South Australia has the first power system in the world where rooftop solar can, at certain times, exceed the entire state’s electricity demand.

While this is a valuable part of the transformation to a low carbon energy supply, when combined with our other power sources, sudden variations are causing technical and safety issues to our traditional electricity grid.

To improve our system’s stability and security moving forward, South Australia is in the process of transforming to a modern energy system

Where does South Australia's electricity come from?

South Australia generates more than 70% of its electricity from renewable sources.

By 2025/2026, this is projected to reach 85%, with a target of 100% net renewable energy by 2027.

The remainder is generated from non-renewable sources and from interconnection with other states through the National Electricity Market (NEM).

Renewable energy in South Australia is made up of the following sources:

  • Distributed Energy Resources (DER) / Customer Energy Resources (CER)
  • Wind farms
  • Solar photovoltaic (PV) farms
  • Solar thermal farms
  • Big batteries and large scale energy storage

Distributed Energy Resources (DER) / Customer Energy Resources (CER)

DERs / CERs are smaller electricity generation sources like rooftop solar, home batteries and electric vehicles. They are most commonly spread out (geographically distributed) across homes and businesses, rather than being in one central location or farm. While a single rooftop solar system might seem small, when combined across the state, rooftop solar is one of South Australia’s largest power generators. At certain times of the year, it is the largest.

In most cases, the home or business they’re installed on is powered first. If a battery system is installed, any excess electricity generated is then stored into the battery. If the battery is full, or if there isn't a battery, excess electricity is then fed into the grid.

To reduce costs, homeowners should aim to use key appliances during the day while their rooftop solar is generating electricity. Try and use washing machines, dishwashers, clothes dryers, or pool pumps for example, between 11:00 am and 3:00 pm. Unless you have a home battery system, electricity used at night will come from the grid at a cost.

In 2023, more than 1 in 3 (40%) of homes in South Australia have rooftop solar installed. More than 30,000 home batteries are also installed across our state.

Wind farms

These farms use turbines to convert wind to electricity, and supply a significant amount of energy to South Australia. Wind farms have the benefit of operating day and night, in cloudy, rainy, and sunny conditions. Major wind farms in South Australia are located at Hornsdale, Lake Bonney, Hallett, Snowtown, and Cape Jervis.

Solar photovoltaic (PV) farms

These are large-scale solar facilities that use PV technology to convert sunlight to electricity. Major solar farms in South Australia are located in Port Augusta, Mannum, Tailem Bend, Coonalpyn and Streaky Bay.

Solar thermal farms

These farms are concentrated solar thermal (CST) plants that use mirrors and lenses to concentrate the sun’s energy. In South Australia we have a solar thermal plant in Port Augusta that utilises the captured heat to operate a major commercial horticulture operation.

Big batteries and large scale energy storage

South Australia has a number of ‘big battery’ and large scale energy storage installations. These are used to support the electricity grid in times of both high and low demand.

When demand is high and additional electricity is required, these storage facilities can be used to supply stored electricity. Conversely, at times when more electricity is being generated than the grid requires, these storage facilities can soak up some of the excess electricity.

These facilities provide support measures known as power system security services. For more information, visit our transforming to a modern energy system page.

Renewable energy sources such as geothermal, pumped hydro, renewable hydrogen, and bioenergy are also being explored for South Australia.

South Australia is quickly transitioning from fossil fuels toward clean, renewable sources of power. Our last coal station shut down in 2016.

While renewable energy is now the main source of electricity generated in South Australia, natural gas-fired generation also makes up some of the remaining electricity needed to meet demand.

A relatively small amount of the state's electricity can also come from diesel-fired power stations, but these are generally minor stations that operate during rare peak demand periods.

Interconnectors allow the import and export of electricity to and from other states, when required. South Australia currently has two interconnections with Victoria, the Heywood and the Murraylink.

The Heywood interconnector, which began operation in 1989, is part of South Australia’s transmission network and connects with the Victorian transmission network at Heywood. The capacity of the interconnector was upgraded in 2016 to 650 MW.

The 220 MW Murraylink interconnector is an underground system which began operating in 2002. Converter stations are located at each end of the interconnector, with the Victorian end of the interconnector in Red Cliffs and the South Australian end near Berri. At 180 km in length, it is one of the world’s longest underground electricity systems.

Project EnergyConnect is an 800 MW interconnector currently under construction which will connect South Australia to New South Wales and provide an additional connection to Victoria. The South Australian end will be in Robertstown and the New South Wales end in Wagga Wagga, with a connection from Buronga in NSW to Red Cliffs in Victoria. Once constructed, the transmission line will be approximately 900 km in length.

The electricity grids of six Australian states and territories are linked through these and other interconnectors. Together these grids are regulated by the National Energy Market (NEM).

