Where Does Australia’s Electricity Come From?

The greatest transformation of Australia’s energy system since the 1950s is currently taking place. Economic, engineering, and environmental factors are driving these changes. Consumer preferences are changing as well, with a growing desire for ‘green energy’.

Fossil fuels have mostly provided Australia’s energy needs up until this point. Although their use has grown significantly in recent years, at the moment renewable energy sources only make up a minor percentage of Australia’s primary electricity output (approximately 7%).


Large power plants in Australia burn black and brown coal to create the majority (75%) of the nation’s electricity.

In Australia, natural gas ranks third in terms of energy production (after oil and coal) at 16%. It is used by manufacturers to produce goods, power plants to generate energy, and houses to heat and cook with. When used to produce power, it is a non-renewable source that produces around half the amount of emissions as coal does.


Australia has a substantial base of renewable resources that are dispersed widely around the nation. We have access to geothermal energy, hydro energy, wind energy and solar energy. As well as some more emerging types of energy such as ocean energy and bioenergy. As of 30 June 2022, there are more than 4.6 million small-scale renewable installations in Australia.


Around 80% of all the electricity in Australia is provided via the National Electricity Market (NEM), which unites the five eastern and southern states, as well as the ACT. Western Australia and the Northern Territory have their own energy systems and regulatory frameworks.

Electricity is generated by large generators (power plants) using an energy source like coal, wind, solar, or hydro. Long distance high voltage lines transport the electricity where it is needed. Distribution networks then change the high voltage back to low voltage currents for distribution to homes, workplaces, and factories via local poles and wires. Solar PV panels are installed on many residences, with some also having integrated battery storage systems.

Well Connected Electrical Services can look after all of your electrical needs. Your home or businesses electricity supply can be inspected by our licensed electricians. Click here to request a visit today.

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