The global energy landscape is rapidly changing, with Australia at the forefront of this transformation. Over recent decades, our energy market has evolved significantly, shifting from a heavy reliance on fossil fuels to a more sustainable and innovative mix of renewable energy sources. This change, driven by technological advancements anda commitment to sustainability, positions Australia as a leader in the renewable energy sector.
Historically, Australia's energy market was dominated by coal and natural gas. As recently as 2010, coal-fired power plants provided approximately 75% of the nation's electricity¹. While this made power relatively cheap, it came with a high environmental cost. Australia's carbon emissions peaked in 2007, contributing significantly to global climate change². To further sway this imbalance, renewable energy sources were minimal, contributing less than 8% of the total energy mix in 2009³.
Today, the energy landscape looks markedly different. Solar and wind power have surged, driven by government incentives and decreasing costs. As of 2021, renewables account for over 30% of Australia's electricity generation. Solar power demonstrates the most significant growth⁴, primarily through an 80% decrease in the cost of solar panels over the past decade, making solar the world’s most economical source of new electricity⁵.
The deregulation of the energy market introduced competition, leading to more efficient and innovative energy solutions. Consumers now have more choices, and prices are more competitive.The integration of smart grids and advanced analytics has revolutionised energy management, enabling real-time monitoring and predictive maintenance that enhance grid efficiency and reliability.
Battery Energy Storage Systems (BESS), are playing a crucial role in managing the intermittency of renewables, storing excess energy for use during peak times and enhancing grid stability. In 2023, Australia had over 5,966M MW of battery storage capacity, with projections showing significant growth in the coming years⁶.
Technological advancements will also drive change. Beyond BESS, solutions like flow battery technology will play critical roles in creating a resilient energy system. The Australian government has committed funds to trial a vanadium flow battery by Yadlamalka Energy in South Australia, presenting opportunities such as increased energy storage, long operating life and low environmental impact7.
On another technological front, the rise of electric vehicles (EVs) presents both opportunities and challenges. By 2030, EVs could constitute 20% of new car sales in Australia, acting as mobile energy resources through vehicle-to-grid technology8. This integration can stabilise the grid and offer new revenue streams for EV owners.
Several trends will shape the future of Australia's energy market. The shift towards renewable energy will continue, supported by increased investments in solar, wind, offshore wind and advanced solar solutions. The cost of wind turbines has fallen by around 40% over the last decade, further boosting their viability9. Decentralised energy systems, including micro-grids and community energy projects, will empower local communities to generate, store, and manage their own energy. These systems will also enhance energy security, reduce costs, and promote local economic development.
Moving forward, Australia's energy market will be influenced by global trends and collaborations. International climate commitments and advancements in clean energy technologies will drive innovation and progress. By 2050, global investments in clean energyare expected to reach AUD 4 trillion annually, with Australia poised to benefitfrom these trends10.
Our Role
Volta Advisory is proud to be part of Australia’s energy transformation. We specialise in guiding major infrastructure and renewable energy projects and are developing and delivering over 2 gigawatts of new generation and storage projects across Australia. Our techno-commercial expertise ensures seamless grid connections and optimal project outcomes, blending technical knowledge with commercial expertise. We also offer VoltForce Analytics (VFA), a B2B platform designed to tackle cost overruns and inefficiencies in renewable energy projects, accelerating decarbonisation goals.
Australia's energy market is on an exciting journey from a fossil fuel-dependent past to a sustainable future. At Volta Advisory, we're committed to driving this transformation forward. We're inspired by projects that advance climate action and help Australia meet its renewable energy targets. Looking ahead, the future of energy in Australia is bright and we are fired up by the many possibilities that will open the door to innovation. Equally, we are eager to collaborate with like-minded organisations who are committed to pioneering innovative solutions to accelerate the realisation of Australia’s energy potential.
Looking ahead, the future of energy in Australia is rapidly unfolding as we progress from a fossil fuel-dependent past to a sustainable future. At Volta Advisory, we're dedicated to driving this transformation forward by helping open the door to innovative solutions that will accelerate the realisation of Australia’s energy potential.
References
1 Australian Energy MarketOperator (AEMO), "Historical Generation Data 2010."
2 Department of Industry,Science, Energy and Resources, "Australia's Emissions Projections2021."
3 Clean Energy Council,"Clean Energy Australia Report 2009."
4 Clean Energy Council,"Clean Energy Australia Report 2021."
5 International Renewable EnergyAgency (IRENA), "Renewable Power Generation Costs in 2020."
6 Energy Storage News "Australia installed 2.5GWh of battery storage in record-breaking ‘Year of the Big BatterY’."
7 Transparency Portal(Australian Government) "Game-changing solution to extend grid-scale battery tech."
8 Electric Vehicle Council,"State of Electric Vehicles in Australia 2020."
9 International Energy Agency(IEA), "World Energy Investment 2020."
10 Bloomberg New Energy Finance(BNEF), "New Energy Outlook 2020."
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