Verdict
No! By transitioning to a renewable heavy energy system, we are actually increasing the reliability and resilience of our energy system by having a more diverse and decentralised network that represents the lowest cost energy solution for Australia.
Analysis
Some people claim that our energy network will be less resilient and reliable if we ‘put all our eggs in one basket’ by transitioning to a system that is primarily based on renewable energy technology. Critics argue that renewables create instability in the grid, increase blackout risks, and threaten energy security. However, this perspective is not only outdated but also fundamentally flawed.
A diversified, decentralised energy system built on renewables is more resilient, less vulnerable to shocks, and ultimately more secure and cheaper than traditional fossil-fuel-heavy systems1. Let’s delve into the details.
Centralised fossil systems: A single point of failure
Traditional fossil fuel systems are highly centralised, relying on large power stations that feed energy into long-distance transmission networks2. These facilities—coal-fired or gas plants and nuclear reactors—are capital-intensive, geographically fixed, and susceptible to various vulnerabilities. A single flood, cyberattack, or equipment failure can lead to widespread outages.
In Australia, outages at coal plants have resulted in blackouts and price rises. For example, an explosion and fire at the Callide C power station in Queensland in 2021 caused blackouts to almost 500,000 homes across NSW and Queensland, as it also triggered the shutdown of nearby power stations in Gladstone and Stanwell3.
Coal and gas power plants are also more susceptible to global events, such as the Ukraine war impacting gas prices, or COVID-19 pandemic impacting supply chains that lead to outages and reduced reliability for coal plants4.
Renewables: Inherently decentralised and resilient
It is easy to forget that when we refer to ‘renewable energy’ we are referring to a range of technologies, each with their own benefits and weaknesses. An energy system that incorporates renewable energy – from solar to wind to hydro to batteries – is a diversified and decentralised system. While wind and solar are variable, their variability is mitigated when deployed strategically and complemented by battery or hydro storage, and smart grid technology. Planned and implemented wisely, a renewable energy focused system will maximise the benefits of each type of renewable energy technology to mitigate the weaknesses. This decentralisation means that no single failure can incapacitate the entire system5.
To fully realise these benefits, Renewable Energy Zones (REZs) have been proposed as a more strategic and coordinated way to attract renewable energy investment. Often described as ‘modern-day power stations’, REZs are planned in areas with strong wind or solar resources, creating hubs that bring together large-scale generation, storage, and transmission infrastructure in one location. This integrated approach not only improves cost efficiency and supports local jobs and infrastructure but also enhances energy security and reliability across the grid6.
For example, South Australia has achieved over 70% renewable energy generation, primarily from wind and solar, demonstrating that high renewable penetration is feasible and stable. The Australian Energy Market Operator (AEMO) supports this, outlining in its 2022 Integrated System Plan a roadmap for a reliable and secure power system transitioning to net-zero emissions7.
Enhancing energy security through local resources
A transition to renewables will also help us reduce dependence on volatile global supply chains. Fossil fuel markets are subject to geopolitical tensions and price fluctuations, impacting domestic energy prices. In contrast, renewable energy harnesses local resources—sunshine, wind and water—insulating energy systems from international market dynamics. The ‘Future Made in Australia’ package aims to incentivise increased domestic manufacturing of technologies used to build and maintain clean energy infrastructure, which will further insulate our energy system8.
Once renewable infrastructure is established, operational costs are minimal, and the energy produced is not subject to the same market volatilities as fossil fuels. This domestic approach enhances energy security and price stability.
Advancements in storage and smart technologies
Addressing the intermittency of renewables, advancements in energy storage and smart grid technologies play a crucial role. Large-scale batteries, such as South Australia’s Hornsdale Power Reserve and Victoria’s Big Battery, provide essential grid-support services, including frequency control and load balancing9. These batteries respond in milliseconds, far surpassing the ramp-up times of traditional fossil fuel plants.
A renewable-focused energy system also inherently supports decentralisation through distributed energy resources, such as rooftop solar and household battery storage. Technologies like virtual power plants and AI-based grid management systems enable the coordination of numerous small-scale generators (householders), creating a cohesive and responsive energy network10. This also reduces reliance on large, centralised power plants and extensive transmission networks, which are vulnerable to weather events and equipment failures. A decentralised system, with multiple generation and storage nodes, is more resilient and easier to manage during emergencies or disasters.
Australia is already a global leader in this area, with over four million homes and businesses equipped with panels11. As more households pair solar with battery storage, they can evolve from consumers to “prosumers,” feeding energy to the grid and helping smooth peak demand. This transition creates a more flexible, participatory, and robust energy system, minimising risks and making homes more resilient to central system blackout by having access to generation and stored energy in their home.
Conclusion: Renewables reduce risk
No energy system is entirely risk-free. However, the claim that renewables increase risk is a myth. A decentralised, diverse renewable energy system distributes risk, reduces reliance on imported fuels, and enhances resilience to various disruptions, including cyberattacks and extreme weather events.
References
1 – Morrison, R., 2025. Case studies in resilience: How renewables helped. Renewable Energy Magazine. Available at: https://www.renewableenergymagazine.com/rose-morrison/case-studies-in-resilience-how-renewables-helped-20250109
2 – Australian Energy Market Operator (AEMO), 2022. 2022 Integrated System Plan (ISP). Available at: https://aemo.com.au/-/media/files/major-publications/isp/2022/2022-documents/2022-integrated-system-plan-isp.pdf
3 – Morton, A., 2021. Coal-fired power plant that caused Queensland blackouts broke down eight times in past year. The Guardian. Available at: https://www.theguardian.com/australia-news/2021/may/26/coal-fired-power-plant-that-caused-queensland-blackouts-broke-down-eight-times-in-past-year
4 – Australian Energy Market Operator (AEMO), 2021. 2021 Gas Statement of Opportunities. Available at: https://aemo.com.au/-/media/files/gas/national_planning_and_forecasting/gsoo/2021/2021-gas-statement-of-opportunities.pdf
5 – Hassan, Alguburi, Sameen, Salman & Jaszczur, 2023. A review of hybrid renewable energy systems: Solar and wind-powered solutions: Challenges, Opportunities and policy implications. Results in Engineering. Vol 20. Available at: https://doi.org/10.1016/j.rineng.2023.101621
6 – Transgrid,2023. What are Renewable Energy Zones (REZs) and why are they important for our sustainable future? Available at: https://www.transgrid.com.au/energy-transition/what-are-renewable-energy-zones-rezs-and-why-are-they-important-for-our-sustainable-future/
7 – Parkinson, G., 2023. South Australia has the most wind and solar and no baseload – so why is it the only state not fretting about a vulnerable grid? RenewEconomy. Available at: https://reneweconomy.com.au/south-australia-has-the-most-wind-and-solar-and-no-baseload-so-why-is-it-the-only-state-not-fretting-about-a-vulnerable-grid/
8 – Australian Government Treasury, n.d. Future Made in Australia. Available at: https://treasury.gov.au/policy-topics/future-made-australia
9 – Hornsdale Power Reserve, n.d. Hornsdale Power Reserve. Available at: https://hornsdalepowerreserve.com.au
10 – Mooney, J., 2024. The clean energy tipping point: Modelling battery and solar uptake. arXiv preprint. Available at: https://arxiv.org/abs/2410.14912
11 – Department of Climate Change, Energy, the Environment and Water (DCCEEW), 2024. Australia hits rooftop solar milestone. Available at: https://www.energy.gov.au/news/australia-hits-rooftop-solar-milestone
