Lesson’s from a record breaking summer
A Summer of Records: Australia’s Renewable Energy Milestones and the Role of Battery Storage
This article draws on insights from Giles Parkinson’s piece, A Summer of Record Renewables, Record Demand Highs and Record Demand Lows, and No Blackouts, published in RenewEconomy on March 4, 2025. Parkinson’s analysis sheds light on the record-breaking summer that saw Australia’s electricity grid experience unprecedented highs and lows in demand, alongside a surge in renewable energy penetration.
Australia’s electricity grid has just experienced a summer like no other—one defined by record-breaking highs and lows across the energy landscape. Renewable energy penetration soared to new levels, peaking at an average of 44.7 per cent for the season (Parkinson, 2025). At the same time, demand reached unprecedented highs, and in a surprising contrast, record lows. Despite all this, the grid remained stable, a testament to the increasing role of battery storage and the evolving energy mix.
A Season of Unprecedented Records
The Australian Energy Market Operator (AEMO) has confirmed that the past summer saw an array of new records (Parkinson, 2025). Peak demand in Western Australia hit 4,486 MW on January 20, while Queensland recorded its highest-ever demand at 11,144 MW on January 22. Meanwhile, New South Wales experienced an all-time minimum operating demand of just 2,728 MW on February 16, highlighting the impact of distributed rooftop solar generation (Parkinson, 2025).
Australia’s renewable share for the summer reached an all-time high of 44.7 per cent, an extraordinary leap from just 24.1 per cent five years ago in 2019/20 (Parkinson, 2025). While this figure is slightly lower than the 46 per cent recorded in spring (a season that typically enjoys lower demand due to mild temperatures), it underscores the continuing shift towards a greener grid.
The Reliability of Renewables and Storage
Despite ageing fossil fuel infrastructure and persistent predictions of blackouts from sceptics, the lights stayed on (Parkinson, 2025). The key factor? Battery storage. Large-scale batteries proved their worth in stabilising the grid, helping manage both surging demand and the steep supply drops during low-demand periods.
This summer marked a turning point for the deployment of battery technology, with AEMO issuing its first-ever directions for large batteries to remain on standby in anticipation of minimum demand levels reaching problematic lows (Parkinson, 2025). The Waratah Super Battery, one of the largest of its kind, was commissioned and played a crucial role in maintaining grid stability (Parkinson, 2025). In Western Australia, the Collie and Kwinana batteries absorbed surplus solar energy during the day, ensuring that power could be reinjected into the system when evening demand surged (Parkinson, 2025).
The Role of Hydro and Market Challenges
Battery storage was not the only player keeping the grid running. Hydropower also played a key role, ramping up during peak demand periods to complement coal and gas in balancing supply (Parkinson, 2025). According to Geoff Eldridge of GPE NEMLog, hydro’s peak share hit 11.2 per cent over the summer, underscoring its importance in a grid transitioning away from fossil fuels (Parkinson, 2025).
However, the growing reliance on renewables also brought to light significant market challenges. The curtailment of wind and solar reached 8 per cent over the season, with Victoria and South Australia the most affected due to negative pricing and limited transmission capacity (Parkinson, 2025). In South Australia, a state known for its leadership in renewable integration, wind and solar accounted for an impressive 74.6 per cent of native demand. However, curtailment limited the full potential of renewable energy, with as much as 10 per cent of clean power going unused at times (Parkinson, 2025).
Eldridge highlights the need for greater flexibility in the system, particularly through firming technologies, enhanced storage, and improved interconnection between states (Parkinson, 2025). The issue of excess renewable generation during solar hours (9 AM to 5 PM) remains a challenge, with South Australia having the capacity to meet 100 per cent of its demand with renewables, yet unable to fully utilise its generation potential due to constraints in storage and export infrastructure (Parkinson, 2025).
The Economic and Policy Implications
The divide between renewable-heavy states and those still reliant on coal was starkly evident in electricity prices. Victoria recorded the lowest daily average wholesale price at $56/MWh, with South Australia close behind at $66/MWh. In contrast, the coal-dependent states of Queensland and New South Wales saw much higher prices, at $108/MWh and $103/MWh respectively (Parkinson, 2025). This price disparity underscores the economic advantage of renewables in driving down costs, provided that storage and transmission infrastructure can keep pace.
Australia’s broader energy transition is now at a critical juncture. The nation has set an ambitious target of achieving 82 per cent renewable energy by 2030 (Parkinson, 2025). However, the success of this goal will depend on the pace of new wind, solar, and storage projects, as well as the expansion of grid infrastructure. The upcoming federal election, expected within the next two months, could have a significant impact on this trajectory. Policy decisions regarding investment in renewables, grid modernisation, and coal phase-out timelines will be crucial in determining the future energy landscape (Parkinson, 2025).
The Bottom Line
This summer has demonstrated that Australia’s power grid is evolving rapidly, driven by the increasing dominance of renewables and the growing importance of storage solutions (Parkinson, 2025). The role of batteries has been pivotal in ensuring stability, and as technology advances and more storage capacity comes online, their impact will only become more pronounced.
However, challenges remain. Curtailment of renewable energy due to insufficient transmission and storage capacity must be addressed through strategic investments (Parkinson, 2025). Market reforms will also be necessary to improve energy utilisation, enhance price stability, and ensure that Australia can fully leverage its renewable potential (Parkinson, 2025).
As the transition continues, one thing is clear: the energy landscape is changing at an unprecedented pace. The records set this summer are unlikely to stand for long, as each season brings new milestones in Australia’s journey towards a cleaner, more reliable, and economically efficient power grid (Parkinson, 2025).
References
1 Giles Parkinson, “A summer of record renewables, record demand highs and a record demand lows, and no blackouts.” Renew Economy, March 4, 2025, https://reneweconomy.com.au/a-summer-of-record-renewables-record-demand-highs-and-record-demand-lows-and-no-blackouts/
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