Renewables to account for 73.3% of Australia’s power generation by 2035

Renewables are forecast to account for 73.3% of the country’s total power generation by 2035, according to GlobalData, a leading data and analytics company.

GlobalData’s latest report, ‘Australia Power Market Trends and Analysis by Capacity, Generation, Transmission, Distribution, Regulations, Key Players and Forecast to 2035,’ reveals that renewables will also dominate Australia’s capacity mix, reaching 77.8% by 2035. This marks a significant shift from 2024, when renewables accounted for 48% of installed capacity and 31.6% of generation, while thermal power represented 44% of capacity and 63.4% of generation.

Mohammed Ziauddin, Power Analyst at GlobalData, commented: “Australia’s energy transition is being supported by policies such as the Renewable Energy Target (RET), the Capacity Investment Scheme (CIS), and the Rewiring the Nation initiative, alongside state-level renewable targets. These measures, coupled with strong rooftop solar adoption and large scale wind and solar development, are driving record growth in renewable capacity additions.”

However, Australia faces increasing challenges in achieving its 82% renewable electricity target by 2030. Grid connection delays, permitting bottlenecks, and community resistance to new transmission infrastructure are slowing the pace of large scale renewable rollout. Insufficient firming and storage capacity to integrate rising rooftop solar generation has also led to congestion and curtailment risks in several regions. Moreover, transmission constraints and planning uncertainty have delayed the retirement of some coal assets, putting further pressure on the 2030 target.

Australia aims to achieve net-zero emissions by 2050, supported by major initiatives such as the Solar Sunshot programme, Hydrogen Headstart, and the Critical Minerals Production Tax Credit, which are promoting investment in solar photovoltaics (PV), hydrogen, and battery storage. The government’s Rewiring the Nation and Capacity Investment Scheme remains central to ensuring renewable projects can connect efficiently and deliver firm, reliable power.

The report highlights that solar PV will remain the leading renewable technology, supported by high penetration rates, with more than 4.16 million PV systems installed across all segments by mid-2025 and annual additions of nearly 0.3 million new rooftop systems. Wind power, both onshore and offshore, is also expanding rapidly, particularly across designated Renewable Energy Zones that are driving regional investment and grid diversification.

Mohammed Ziauddin concluded: “Australia’s power sector is undergoing a major transition, balancing coal retirements with rapid renewable build-out and grid upgrades. While the 2030 target remains highly ambitious, continued policy alignment, accelerated infrastructure delivery, and greater investment in firming and transmission will be critical to sustaining the country’s clean energy momentum through 2035 and beyond.”

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Read the article online at: https://www.energyglobal.com/wind/07112025/renewables-to-account-for-733-of-australias-power-generation-by-2035/