Opinion & Analysis

With data centre demand creating new challenges for network operators, Schneider Electric’s Farokh Ghadially outlines why the next phase of the transition isn’t just about adding more renewables, but managing a system that is more distributed, more data-heavy and less predictable.

Q4 2025 in South Australia saw grid-connected loads with spot price exposure actually being paid to use electricity about half the time (46%) – and that electricity was overwhelmingly (80%) supplied by renewables. This demonstrates a shift from managing demand to quietly needing it. Particularly in regions like South Australia, there is growing demand for demand.

Solcast, a DNV company, reports that March in Australia was unusually wet and disrupted, with frequent tropical cyclones, polar air intrusions, and repeated low-pressure systems causing widespread cloud, storms, and record cold in the southeast. Solar irradiance was mixed: below average in the south due to persistent cloud and storms, but near or above average on some northern and coastal regions where breaks between systems allowed recovery.

With a volatile global fuel and energy crisis continuing relentlessly, Australia holds a quiet but powerful advantage that provides cost-of-living energy relief to millions by allowing our cars and homes to run on sunshine instead of fossil fuels.

Grid-forming inverters represent a critical technology transition for the Australian National Electricity Market as the grid moves toward 100% renewable sources. With 10 operational grid-forming battery energy storage systems totaling approximately 1,070 MW and 94 projects in the pipeline, Australia is emerging as a global leader in grid-forming deployment.

As utility-scale battery energy storage systems continue to be deployed across Australia’s National Electricity Market, fire risk assessment is rapidly shifting from a compliance exercise to a core project viability consideration. For developers, asset owners, insurance considerations and regulators, the key question is no longer whether systems meet component certification standards, but how complete BESS systems behave under severe real-world conditions.

For decades, copper was the material the solar industry knew it needed but could not manufacture at scale. That barrier has been lifted. What follows matters for every rooftop, every supply chain, and every gigawatt the energy transition still requires.

As Australia accelerates its shift toward renewable energy, attention has largely focused on generation – scaling solar, deploying storage, and integrating distributed energy resources. But a quieter constraint is emerging beneath this transformation: the grid’s limited ability to see its own condition in real time.

Most of Australia’s existing homes are old, uncomfortable, and expensive to run. Too many are energy inefficient, and rising electricity and gas prices are making things worse. Mainstream programs are supporting home energy upgrades but the transition isn’t happening quickly enough and risks leaving behind the households that could benefit most. New research shows how local initiatives can make solar and electrification more accessible.

The war on Iran has made crystal clear how shaky our reliance on fossil fuels is. It’s no surprise electric vehicles and transport have become more appealing. In Australia, sales of electric vehicles surged 40–50% in March.