Australia Power Market Report and Forecast 2025-2034

Australia Power Market Report and Forecast 2025-2034

Market Outlook

According to the report by Expert Market Research (EMR), the Australia power market size reached about 55.5 Gigawatt in 2024. Supported by the growth of solar and wind power, along with advancements in energy storage and grid management technologies, the market is expected to grow at a CAGR of 5.60% between 2025 and 2034, reaching almost 96.50 Gigawatt by 2034.

The Australia power market expansion is driven by a combination of factors, including the increasing demand for energy, the rise of renewable energy sources, and technological advancements in energy infrastructure. As Australia works towards a more sustainable and efficient energy system, the power market is evolving to meet both the growing energy needs of the country and the global push towards reducing carbon emissions. The demand for clean, affordable, and reliable energy is more critical than ever, and the Australia power market is adapting to these demands by incorporating renewable energy, modernising grid systems, and promoting energy efficiency.

One of the key drivers of the growth of the Australian power market is the country’s commitment to achieving its renewable energy targets. Over the past decade, Australia has made significant strides in integrating renewable energy sources, such as wind, solar, and hydroelectric power, into the national grid. The government's policies, such as renewable energy targets and investment incentives, have played a vital role in increasing the share of renewables in Australia's energy mix. The transition towards a more sustainable energy system is expected to reduce the country's reliance on fossil fuels and decrease greenhouse gas emissions, in line with global efforts to combat climate change.

According to the Australia power market trends, as the demand for renewable energy increases, so too does the need for modern energy infrastructure. Australia’s power grid, which was originally designed to handle conventional energy sources, is undergoing upgrades to accommodate the influx of renewable power. The integration of distributed energy resources (DERs), such as solar panels and home batteries, is also changing the landscape of the power market. Consumers are increasingly adopting these technologies to reduce energy costs and increase their energy independence. This shift towards decentralised energy generation is driving the need for new grid management technologies, such as smart meters, energy storage systems, and real-time data analytics.

The growing focus on energy efficiency is another major factor influencing the Australia power market development. As energy prices continue to rise and environmental concerns increase, both businesses and consumers are looking for ways to reduce their energy consumption. Energy-efficient appliances, smart home technologies, and green building standards are becoming more prevalent, leading to a reduction in overall energy demand. This trend is expected to continue as government incentives and consumer awareness drive the adoption of energy-saving technologies. Additionally, energy efficiency plays a crucial role in reducing the strain on the national grid, particularly during peak demand periods, which is essential for maintaining grid stability and reliability.

The shift towards electric vehicles (EVs) is also having a significant impact on the Australia power market growth. As the adoption of EVs increases, there will be a corresponding rise in the demand for electricity to charge these vehicles. While the widespread use of electric vehicles presents an opportunity for renewable energy growth, it also creates challenges in terms of grid capacity and the need for charging infrastructure. To address these challenges, the Australian government and energy providers are investing in fast-charging networks and exploring innovative solutions, such as vehicle-to-grid (V2G) technologies, that enable EVs to supply power back to the grid during peak periods.

Despite the positive outlook, the Australia power market faces challenges, such as the need for investment in energy infrastructure. While there has been progress in expanding renewable energy capacity and modernising the grid, further investment is needed to ensure that the power market can meet future demand. Additionally, the integration of renewable energy sources into the grid requires advanced technologies to manage the intermittent nature of renewable power generation. Energy storage solutions, such as large-scale batteries, are essential for addressing these challenges, but they remain expensive and require further technological advancements to become more cost-effective.

Looking ahead, the Australia power market is expected to continue its transition towards renewable energy and increased energy efficiency.. The government’s ongoing commitment to renewable energy targets, combined with technological innovations, will drive the continued growth of the power market, ensuring that Australia’s energy system becomes more sustainable, reliable, and affordable for consumers. As the world moves towards a low-carbon future, Australia’s power market is well-positioned to be at the forefront of this transition, contributing to global efforts to reduce emissions and combat climate change.

Market Segmentation

The market can be divided based on type, and region.

Market Breakup by Type

• Oil and Natural Gas
• Renewables
• Coal
• Hydroelectricity
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia power market. Some of the major players explored in the report by Expert Market Research are as follows:

• Energy Australia
• AGL Energy Limited
• Origin Energy Limited
• Iberdrola Australia Limited
• Goldwind Australia Pty Ltd.
• Momentum Energy Pty Limited
• Alinta Energy Pty Limited
• Tilt Renewables
• Energy Locals
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.