Renewable Energy in Australia: Consumption and Challenges

Renewable energy in Australia is changing the face of the country’s power sector. It is shifting away from decades of coal dependence and embracing solar and wind power. Australia is rapidly increasing its clean energy capacity thanks to plentiful sunshine and strong winds, which are helping to build a more reliable and affordable electricity system.

This article reveals Australia’s energy plan, supply, and consumption. To learn more, read the article until the end.

Energy Consumption in Australia

Australia is one of the largest countries on Earth, located between the Indian and Pacific oceans in the Southern Hemisphere. The nation has undergone a significant energy system transformation since the 1950s, driven by environmental, engineering, and economic factors.

During 2023–2024, the energy consumption in Australia rose 0.5% to 5,977 petajoules, according to the Department of Climate Change, Energy, the Environment and Water. Furthermore, in 2024, Australia consumed 1,672 TWh of energy (electricity, heating, and transportation), increasing from 2023’s energy consumption of 1,657 TWh.

Moreover, the total electricity generated across all regions reached 286.34 TWh in 2025, according to Our World in Data. The electricity generation trend has generally increased since 1985.

Where Does Australia’s Energy Supply Come From?

Australia mainly uses two energy sources: Non-renewables and renewables. Most of the nation's electricity comes from coal energy. Fossil fuels, such as oil, coal, and gas, remain the major players in Australia’s energy mix.

Our World in Data noted that in 2024, Australia consumed 620.48 TWh of oil, 422.99 TWh of coal, and 369.92 TWh of gas. However, non-renewables emit greenhouse gas emissions and contribute to environmental pollution. Therefore, Australians are redefining their energy supply and beginning to see renewables as energy solutions.

Renewables, particularly wind and solar energy, have recently become the cheapest forms of new electricity generation. The share of renewable energy consumption in 2024 increased to 7.39% for solar, 4.82% for wind energy, and 1.89% for hydropower, compared with 2023, which ranged from 2% to 6.6%.

Fossil fuel consumption in Australia also declined over time, despite still being the most used energy source compared to renewable energy. The non-renewable energy consumption was steady at 94% to 96% (1965–2009). However, in 2024, the share of primary energy consumption from fossil fuels dropped to 85.27%, continuously declining since 2010.

Renewable Energy Plan and Trend in Australia

Renewable energy in Australia has undergone a significant increase in recent years. Australia’s sunshine intensity and stability make it ideal for solar energy. There are also regular, powerful winds in several parts of Australia. Thus, the nation can produce a lot of energy using its sunshine, wind, and large terrain.

Currently, Australia is working on an energy transition to provide a more reliable energy system and ensure affordable electricity. The transition is expected to secure electricity supply once coal power stations close, switch to wind and solar power, and reduce harmful emissions from the energy system.

The effort is also supported by the Australian government's Powering Australia plan. This plan targets reducing pressure on energy bills, creating jobs, and lowering emissions by leveraging renewable energy.

The government set goals to reduce emissions by 43% by 2030 and reach net zero by 2050 in 2022. In September 2025, the government announced it would reduce emissions by 62% to 70% by 2035 compared to 2005 levels.

Regarding renewable energy use in Australia, the Clean Energy Council mentioned in the Clean Energy Australia 2026 Report that Australia’s electricity generation from renewable energy reached 42.7% from 38.9% in 2024. The installations increased 28.3% YoY to 5.9 GW.

This figure marks encouraging progress in Australia's clean energy transition. However, the implementation may not always be sleek. The Clean Energy Council pointed out some of the constraints holding Australia back from transitioning, such as:

Regulatory bottlenecks, rising inflation, prolonged phase-out of coal stations, and slow transmission delivery undermined investment confidence.
Delaying generation projects and weakening investment signals.
Inconsistent and complicated planning systems.
Challenging community support.
Uncoordinated consumer energy resources.
Participation and access gaps.
End-of-life (EOL) solar panels.
Skill challenges.

Therefore, Australia must make moves to tackle those obstacles and deliver the energy transition seamlessly. Here are some of the strategies:

Boosting connection, transmission, and skills.
Raising investment confidence.
Building community trust.
Integrating consumer energy resources.
Securing Australia’s economic opportunity.

Australia’s renewable energy journey is an example of how innovation and investment are transforming the nation’s energy landscape. From solar and wind to emerging technologies, the country is gradually building a wide range of technologies that improve both sustainability and resilience.

Cutting carbon emissions is not optional in the fight against global warming. Reducing carbon emissions remains a global priority, and Australia's experience offers a case study other countries can all learn from.

Australia has already made meaningful steps on this mission and shows progress is possible. It is time now to follow suit and continue advancing the transition toward a more sustainable future for generations.