A pipeline of about 40 GW of grid-scale renewable generation and energy storage has Australia on track to maintain electricity reliability as ageing coal-fired power stations retire but the market operator warns the transition depends on these projects being delivered, not just announced.
The Australian Energy Market Operator (AEMO) said a record pipeline of new generation and storage is putting Australia on a stronger path to maintain electricity reliability but stressed the timely delivery and operational availability of these developments is key to ensuring the power system’s ability to replace retiring coal-fired generation and meet growing electricity demand.
AEMO’s 2026 Electricity Statement of Opportunities (ESOO) report – the annual 10-year reliability outlook for electricity supply and demand across Australia’s eastern and southeastern states and territories – highlights that electricity consumption and peak demand is forecast to increase by more than 40% over the next decade as homes, businesses and industry electrify and data centre demand grows.
About 15 GW of coal and gas generation is scheduled to retire during that timeframe but the 2026 ESOO shows the pipeline of generation and storage needed to maintain reliability in the National Electricity Market (NEM) has “strengthened materially,” backed by a strong rollout of new renewable generation, batteries, transmission and growing investment by households in rooftop solar and battery storage.
