Renewables Set to Power 73% of Australia’s Electricity by 2035 — GlobalData 

Australia’s power sector is on track for a major transformation, with renewable energy projected to supply 73.3% of total electricity generation by 2035, according to new analysis from GlobalData, a leading data and analytics firm.

The company’s latest report, “Australia Power Market Trends and Analysis by Capacity, Generation, Transmission, Distribution, Regulations, Key Players and Forecast to 2035,” shows that renewables will also dominate the nation’s installed capacity, accounting for 77.8% by 2035. This marks a sharp rise from 48% of capacity and 31.6% of generation in 2024, when thermal power still represented 44% of capacity and 63.4% of generation.

According to Mohammed Ziauddin, Power Analyst at GlobalData, Australia’s clean energy progress is being propelled by a combination of robust policy support, abundant natural resources, and strong investment momentum.

“Australia’s energy transition is being supported by policies such as the Renewable Energy Target (RET), the Capacity Investment Scheme (CIS), and the Rewiring the Nation initiative, alongside state-level renewable targets,” Ziauddin said. “These measures, coupled with strong rooftop solar adoption and large-scale wind and solar development, are driving record growth in renewable capacity additions.”

Despite the strong outlook, the report warns that Australia faces significant hurdles in meeting its target of 82% renewable electricity by 2030. Key obstacles include grid connection delays, lengthy permitting processes, and community pushback against new transmission projects. The country also struggles with insufficient storage and firming capacity to manage excess solar generation, leading to congestion and curtailment in some regions.

Transmission bottlenecks and uncertainty over grid planning have further delayed the retirement of coal-fired power plants, threatening progress toward the 2030 goal.

To achieve its net-zero emissions target by 2050, the Australian government is banking on flagship initiatives such as the Solar Sunshot program, Hydrogen Headstart, and the Critical Minerals Production Tax Credit, designed to boost investment in solar PV, hydrogen, and battery storage. The Rewiring the Nation and Capacity Investment Scheme programs remain central to expanding grid infrastructure and ensuring renewable projects can deliver reliable power.

GlobalData’s report identifies solar PV as the country’s dominant renewable technology, buoyed by rapid rooftop adoption. By mid-2025, Australia is expected to host over 4.16 million PV systems, with around 300,000 new installations added each year. Wind energy, both onshore and offshore, is also growing rapidly, driven by the development of Renewable Energy Zones (REZs) across multiple states.

Ziauddin concludes that Australia’s energy transition, while ambitious, is achievable with continued government coordination and investment.

“The power sector is undergoing a major transformation, balancing coal retirements with renewable build-out and grid upgrades,” he said. “Sustained policy alignment, faster infrastructure delivery, and increased investment in storage and transmission will be crucial to maintaining clean energy momentum through 2035 and beyond.”