Australia is amongst fastest market to move away from coal: report

It is poised to be a regional outperformer for renewables. 

Australia is considered amongst the fastest market to diversify away from coal-fired power generation despite its coal dependence, a report found. 

About half of Australia’s power mix is sourced from coal-fired power as of the end of 2022; but Fitch noted it has observed accelerated commitments by power companies to phase out coal-fired power plants. 

“We believe coal-fired power generation's share of the generation mix will drop to slightly under 30% by 2032,” the report read in part. 

“Whilst this still represents the largest share of the power mix, it represents a significant ramp-down in coal-fired power’s presence in the market.”

Read more: New rules for grid connection needed in Australia: Clean Energy Council

Overall, the report noted that Australia is expected to be a regional outperformer for renewables and has the potential to be a global leader. 

Fitch projected that solar photovoltaics (PV) and onshore wind capacity will grow at an annual average pace of 7.3% and 7.4% respectively over the 10-year forecast period, whilst non-hydropower renewables capacity will reach 75.6GW by the end of 2032.