40 per cent of total generation by 2024. But the system they are feeding into was designed for baseload coal power, not the variable output of wind and solar. It lacks the flexibility needed for a high-renewables future.

Meeting the 2030 target means more than just adding clean power. It requires rethinking how the grid works, from where energy is produced to how it is stored, transmitted and balanced.

Rebuilding the Backbone

Thankfully, Australia has already begun that work. Major transmission upgrades, including the large interconnectors, are being planned to connect Renewable Energy Zones across states. These projects come at a high cost, with the VNI West interconnector alone expected to exceed 11 billion Australian dollars, but they’re essential for unlocking remote renewable resources.

Storage is expanding too. The Waratah Super Battery in New South Wales, currently operating at 350 megawatts, is set to increase to 850 megawatts. Other technologies, such as synchronous condensers and improved forecasting tools are also being deployed to help stabilise the grid.

The aim is not only to replace fossil generation but to build in the resilience and agility needed for a cleaner, more dynamic energy system.

The Human Side of the Transition

This is not just an engineering project. It’s also a social transition.

Much of the new investment is focused on regional areas, where renewable zones overlap with former coal communities. These areas are also being targeted for hydrogen hubs and clean industrial development, with the hope of creating new economic pathways.

But the shift has not been universally welcomed. Some wind projects are facing delays due to cost increases, planning hurdles and local opposition. Concerns around land use, noise and visual impact have all contributed to resistance. According to research by Wood Mackenzie, these bottlenecks could slow progress enough that Australia reaches only 58 per cent renewables by 2030.

That would be a significant shortfall, and a reminder that public support is just as critical as infrastructure.

What Others Can Learn

Very few countries are attempting to transform their electricity systems at this speed. Australia’s mix of public investment, national coordination and private sector involvement offers valuable lessons for other high-emissions economies.

It also reveals key pressure points. A shortfall in grid stability investment, slow deployment of wind projects and policy misalignment between states could all hold back progress. Political ambition and capital are essential, but they are not enough. What matters just as much is the ability to deliver on the ground.

A Test Case for the World

Australia’s 82 per cent renewables target is more than a domestic milestone. It is a test case for the global energy transition.

Can a country with a coal-dependent grid reinvent itself in less than a decade? Can it do so without compromising reliability or public trust?

We are about to find out. If Australia pulls it off, it will not only power its future, it will also show the way for others.

Catch you next week,
James