In the last week of August, coal’s contribution to Australia’s electricity generation fell below 50% for the first time, reaching a record low as renewable energy production surged, market monitor Open-NEM reported.

Coal accounted for 49.1% of electricity, while renewables comprised 48.7%, boosted by storms that increased wind energy output.

Despite being one of the world’s top exporters of coal and gas, Australia has traditionally depended on fossil fuels for electricity. Climate finance expert Tim Buckley noted that the record-low figures in August were influenced by extreme weather and a warm start to spring, which reduced electricity demand by up to 20%.

High winds, exceeding 150 kilometers (93.2 miles) per hour in southeastern Australia, significantly increased wind energy generation.

Buckley remarked that this represents a historic low for coal in the national energy market and indicates a shift towards a future with minimal coal use. He predicted that in just a few years, coal’s contribution could be nearly negligible.

With most of Australia’s 16 coal-fired power stations set to close in the coming years, both the government and industry are rapidly investing in renewable energy.

On Wednesday, the government announced six battery projects to be developed across South Australia and Victoria, aiming to provide 1,000 megawatts of storage by 2027.

Energy Minister Chris Bowen emphasized that the transition to renewable energy is essential, stating, “The climate demands it, and economic reality demands it.” He stressed the importance of implementing practical solutions immediately rather than delaying for a decade or more to ensure Australia meets its energy needs.

Buckley pointed out that while investment in renewable energy in Australia is increasing, it still falls behind other nations. “China has surpassed Australia in renewables, investing nearly a trillion Australian dollars ($671 billion) annually in clean technology. China is adding as much new renewable capacity in a week as Australia does in a year,” he noted.

Last week, Australia’s energy regulator cautioned that ongoing investments in the renewable energy sector are crucial to prevent blackouts in the coming decades, as demand is expected to rise significantly.

In the 2022-2023 period, fossil fuels made up 91% of Australia’s total energy consumption, a broader measure that includes fuels used in transportation and industry.

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