Australia’s renewable energy sector is rapidly advancing, driven by the plummeting costs of solar and battery technology. BloombergNEF data indicates that Chinese solar module costs fell below US 10c per watt last year, accompanied by sharp declines in battery prices. This affordability is transforming the Australian grid, with multiple large-scale battery projects coming online to harness cheap solar power during peak demand times.
Several significant battery projects are underway, including the 150 MW/300 MWh Ulinda Park near Millmerran in Queensland, with plans for future expansion. In Victoria, two 200 MW/567 MWh battery units at Plumpton form part of the expanding Melbourne Renewable Energy Hub, partly funded by the State Electricity Corporation (SEC). These developments are bolstering record-breaking wind and solar electricity production in Victoria, NSW, and Queensland.
The integration of new batteries is paving the way for round-the-clock renewable energy supply across Australia. Subsidies encourage households to install solar panels and home batteries, vital for Victoria’s ambitious goal of 95% renewable power by 2035. While retail electricity bills remain complex, wholesale power costs are steadily decreasing as more wind, solar, and storage facilities connect to the national grid. Cheaper renewable energy promises to lower costs for power-intensive industries such as data centres and smelters.
South Australia leads the way, frequently meeting 100% of its power needs with renewables. Improved interconnections between states and renewable production areas will further unlock the potential for significant power price reductions. As solar and battery storage costs continue to fall, Australia is poised to embrace a future of abundant, affordable renewable energy, driving electrification of transport and industry while reducing reliance on fossil fuels.
