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During the current heat wave, with nighttime temperatures around 40°C, rooftop solar panels are struggling to supply energy, and household batteries are draining over successive hot days, forcing reliance on the grid. AEMO reports demand in South Australia is exceeding supply, with wholesale prices near their maximum.
Tim Buckley, Director of Climate Energy Finance, says the situation dispels myths promoted by fossil fuel lobbyists that more renewables reduce grid reliability. Despite extreme weather and heat waves, the grid has remained resilient, aided by record solar production.
Battery deployment is rapidly increasing: prices have dropped 90% over the last decade, with 200,000 home batteries installed in six months, totalling 4.7 GWh, alongside large-scale utility battery systems. Australia ranks third globally for battery installation in 2025 and 2026.
While some argue coal and gas are needed, citing low wind and drought conditions, Buckley emphasises a diversified approach. Batteries are increasingly powering the grid, reducing reliance on methane gas. Pumped hydro will play a role once Snowy Hydro 2.0 is completed, though it faces delays and cost overruns. Battery improvements, from 1-hour to 4-hour and soon 8-hour capacity, are rapidly transforming grid reliability and energy storage.
Source: ABC World Today, “Heatwave sweeps southern Australia,” 27 January 2026. https://www.abc.net.au/listen/programs/worldtoday/heatwave-sweeps-southern-australia/106255410