For the very first time, renewable energy sources have taken the lead in supplying the majority of our power.
As of January 21, 2026, a remarkable shift is occurring in the energy landscape along the eastern seaboard of Australia. In the last quarter of 2025, renewable energy constituted over 50 percent of the electricity mix, breaking through this significant milestone during a season characterized by extreme heat and soaring demand from air-conditioning units.
Recent statistics reveal that during December, renewable energy accounted for an impressive 50.1 percent of the electricity grid on the eastern seaboard. This achievement, reported by the Australian Energy Market Operator, marks a pivotal moment in the country’s progression away from traditional coal-fired power plants toward a more sustainable energy future.
Billions of dollars have been funneled into clean energy and storage initiatives by investors and government entities in Australia, which has propelled the growth of renewables’ share in the power grid compared to the previous year. Fossil fuel usage has also plummeted to its lowest levels ever recorded during this period.
Alison Reeve, director of energy and climate change at the Grattan Institute, emphasized that reaching this record in the December quarter serves as a crucial test for the grid. Just a short while ago, critics were skeptical about whether Australia’s grid could handle such high levels of renewable input, often dismissing the idea as unrealistic.
"I can remember when experts confidently declared that the grid would collapse if it contained more than 20 percent from renewable sources, yet here we are thriving even beyond that," she stated. “This is a practical confirmation of what our models have predicted.”
However, Reeve cautioned that this record does not imply that the grid is fully equipped to function without fossil fuels supporting the intermittent nature of renewable power. Over the entire previous year, including winter months with limited solar energy, renewables averaged around 44 percent of the total electricity supply.
During the heatwave that affected Sydney and Melbourne in early January, when temperatures soared past 40 degrees Celsius, the stability of the grid was fortuitously preserved, as none of the major coal plants were undergoing unexpected shutdowns. Reeve pointed out, "We were fortunate that all coal plants were operational during that heatwave. Had the heat struck just a week earlier, we might have faced significant challenges due to several coal plants being offline."
Fortunately, there was an adequate supply of both coal and renewable energy resources available during those peak demand days. On January 7, when Melbourne experienced extreme temperatures, and again on January 10 in Sydney, the contributions from fossil fuels and renewables were nearly equal, with fossil fuels providing 48 percent and renewables delivering 52 percent of the overall electricity generation.
Additionally, another remarkable achievement took place in the December quarter of 2025, where renewables reached a staggering peak of approximately 78.6 percent of the east coast's electricity mix within a brief half-hour window between 11 a.m. and 11:30 a.m. on October 11.
Over the last decade, the rapid advancement of green energy has been noteworthy, climbing from 20 percent of average annual electricity supply in 2018 to 30 percent by 2021. By 2024, renewables constituted 40 percent of the electricity supply, and in the past year, they surpassed 43 percent.
The Albanese government has set an ambitious target to elevate renewables to 82 percent of the grid by the year 2030. However, the development of renewable projects and the extensive new power lines required to connect them to major urban centers are still lagging behind expert recommendations for achieving the 2030 goal and phasing out the aging coal-fired power infrastructure.
Recently, the closure of Eraring, Australia’s largest coal-fired power station operated by Origin Energy in New South Wales, was postponed by another two years amid concerns that the electrical grid isn’t prepared for its retirement. This delay has sparked frustration among environmental advocates who are calling for quicker and more substantial reductions in greenhouse gas emissions.
The postponement of Eraring's shutdown also highlights a potential political weakness for the Albanese administration, which is under fire for rising energy costs. The government is striving to increase the share of renewables in the energy mix to lower emissions while ensuring stability in electricity supply and consumer prices.
Energy Minister Chris Bowen remarked that these renewable records demonstrate the government’s capability to manage the transition from fossil fuels to cleaner energy sources. "When coal plants malfunction, energy bills rise, and coal plants are increasingly failing. That’s why we’re committed to integrating more renewable sources into the grid, aiming to reduce household costs and enhance the reliability of our energy system for the future," Bowen explained.
Daniel Westerman, CEO of AEMO, pointed out that the record peak generation period has escalated from 54.5 percent in 2021 to an impressive 78.6 percent recently, affirming that the clean energy transition is progressing as planned. "Consumers, industries, and governments are all playing pivotal roles in driving this transformation, which necessitates that coal-fired generation becomes more adaptable to accommodate higher levels of renewable energy," Westerman concluded.
