Australia's Renewables Surpass Fossil Fuels for First Time

Australia just passed a milestone decades in the making. In the final three months of 2025, renewable energy supplied more electricity than fossil fuels across the country for the first time in a full quarter.

The shift happened even as Australians used more power than ever before. Average electricity demand hit a record high of 24,271 megawatts, driven by heating and cooling needs, population growth, and new data centers.

But here's the remarkable part: rooftop solar panels on millions of homes met most of that extra demand. Those panels alone supplied an average of 4,407 megawatts during the quarter, and at one point provided 61% of the grid's power.

The renewable surge included a 29% jump in wind power and a 15% increase in large solar farms. Battery storage nearly tripled as massive new systems came online to store sunshine for evening use.

Meanwhile, coal generation fell to its lowest quarterly average ever. Gas power dropped to levels not seen since 2000, as cleaner sources stepped in to meet Australia's needs.

The Australian Energy Market Operator confirmed renewables delivered 51% of total supply, compared to just 46% in the same period a year earlier. Violette Mouchaileh, the agency's executive general manager, called it "a landmark moment" and "a turning point in Australia's energy transition."

The Ripple Effect

The renewable boom did more than cut emissions. It slashed electricity costs across the board.

Wholesale power prices tumbled 44% to just $50 per megawatt hour. Queensland saw the biggest drop at 55%, while South Australia and Victoria enjoyed the lowest prices at $37 per megawatt hour.

The clean energy supply also reduced price volatility. High-priced intervals that typically spike costs "added only $3 per megawatt hour" to quarterly averages, thanks to batteries discharging power during evening peaks when demand surges.

Less reliance on expensive gas and coal plants meant sustained downward pressure on costs. Years of investment in wind, solar, and storage are now paying off for households and businesses alike.

Challenges remain, of course. The grid still needs traditional generators for stability during certain conditions, and transmission lines sometimes can't move all the renewable power where it's needed. But those are growing pains in a system rapidly transforming.

Australia's energy transformation shows what's possible when technology, investment, and natural resources align to build something better.