Australia’s electricity reliability outlook has improved in the near term, but the country faces growing pressure to deliver new generation and storage projects on time, according to the Australian Energy Market Operator’s (AEMO) 2026 Electricity Statement of Opportunities (ESOO).

Released on 25 August 2026, the ESOO highlights a major transformation underway in Australia’s electricity system. AEMO says around 15 gigawatts of coal and gas generation is scheduled to retire over the next decade, while electricity consumption is forecast to rise by more than 40 per cent as households, businesses and industries electrify.

The report says the reliability outlook through around 2030 has strengthened, supported by record levels of new renewable generation and energy storage, as well as a pipeline of projects. However, this improvement depends on planned projects being completed on schedule.

Delays to renewable energy developments could create pressure on the electricity system, particularly as ageing coal-fired power stations retire. Data centres and other large electricity users are also expected to contribute to stronger demand growth.

The 2026 ESOO is 124 pages long, compared with 100 pages in 2025, reflecting the complexity of Australia’s energy transition. Previous reports were 175 pages in 2024 and 177 pages in 2023.

AEMO Chief Executive Officer Daniel Westerman said the improved outlook should not lead to complacency. The operator expects new capacity to come online in the early 2030s, but says further investment will be essential beyond 2030.

Importantly, AEMO says forecast reliability gaps do not mean power outages are predicted. Instead, they are an early warning that further investment or other measures may be needed.

With electricity demand rising and conventional generation retiring, the report places focus on timely investment, project delivery and long-term planning to keep Australia’s power system reliable.