SUBSCRIBE
PROFILE

Historic Reduction of Coal Share in Australia’s Energy Mix by End of 2024

By the end of 2024, coal's share in Australia's electricity generation dropped below 50%, a historic first, thanks to the surge in solar energy production.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

START NOW — 4.90$/month

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

SUBSCRIBE — 99$/year

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

Sign up for free to unlock this article

In Australia, the reliance on coal for electricity generation reached its lowest point in the fourth quarter of 2024, falling below 50% of the national energy mix. This significant shift is attributed to a substantial increase in solar energy production, according to the Australian Energy Market Operator (AEMO). This change marks a turning point in the country’s energy sector, which remains one of the world’s largest exporters of coal.

Solar Energy Growth

Electricity production from rooftop solar panels increased by 18% between October and December 2024, while solar farms saw a 9% rise, reaching record levels. As a result, renewable energy provided nearly 46% of Australia’s electricity for this quarter. A notable peak occurred on November 6, 2024, when renewable energy reached 75.6% of the national energy mix.

Challenges in the Energy Transition

Australia has committed to achieving zero carbon emissions by 2050. However, despite significant progress in renewable energy share, the country remains heavily dependent on fossil fuels, especially for electricity generation. In parallel, the Australian government announced an additional funding of 1.2 billion euros for its “green bank,” aimed at accelerating the transition to renewable energy.

Impact on Energy Prices

The gradual closure of coal plants and the increasing share of renewable energy have also affected electricity prices. In 2024, wholesale electricity prices surged by 83%, primarily due to the decline in coal-based electricity production and transmission constraints. Australia’s Minister for Climate Change and Energy, Chris Bowen, emphasized the need for new transport infrastructure to keep prices low and ensure access to cheaper energy.

Global Context

Globally, coal continues to account for about a third of the total electricity production, according to the International Energy Agency (IEA). Coal demand reached a record level in 2022. However, to achieve carbon neutrality by 2050, the IEA suggests that coal-based electricity production without emission capture must cease by 2040.

  • Popular on energynews.pro
Hydrogen Valleys: the Clean Hydrogen Partnership selects 36 European applications
Iberdrola adds 708 MW of solar capacity to joint venture with Norges Bank
Technip Energies secures two major contracts for Ecoplanta methanol plant in Spain
EDF power solutions and El Paso Electric launch 150 MW solar facility in New Mexico
TNC partners with Nucor to strengthen US nuclear supply chain by 2050
Coal expected to surpass natural gas this winter in two U.S. markets
Coal will temporarily become the main source of electricity in the Midwest markets MISO and SPP during winter, according to the latest federal forecasts.
Washington eases regulation to revive coal extraction
The Trump administration plans to open millions of federal hectares to coal and ease environmental rules governing this strategic industry.
South Africa opens rail sector to private players to boost coal exports
The integration of private operators into South Africa’s rail network marks a turning point for coal exporters, with a target of 55 million tonnes exported in 2025 from the Richards Bay terminal.
Russia shifts coal exports toward Asia, expert says
Facing Western restrictions, Russia plans to increase coal deliveries to China, India and Turkey, according to a recent presentation on the sector’s outlook.
Shanghai Electric strengthens energy investments in Pakistan with $3bn project
The visit of the Pakistani president to Shanghai Electric marks a new strategic phase in China-Pakistan energy cooperation, centred on the Thar mining and power project and local skills development.
Russia and Indonesia overtake Australia in South Korea’s thermal coal supply
Port congestion in Australia has boosted Russian and Indonesian coal exports to South Korea, with both now dominating the market due to lower prices and reliable delivery schedules.
JSW restarts coal output with two new longwalls in September
Polish state-owned producer JSW confirms its 13.4 million tonnes production target for 2025 thanks to new equipment coming online, despite recent disruptions at multiple sites.
Australian port congestion reshapes coal flows to South Korea
Russia and Indonesia overtook Australia as South Korea's top thermal coal suppliers in August, driven by lower prices and more reliable logistics amid persistent Australian shipment delays.
Uniper demolishes 116-metre cooling tower at Scholven site
Uniper has demolished cooling tower F at its Scholven power plant, marking a new stage in the dismantling of the Gelsenkirchen coal site, where the energy company plans to build a hydrogen-ready gas-fired plant.
Australian coal exposes global steelmakers to hidden climate risk
Underreported methane emissions from Australian mines could increase steelmakers’ carbon footprint by up to 15%, according to new analysis highlighting major gaps in global supply chains.
Russia targets 30 million tons of coal transported via Pacific Railway by 2026
The new Russian railway line linking the Elga mine to the Sea of Okhotsk port will reach full capacity in 2026, after an operational testing phase scheduled for 2025.
Romania negotiates with Brussels to extend coal plants until 2031
The Romanian government is asking the European Union for a five-year delay on the closure of 2.6 gigawatts of coal capacity, citing delays in bringing gas and solar alternatives online.
Colombia: Petro blocks coal to Israel in a political showdown
President Gustavo Petro bans all coal exports to Israel, a decision with minor energy effects but strong diplomatic weight, illustrating his anti-Americanism and attempts to reshape Colombia’s domestic politics.
India diversifies coking coal purchases, Australia retreats
India’s coking coal imports are rising and increasingly split between the United States and Russia, while Australian producers redirect volumes to China; 2025 results confirm a shift in trade flows.
China: 25 GW of coal approved in H1 2025, commissioning surges
China approved 25 GW in H1 2025 and commissioned 21 GW; the annual total could exceed 80 GW. Proposals reached 75 GW and coal’s share fell to 51% in June, amid declining imports.
Vitol and Breakwall finance $150M to support a metallurgical coal mine
Valor Mining Credit Partners completes its first major financing with a secured loan to strengthen the operational capacity of a U.S. mining site.
The U.S. Department of Energy Extends Operations of a Coal Plant in the Midwest
Amid tensions on the Midwest power grid, Washington orders the continued operation of the J.H. Campbell plant to secure electricity supply over the coming months.
Peabody cancels its $3.78 billion bid for Anglo’s coal mines
Peabody Energy abandons the acquisition of Anglo American’s Australian coal assets, triggering an arbitration process following the failure of a post-incident agreement at the Moranbah North mine.
Core Natural Resources reports USD220.2mn in cash flow and adjusts its financial policy
Core Natural Resources announces USD220.2mn in operating cash flow for the second quarter of 2025, while revising its capital return strategy and increasing post-merger synergies.
Global demand could extend coal’s role beyond 2030
A report by Wood Mackenzie reveals that geopolitical pressures and rising global electricity demand could keep coal-fired generation elevated well beyond current forecasts.