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10 Dec 2025

AEMO’s 2026 Draft Integrated Systems Plan (ISP) confirms that Australia must replace its ageing coal generation, and the cheapest way to do that is by scaling up renewables, storage and firming.

Regardless of shifting timelines in some states, the plan shows that two thirds of the east coast’s coal fleet will retire over the coming decade, with the Optimal Development Pathway scenario providing a coordinated least-cost plan to manage the transition.

AEMO’s draft ISP is a snapshot in time. It reflects current policy settings and the delivery pace required to manage Australia’s growing energy demand through electrification of our homes, industries and transport, as well as the expansion of data centres.
Jackie Trad Clean Energy Council CEO

Jackie Trad, CEO of the Clean Energy Council said that the transition to a clean energy system is already well advanced with renewables and storage now central to the future operation and stability of Australia’s modern and flexible electricity grid with growing demand into the future.  

“AEMO’s draft ISP is a snapshot in time. It reflects current policy settings and the delivery pace required to manage Australia’s growing energy demand through electrification of our homes, industries and transport, as well as the expansion of data centres,” Ms Trad said.

“What is clear is that replacing ageing coal will be achieved through renewables and storage. The task now is to continue modernising planning and environmental laws so that projects can be approved and delivered quickly to meet rising demand and support an orderly coal exit.  

“Australia’s households are now one of the driving forces of the energy transition. With record levels of rooftop solar and rapid growth in home batteries and EVs, families, small businesses and the industrial and commercial sectors are increasingly shaping how the system operates. Their investment and participation play a crucial role in complementing the large-scale projects in building a modern, efficient electricity grid,” she said. 

Ms Trad said AEMO’s ISP should be read alongside the remarkable progress already made across the system, with renewable generation nearly tripling in a decade.

“This transition is already well advanced. Only ten years ago, just 14.6 per cent of the east coast’s electricity came from renewables; today it is close to 50 per cent,” Ms Trad said. 

“Energy consumers are currently installing close to 1400 batteries a day, and renewables have avoided more than 200 million tonnes of emissions in less than a decade. With the right policy and planning settings, the system can continue to accelerate,” she said.

The Clean Energy Council’s latest quarterly investment figures show that, while grid-scale investment remains challenging, momentum in large battery projects is building. Five new storage projects reached financial close in the quarter, totalling around 1.2 GW of capacity and 4.1 GWh of storage, the third-highest quarterly result on record.

This transition is already well advanced. Only ten years ago, just 14.6 per cent of the east coast’s electricity came from renewables; today it is close to 50 per cent.
Jackie Trad Clean Energy Council CEO

The peak body for Australia’s renewables sector is also urging governments to keep working closely with industry and local communities to maintain confidence in the transition as it accelerates.  

“The best outcomes are seen when governments, industry and communities work together on practical solutions, especially in areas where the impacts are felt most directly. We are committed to ensuring regional Australia helps shape this transition and shares in the economic benefits it brings,” Ms Trad said.

ENDS

For more information or to arrange an interview, please contact: 

Danielle Tricarico
Clean Energy Council General Manager - Media

Liam Straughan
Clean Energy Council Media Officer

+61 409 470 683