Off-grid energy systems enable rural and remote households, businesses, communities and towns to become self-sufficient. They are particularly valuable in remote areas where establishing a standalone or mini-grid system may be cheaper than connecting to a large-scale grid.

In South Australia, most off-grid power is provided by diesel generators. However the high costs of diesel fuel and transportation are making renewable energy options increasingly appealing. The South Australian government supports off-grid renewable energy systems in areas such as Coober Pedy and the Anangu Pitjantjatjara Yankunytjatjara Lands, and at remote mine sites.

Find out more about our off-grid energy sources and projects.

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How is electricity transported to my home or business?

South Australia’s electricity system was originally built to send electricity one-way, from power stations to the end user. This system is changing as electricity is now operating two-ways, with end users sending electricity back into the system.

To improve our system’s stability and security moving forward, South Australia is in the process of transforming to a modern energy system.

When electricity leaves large scale generating sources, like conventional power stations and wind or solar energy farms, it enters the high voltage transmission network. The South Australian network operates in the range between 66,000 Volts and 275,000 Volts.

High voltages allow electricity to efficiently travel large distances to substations, where transformers then reduce the electricity to lower voltages for use in the distribution network.

The transmission network also links South Australia’s power system to other states, using interconnectors to the National Energy Market (NEM).

South Australia’s transmission network is owned and operated by ElectraNet. They manage transmission lines operating at 275,000, 132,000 and 66,000 volts (275kV, 132kV and 66kV).

From transmission substations, electricity is transported at reduced voltages of 33,000 or 11,000 volts to local substations within the distribution network. This electricity is then distributed to localised transformers, which reduce the voltage even further to supply electricity to homes and businesses, typically at 230/400 volts.

South Australia’s distribution network is leased to and managed by SA Power Networks (SAPN)

If you have a solar system, electricity generated from your solar panels will instantly power your home or business.

If you also have a battery, any excess electricity generated from your solar system is then stored into the battery. If the battery is full, or if you don't have a battery, excess electricity is then fed into the distribution network.

Unless you have a home battery system, electricity used at night will come from the distribution network at a cost.

For more information, see Distributed Energy Resources above.

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The National Electricity Market (NEM)

The NEM interconnects six states and territories across Australia - Queensland, New South Wales, Australian Capital Territory, Victoria, Tasmania, and South Australia.

The NEM includes a wholesale market to coordinate the dispatch of electricity across the interconnected grids, managed by the independent Australian Energy Market Operator (AEMO).

The electricity market works as a 'pool', or spot market, where power supply by generators and demand from energy users is matched instantaneously through a central, coordinated approach.

You can view the electricity currently being shared across the NEM, and the mix of various electricity generation sources being used, on the AEMO website.

What you are charged for your electricity is made up of a range of items. Depending on your circumstances (if you own a solar system for example), a combination of the below makes up your final electricity costs:

  • Wholesale costs: the cost your electricity retailer incurs when contracting for and purchasing electricity, generally for a period of time, from the National Electricity Market.
  • Network supply costs: the costs of transmitting and distributing the electricity to you through the network.
  • Retail costs: the costs of the retailer running their business. This can include items like administration fees and their profit margin.
  • Green costs: the costs of state-based energy efficiency and solar feed-in schemes, and the Australian Government’s Renewable Energy Target.

Some additional things that can influence your electricity costs include:

  • Tariff plan charges: the type of billing plan you have selected with your retailer. Customers on a flat rate plan are charged at the same rate for electricity all day. Customers on a time of use plan (ToU) will have a smart meter on their home and are charged a different rate for their electricity depending on the time of the day it is used.
  • Feed in tariffs: if you have a rooftop solar system, any excess electricity that is not being used or stored at your property may be exported back into the grid. A feed in tariff is the value you are paid by your retailer for the electricity you 'feed' (export) into the grid.

The DMO was introduced in 2019 to help consumers who do not or cannot shop around for new electricity deals. The DMO sets a maximum price on how much electricity retailers can charge consumers who are on default plans, known as standing offer contracts. These are the base level contracts customers will find themselves on if they haven't actively shopped around or switched to a new plan.

This price cap set by the DMO also acts as a benchmark across the market, known as the reference price. Energy retailers must use this when advertising their offers, so customers can then use the reference price to compare different electricity plans when shopping around for a new offer.

The Australian Energy Regulator (AER) sets and enforces the DMO.

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Regulation of the electricity market and industry

The Australian electricity industry is governed by electrical acts, regulations, and standards.

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Real-time graph of Australia’s current supply and demand

This bar graph is updated every few minutes, and shows:

  • How much electricity is being generated in each state
  • How much electricity is being used by each state
  • Which energy source is being used to generate the electricity

Hover over the bars for more information.

You can view a legend for the graph and the data in a table on the Renew Economy website.