The opinions expressed here are those of the author, a columnist for Reuters.
By Gavin Maguire
LITTLETON, Colorado, Nov 6 (Reuters) - Australian utilities generated more electricity from clean power sources than from fossil fuels for the first time ever last month, marking a major energy transition milestone for one of the world's top coal and gas exporters.
Utility-supplied electricity output from clean power sources hit 9.88 terawatt hours (TWh) in October, data from energy think tank Ember shows, which exceeded the 9.82 TWh generated by all fossil fuels.
The energy mix breakthrough is due to a 77% surge in Australia's clean power output from five years ago, as well as a 15% reduction in fossil fuel use over that period.
Generation of coal-fired power - which remains Australia's largest electricity source - also hit record lows last month, helping to slash power sector carbon dioxide emissions so far this year by 13.5 million metric tons compared to a year ago.
Australia's clean generation levels look set to keep climbing over the southern hemisphere summer, which may help cement 2025 as a critical threshold when clean energy output Down Under first surpasses fossil fuels in the utility mix.
CLEAN POWER MOMENTUM GROWS
The main driver of Australia's clean power surge has been a 99% increase in clean power generation capacity between 2019 and 2024, from 32 gigawatts (GW) to 63.5 GW, Ember data shows.
That capacity climb compares to a 65% rise in clean capacity globally over the same period, and has set the stage for rapid growth in Australian clean electricity flows so far this decade.
Since 2020, Australian utility-supplied clean electricity generation has grown by an average of around 13% a year, which is more than double the global average over that period.
That outsized growth pace has allowed Australia to make up ground on peer nations in terms of the share of clean power in electricity production, as Australia had been a notable energy transition laggard until a decade ago.
In 2015, only 14% of Australia's electricity supplies came from clean sources, which was less than half the global average of 33.5% and also well below the Asia-wide average of 24%.
As of the end of 2024, however, Australia's clean share had leapfrogged the Asian average of 34% to register a 35.1% share, and narrowed the gap on the global average of 41%.
SOLAR POWERED, BATTERY BACKED
Massive utility-scale solar farms have been the main source of Australia's clean electricity growth this decade, with solar electricity output expanding by an average annual clip of 21%.
That solar growth pace handily exceeded the 13% annual growth in wind power output, and helped solar emerge as Australia's second-largest electricity source behind coal.
Rapid growth in utility-scale battery energy storage systems (BESS) has helped utilities harness the country's solar output to good effect, as the country ranks third globally in terms of BESS capacity, according to consultancy Rystad Energy.
The solar plus battery combination allows utilities to store surplus solar power output during the sunniest parts of the day, and then dispatch that power when electricity consumption peaks in the early evenings.
COAL CUTS
Australian utilities have amplified the impact of rapid clean generation growth by simultaneously lowering fossil fuel generation.
From a roughly 78% share of the utility generation mix in 2019, fossil fuels are on track to account for less than 60% of Australia's utility-supplied electricity for the first time in 2025.
Deep cuts have been made to both coal and gas-fired power production since 2019 to accomplish this, with coal-fired output dropping by 16%, gas-fired output by 36% and total fossil fuel-fired production falling by 19% over that time span.
Coal's share of the utility generation mix - which had solidly held above 70% until 2019 - looks set to fall well below 50% over the coming months as the peak season for solar kicks in.
In October, only 44% of Australia's electricity came from coal plants.
But that generation share looks set to plumb fresh lows through December as solar farms and battery systems crank up to their annual generation highs and allow utilities to curb generation from fossil fuel plants to minimal levels.
That means that clean power sources will continue to set new records in terms of the share of the utility electricity mix for the next few months, further accelerating Australia's energy transition momentum heading into 2026.
The opinions expressed here are those of the author, a columnist for Reuters.
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Clean breakthrough: Australian utility-supplied clean power exceeds fossil fuels for the first time https://tmsnrt.rs/3WGEP8Y [https://tmsnrt.rs/3WGEP8Y]
Australia's electricity generation by source during January to October https://tmsnrt.rs/4otMIuK [https://tmsnrt.rs/4otMIuK]
From laggard to leader? Australia narrows gap on clean generation share https://tmsnrt.rs/47IYXwr [https://tmsnrt.rs/47IYXwr]
Australia's coal-fired electricity generation slides to record lows https://tmsnrt.rs/4oTeH6T [https://tmsnrt.rs/4oTeH6T]
(Reporting by Gavin Maguire; Editing by Christian Schmollinger)
((gavin.maguire@thomsonreuters.com [gavin.maguire@thomsonreuters.com]; +720 295 6101;))
