South Australia Secures Federal Funding to Become First Non-Hydro Grid to Reach 100% Net Renewables

South Australia has officially secured federal funding under a Renewable Energy Transformation Agreement, putting the state on track to become the first non-hydro grid in the world to operate on 100% net renewable energy by 2027.

The agreement includes federal backing for at least 1 GW of new wind and solar generation and 400 MW (1,600 MWh) of energy storage. This boost in capacity, along with the soon-to-be-completed Project Energy Connect transmission link with New South Wales, will allow South Australia to achieve its ambitious target.

Currently, South Australia leads not only Australia but the world, with wind and solar providing around 70% of its electricity over the past year. Hitting 100% net renewables means that the annual output of wind and solar (and stored) energy will equal the state’s total electricity use, even though the grid will still rely on imports, exports, and gas generation at times to balance supply and demand.

This milestone represents a global benchmark in the transition to clean energy, particularly in the face of ongoing skepticism from fossil fuel advocates who argue that modern economies cannot run reliably on renewables and storage.

Interestingly, the 100% net renewables goal was originally announced by South Australia’s former Liberal government, with the current Labor administration accelerating the target from 2030 to 2027.

The agreement was unveiled in Port Augusta, a symbolic location where a former coal-fired power station once stood. While the federal opposition has proposed building a nuclear plant there, the site is now evolving into a hub for green energy and industry.

Despite no new wind or solar farms connecting to the grid in the last two years, that’s about to change. The 412 MW Goyder South wind farm, the state’s largest, is preparing to send its first electricity to the grid.

In addition, a number of large-scale battery projects are under development across the state, including at Blyth, Hallett, Clements Gap, and Templers, with another project at Tailem Bend nearing commissioning.

These developments are expected to push the state’s renewable share to around 80% within the next year, with the newly funded 1 GW of wind and solar and 400+ MW of battery capacity (plus at least 200 MW from the national Capacity Investment Scheme) helping to reach the 100% net target by 2027.

South Australia is also building the world’s first green hydrogen power plant in Whyalla, alongside a 250 MW electrolyser and hydrogen storage facility, which will be the world’s largest of its kind once complete.

With growing demand for clean energy, South Australia is attracting increasing industrial interest. Transmission operator ElectraNet reports that over 2 GW of new industrial energy loads have already made inquiries.

Federal climate and energy minister Chris Bowen emphasized that South Australia is the first state to secure the funding needed to meet its renewable goals under the national Capacity Investment Scheme (CIS). The CIS is a cornerstone of the federal government’s energy strategy and aims to deliver 32 GW of new renewable generation and storage across Australia by 2030.

The first round of CIS tenders attracted overwhelming interest, with over 40 GW of renewable proposals for just 6 GW of available contracts. A recent storage tender for 600 MW (2,400 MWh) across South Australia and Victoria drew 19 GW of proposals, highlighting strong industry appetite.