Australia needs an energy system that delivers secure, reliable and affordable electricity. In the past, the nation has depended on coal-fired generation. Now, the way Australia generates electricity is changing – from fossil-fuelled to low emissions and renewable energy.

With coal retiring, renewable energy connected with transmission and distribution, firmed with storage and backed up by gas-powered generation is the lowest-cost way to supply electricity to homes and businesses as Australia transitions to a net zero economy.

Governments have set 2050 as the target for a net zero economy, with each jurisdiction having interim emissions and renewable energy targets to meet that deadline. Federal government policy is a 43% reduction in 2005-level emissions by 2030, with 82% of electricity supplied from renewable sources.

This energy transition, well underway, is by far the biggest transformation of the National Electricity Market (NEM) since it was formed 25 years ago. As well as the shift from coal to firmed renewables and low emissions sources, it will treble capacity to meet future demand, and facilitate a two-way flow of electricity across the networks.

Key takeaways:

• With coal-fired generation retiring, the 2024 ISP confirms that renewable energy, connected by transmission and distribution, firmed with storage and backed up by gas-powered generation, is the lowest-cost way to supply electricity to homes and businesses as Australia transitions to a net zero economy.
• The 2024 ISP includes updates to transmission projects from the 2022 ISP. Seven additional transmission projects have progressed to ‘actionable’ status since the 2022 ISP, allowing more coordinated and effective community consultation to commence earlier.
• Investment in transmission projects identified in the 2024 ISP will reduce costs for consumers. The transmission projects are expected to recoup their $16 billion investment costs, save consumers a further $18.5 billion in avoided costs, and deliver emissions reductions valued at $3.3 billion.
• Many households and businesses are taking steps to shape their own energy futures by investing in solar, batteries and electric vehicles. If consumer batteries are coordinated effectively, they have the potential to help lower costs for all consumers by offsetting the need for an additional $4.1 billion of grid-scale investment.