Drawing on new analysis, this paper finds that the majority of Australia's coal capacity is over 40 years old and the ability of our generators to reliably produce electricity has significantly dropped. Coal outages have been a primary driver of power outage warnings in recent years (particularly during summer), as well as contributing to some of the most severe price spikes. 

As coal generators continue to age and shut down, investment in replacement capacity – both renewable power and flexible storage – is critical. Storage capacity is expanding and large ‘shock absorber’ batteries are already playing a significant role in grid security.

Key findings

1. Australia’s coal fleet is old and getting more unreliable.
2. Coal outages are a primary driver of power outage risk, particularly in New South Wales and Victoria.
3. Coal outages have contributed to some of the most severe price spikes in recent years.
4. Ageing coal generators can be replaced with big batteries and other storage that complement wind and solar to provide reliable renewable power 24/7.
5. Batteries are already playing a significant role in grid security, and will increasingly support reliability.