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.

Not ready to commit yet?
  • 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 29, 2025
US grid interconnection agreements grew by 33% in 2024, reaching 75GW, with three-quarters signed for solar PV and battery energy storage system (BESS) projects, according to a new report from energy market analyst Wood Mackenzie.
August 28, 2025
Latin America has the potential to unlock billions in clean energy investment if it aligns national policies with global sustainability goals and investor expectations.
August 28, 2025
Venture capital firm Pacific Channel has launched Fund V, which targets 10GW of solar, wind, and energy storage in New Zealand.
August 28, 2025
Developer Pacific Energy has successfully commissioned a 26MW solar-plus-storage site at the Atlas-Campaspe mine in NSW, Australia.
August 27, 2025
The governor of New Jersey, Phil Murphy, has signed a new legislation that seeks to build 3GW of new community solar by 2029.
August 26, 2025
India installed 14.3GW of new utility-scale solar capacity in the first half (H1) of 2025, marking a 49% increase year-on-year.

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