Distributed, large-scale solar support Australia’s grid as 4.3GW of new renewable capacity added

Facebook
Twitter
LinkedIn
Reddit
Email
Image: Carnegie Clean Energy.

The rapid development of distributed and large-scale solar has resulted in an improved reliability outlook for the majority of Australia as it prepares to enter summer.

That is according to the Australian Energy Market Operator (AEMO), which also predicts declines in daytime minimum operational demand levels in the country, as a result of the continued uptake of rooftop PV.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The findings are from AEMO’s 2020 Electricity Statement of Opportunities (ESOO), a new report published today that forecasts electricity supply reliability in the National Electricity Market (NEM) – comprised of Queensland, New South Wales, Victoria, South Australia and Tasmania – over the next ten years.

“It is great to see how industry’s investment in new resources improves the reliability outlook for this summer,” said AEMO CEO Audrey Zibelman, noting that an additional 4.3GW of new variable renewable energy capacity will be operational this summer compared with the same period last year.

According to AEMO, reliability and resilience risks identified during high demand periods, coupled with declining plant reliability and forecast plant closures, prove “the need for timely commissioning of new generation, storage and transmission investment”.

As a result of the strong uptake of rooftop solar, the ESOO forecasts that by 2025 all NEM regions are expected to experience minimum operational demand in the daytime, not overnight. Expected reductions are most evident in Victoria and South Australia.

“With minimum demand carved out during the day, there’s an opportunity for innovative solutions and technologies to enter the market, and utility-scale energy storage is likely to become increasingly important for daily operation,” Zibelman said.  

Findings from the ESOO were welcomed by the Climate Council, Australia’s climate change communications organisation. “This report shows that renewables, backed by storage and good management, are more than capable of providing power to Australians,” said Tim Baxter, a senior researcher at the organisation. 

“States and territories must accelerate their plans to replace their ageing and increasingly unreliable coal power stations with renewable energy,” he added.

The AEMO has forecast that more than 26GW of variable renewable energy will be needed to replace coal-fired generation in Australia, with nearly two-thirds (63%) set to retire by 2040. In its 2020 Integrated System Plan, the market operator said the quantity of distributed energy generation connected to Australia’s grid will double or even triple by 2040, providing up to 22% of total underlying energy consumption in the country.

Read Next

August 7, 2025
US residential solar installer Sunrun says it has positioned itself to continue generating strong financial returns after the passing of the 'One Big, Beautiful Bill'.
Premium
August 7, 2025
July 2025, the peak of the Australian winter season, saw generation from utility-scale and rooftop solar increase by 12.78% year-on-year in the National Electricity Market (NEM).
August 5, 2025
Residential solar installations will slow in the US over the coming years, though long-term installations will remain significant, according to new research from energy analyst Wood Mackenzie.
August 4, 2025
Australia’s Productivity Commission said the country should phase out subsidies for renewables and replace them with market-based incentives.
August 1, 2025
Western Australia network operator Western Power has confirmed it has granted two more network connection offers to two new large-scale renewable energy projects, bringing its total for 2024/25 to 759MW.
August 1, 2025
Dutch pension fund APG has agreed to provide Octopus Australia with AU$1 billion to support its solar, wind, and BESS portfolio.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines