South Australia Generation Mix

South Australia Generation Mix

South Australia has the most transformed generation mix in the NEM, following the closure of its last coal-fired power station. Wind and solar now regularly supply the majority of the state's electricity, and South Australia frequently achieves periods where renewable generation exceeds total demand, with surplus exported to Victoria via the Heywood interconnector.

Gas-fired generators, primarily open-cycle gas turbines, act as the primary balancing resource, ramping up when wind and solar output drops. The cost differential between gas peaking and wind/solar generation is the primary driver of South Australia's wholesale price volatility.

Battery storage, led by the Hornsdale Power Reserve, plays a growing role in smoothing generation output and providing frequency control services. South Australia's generation mix provides a preview of the challenges and opportunities facing the broader NEM as other regions increase their renewable penetration.