76% Renewables, $30 Billion Savings: Australia’s Grid Lesson for India

Australia's power system has achieved another milestone in renewable energy integration. The country’s renewables have recently hit a record 76.4 percent share of electricity demand on the National Electricity Market. 

The breakthrough comes at a critical time when a new Clean Energy Finance Corporation (CEFC) study reveals that coordinated transmission infrastructure could save Australia USD 30 billion over 25 years while dramatically accelerating industrial decarbonisation.

The timing of these developments holds particular significance for India, which faces similar transmission challenges on a much larger scale as it pursues its ambitious renewable energy targets.

Australia's Transmission Success Story

The CEFC-commissioned report by Marsden Jacob Associates demonstrates the transformative potential of coordinated transmission planning. 

Their analysis of Western Australia's Pilbara region, where 98 percent of energy is currently fossil-fueled, shows that a Common User Transmission Infrastructure (CUTI) approach could deliver massive savings compared to fragmented, individual mining company networks.

The coordinated model would require 2,362 kilometres of new transmission lines - 407 kilometres less than individual approaches - while reducing renewable generation and storage requirements by 16 percent. This efficiency translates to USD 26 billion in avoided capital costs for generation and storage, plus USD 4 billion in transmission savings.

By 2035, the coordinated system would enable deployment of 4 GW of solar, 5 GW of wind, and 6.3 GW of batteries. In high-demand scenarios supporting green hydrogen and ammonia production, these figures could rise substantially.

The emissions impact is equally impressive, with the base case avoiding 24 million tonnes of CO2 equivalent annually, valued at USD 7.6 billion yearly. High-demand scenarios could prevent 35 million tonnes annually, worth USD 10.4 billion.

"This is a clear opportunity to build it once and build it right," said Rob Wilson, CEFC Executive Director for WA and Resources. "The economic case is overwhelming, and the coordination required is both achievable and essential".

Record Renewable Penetration Validates Grid Modernisation

Australia's achievement of 76.4 percent renewable electricity share on September 8, 2025, provides compelling evidence that high renewable penetration is technically feasible with proper grid infrastructure. At the record moment, rooftop solar alone provided 43.7 percent of total demand, while utility-scale solar contributed 15.9 percent wind 30.6 percent, and hydro 2.1 percent.

Notably, 4,879 MW of renewable capacity was curtailed during this period, with batteries absorbing 1,340 MW, highlighting both the abundance of clean energy and the ongoing need for grid flexibility solutions.

Grid-scale solar generation reached all-time highs in the first quarter of 2025, growing 10 percent year-over-year, while battery generation surged 86 percent, as per Quarterly Energy Dynamics report of Q1 2025.

India's Parallel Challenge: USD 108 Billion Grid Transformation

India faces remarkably similar transmission challenges but on a vastly larger scale. The Indian government has outlined plans to invest INR 9.12 lakh crore (USD 108 billion) in power transmission infrastructure by 2032, targeting expansion from 119  GW in 2024 to 168 GW by 2031-32 of inter-regional capacity.

The National Electricity Plan envisions adding 191,474 circuit kilometres of transmission lines and 1,274 GVA of transformation capacity, along with 33.25 GW of High Voltage Direct Current links. This represents one of the world's largest grid modernisation efforts.

Like Australia's Pilbara region, India faces geographic mismatches between renewable resource availability and demand centres. The country's richest renewable resources are concentrated in Rajasthan, Gujarat, and Tamil Nadu, while the highest demand exists in industrial centres like Delhi-NCR, Maharashtra, and West Bengal.

Transmission bottlenecks have become critical constraints. On August 11, 2022, India lost 6 GW of renewable energy due to grid limitations. 

The Central Electricity Authority estimates that integrating over 500 GW of renewable capacity by 2030 will require building 50,890 circuit kilometres of Interstate Transmission System lines and adding 433,575 MVA of substation capacity. The estimated investment requirement is INR 2.44 trillion just for this expansion.

Financial and Technical Parallels

India's renewable energy sector faces challenges strikingly similar to those addressed by Australia's coordinated approach. In 2024, India announced a record 73 GW of renewable tenders, but approximately 8.5 GW went undersubscribed - five times the previous year's shortfall, IEEFA said in a report. This reflects complications from fragmented tender processes and interstate transmission delays.

The total unsigned capacity for power purchase agreements exceeds 40 GW, with project cancellations reaching 38.3 GW between 2020-2024, representing 19 percent of total capacity. 

These challenges mirror the inefficiencies that Australia's coordinated transmission approach aims to eliminate. The Australian Energy Market Operator (AEMO) has warned that, by 2027, major solar farms in southeast Australia may be forced to curtail more than one-third of their power generation due to delays in building transmission infrastructure.

India's distribution companies (DISCOMs) face mounting financial distress, preventing them from signing power purchase agreements and stalling renewable projects. This creates uncertainty similar to what Australia's mining companies face with individual infrastructure approaches.

Technology and Innovation Convergence

Both countries are adopting similar advanced technologies to address grid challenges. Australia's battery storage capacity is expanding rapidly, with 8.7 GW under construction and projections reaching over 18 GW by 2035. India is developing comprehensive battery energy storage systems, with 13.5 GW expected by 2026-27.

High Voltage Direct Current (HVDC) technology features prominently in both nations' plans. Australia's CUTI model emphasises HVDC for efficient bulk power transfer, while India plans to add 32,250 MW of HVDC capacity during 2027-32.

Furthermore, Smart grid technologies are central to both countries' modernisation efforts. 

Lessons for India

Australia's CEFC study offers several key insights relevant to India's transmission challenge.

Economic Benefits of Coordination: The USD 30 billion savings from coordinated planning in Australia's relatively small Pilbara region suggest even greater potential benefits from coordinated approaches to India's massive transmission needs.

Reduced Land Use: Australia's coordinated model requires 21 percent less land use than fragmented approaches. This could be particularly valuable in densely populated India, where land acquisition remains a major challenge for infrastructure projects.

Enhanced Grid Stability: Coordinated transmission enables better resource sharing across networks, reducing generation and storage requirements by 19 percent. This efficiency could help India optimise its renewable energy investments.

Australia's renewable energy success at over 75 percent grid penetration demonstrates that high renewable shares are technically achievable with proper transmission infrastructure. 

For India, this suggests that transmission investment must be coupled with storage and smart grid technologies to maximise renewable energy utilisation. The Australian experience also validates the importance of coordinated planning over fragmented approaches, offering a compelling blueprint for India's energy transition.