![\"NEM](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/01\/NEM-sources-of-electricity-generation.png\")
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Source: Open Electricity<\/p>\n
Western Australia, which operates outside the NEM through its South West Interconnected System (SWIS), beat the eastern states in the race to the milestone. Renewables made up an average 50.7% of electricity generation in the December quarter, giving WA bragging rights as the first major Australian grid to exceed 50% renewable electricity generation over a quarter.<\/p>\n
![\"SWIS](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/01\/SWIS-sources-of-electricity-generation.png\")
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Source: Open Electricity<\/p>\n
Bowen targets possible but long-shot<\/p>\n
Tim Buckley, director of Climate Energy Finance<\/a>, said the December quarter marked a turning point for Australia\u2019s energy system.\u00a0<\/p>\n \u201cThis is the first time Australia has generated more than 50% of its electricity nationally from renewables in a quarter,\u201d he said, describing it as clear evidence the country was \u201cmaking strong progress\u201d towards the federal government\u2019s clean energy targets.<\/p>\n The surge in renewables comes as climate and energy minister Chris Bowen pushes towards Labor\u2019s goal of reaching 82% renewable electricity by 2030<\/a>, a target he has described as \u201cambitious and achievable\u201d.\u00a0<\/p>\n Buckley agreed the task would be challenging but said the latest figures showed the goal remained within reach.<\/p>\n \u201cThe fourth quarter of 2025 shows we\u2019ve already made significant progress,\u201d Buckley said. \u201cBut we need an acceleration and expansion of investment to deliver the 82% target. <\/p>\n \u201cThe good news is that wind, solar and battery projects can be built quickly. The real obstacles over the past five years have been planning approvals and grid connection issues, and we\u2019re finally seeing signs that those barriers are being addressed.\u201d<\/p>\n Power bills to fall<\/p>\n The rapid expansion of renewables is also reshaping electricity prices. Average wholesale power prices across the NEM fell 48% year-on-year in the December quarter to A$68 per megawatt hour, among the lowest levels in the world. Across the full year, wholesale prices averaged A$108\/MWh, an 18% fall compared with 2024.<\/p>\n Buckley said the link between rising renewable generation and falling prices was now unmistakable. \u201cThe correlation between high renewables and lower electricity prices is more than a coincidence,\u201d he said, pushing back against claims that clean energy was driving price rises. \u201cThe clear driver of hyper-inflated energy prices over the last three years has been record-high fossil fuel prices.\u201d<\/p>\n Gas continues to shrink<\/p>\n According to Buckley, Australia\u2019s exposure to volatile global gas and coal markets, despite being one of the world\u2019s largest fossil fuel exporters, had left households vulnerable. \u201cThat reflects years of regulatory capture by fossil fuel vested interests,\u201d he said. \u201cThe solution to high energy prices is building rapidly, and it\u2019s building renewable energy capacity at scale.\u201d<\/p>\n Gas\u2019s role in the power system continues to shrink. In the December quarter, gas accounted for a record low 2.9% of electricity generation in the NEM.\u00a0<\/p>\n Buckley said the data showed fossil fuels were losing their dominance. <\/p>\n This is a landmark moment where fossil fuel generation fell below 50% for an entire quarter for the first time in Australia<\/p>\n \u201cIt proves we are making strong progress towards electrification and decarbonisation.\u201d<\/p>\n More investment needed<\/p>\n Investment remains the critical constraint. Buckley said Australia needed a far faster build out of both renewable generation and energy storage, at household and utility scale. While rooftop solar and home batteries were booming, supported by the federal government\u2019s Cheaper Home Battery Program<\/a>, utility-scale wind and solar had been held back by slow approvals.<\/p>\n \u201cAustralia leads the world per capita in rooftop solar and behind the meter batteries, and that leadership has accelerated in the last six months,\u201d Buckley said. \u201cWhat we now need is the same urgency applied to utility scale wind, solar and battery storage.\u201d<\/p>\n He pointed to major progress in battery energy storage systems in 2025, which he said was transforming the economics of renewables by allowing cheap solar energy generated during the day to be stored and used during evening peak demand. Australia is now the third largest market<\/a> globally for battery storage installations, behind China and the United States.<\/p>\n \u201cIf we can build replacement capacity at the speed and scale required,\u201d Buckley said, \u201cthese investments will permanently reduce energy price inflation and that\u2019s something the Australian public needs to understand.\u201d<\/p>\n
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