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.