Opinion & Analysis

Digging into NSW’s generation mix reveals that the supply gap from coal exists remains substantial. Eraring currently contributes more to the state’s mix than grid-scale solar and wind combined during winter (28% vs 20%), while utility-scale batteries remain just 1% of the current supply mix, underscoring how early the firming build-out still is. From an investment standpoint, the scheduled retirement of coal capacity represents one of the strongest structural tailwinds in the Australian energy market.

Australia has rapidly become one of the world’s most attractive destination for hyperscale data centres, ranking within the top 5-10 markets globally by capacity. Several factors explain this rise: large land availability within Renewable Energy Zones, fast-growing renewable penetration surpassing 40% across the National Electricity Market, geopolitical stability, Australia’s status as a trusted Five Eyes jurisdiction, and proximity to Asia-Pacific demand centres.

Nearly 20 years after the first perovskite solar cell was created, the efficiency and durability of this small but highly efficient film have attracted attention from industries around the world. Front of the queue is the global defence industry, where rising geopolitical tensions are resulting in record spending by governments to boost capabilities and protect critical systems from attack, whether from natural disasters or more sinister threats like military conflict.

Let’s say you want to encourage more drivers to shift to battery-electric vehicles. What’s the best way to do it?

In the past 12 to 18 months, the NEM’s battery fleet has well and truly crossed the chasm from early adoption to mainstream acceptance, and is slowly becoming a key force in shaping dynamics in the physical market. The build-out is large, the pace of development has been relatively rapid, and — as we saw in AGL and Origin’s half-year results two weeks ago — battery earnings are becoming more of a focal point in company updates and strategy.

Australia leads the world in rooftop solar penetration. More than four million homes now generate power from their own roofs, and battery uptake continues to accelerate nationally. This is a triumph for clean energy, and a global example.

Is the NEM on the cusp of a “Bactrian camel curve” in which small-scale behind-the-meter storage splits the evening peak? Within just six months of Australia’s Cheaper Home Batteries Program, small-scale storage is already at a point where it could be supplying up to half of the output of Australia’s largest coal plant, Eraring, during peak load.

Solcast, a DNV company, reports that most of Australia experienced above-average solar irradiance in January 2026 due to a hot, dry airmass and clear skies, boosting PV generation despite operational challenges from elevated temperatures, bushfire smoke, and dust. In contrast, northern Queensland and far northern regions saw significant irradiance deficits.

Australia is still dragging its feet on decarbonising the economy. Last September, the Albanese government committed to a 62–70% reduction in carbon emissions by 2035 and net zero by 2050. However, only one month later, the government conceded it would fall just shy of its 2030 target and likely miss net zero without significant changes.

Curtailment remains one of the clearest signs of the challenges that face both existing and new solar and wind projects in the NEM. Rising levels of curtailment are increasingly shaping development decisions for both greenfield and brownfield projects across the solar and wind fleet. While interest in ‘hybrid’ projects is growing, they still represent only a small share of current installed capacity.