Powering what’s next: Building a stronger Australian grid

By Samuel Morillon

A grid under pressure?

Australia’s electricity grid has served us well for decades, but it was built in a different time. Today, as we accelerate the renewable transition, that legacy infrastructure is being asked to do more than it was designed for.

The grid must now support a growing share of variable and distributed renewable generation, while balancing peak demand, ageing infrastructure, and extreme weather. Our system is holding, but the pressure is mounting.

With coal plants declining and renewables increasing, there’s broad agreement across government, industry and the community that our grid needs to evolve. But this evolution isn’t simply about investing in infrastructure – it’s about building a smarter, more adaptable, and more resilient energy system.

Building on Australia’s momentum

Australia has made strong progress in integrating renewables, with some regions already seeing more than 50% of electricity from renewable sources. The vision is clear, and much of the groundwork is already underway.

But, to fully unlock the benefits of renewables, we need a grid that can respond in real-time, move energy efficiently across regions, and adapt to supply and demand fluctuations without sacrificing stability, reliability or affordability.

It’s a big challenge, and no single technology or approach will be enough to meet it – especially now, when the need for innovation is greater than ever.

That’s where collaboration with technology providers and system operators comes in, to build on the progress already made. That means working with partners across the energy mix to build a grid that’s digitised, distributed and resilient.

Collaboration is key

Strengthening the grid is a shared responsibility. Governments, regulators, network operators, communities, and technology providers are moving forward together, and collaboration will remain essential as Australia navigates challenges around timing, investment, supply chains, and social license.

In Townsville, Australia, RATCH-Australia partnered with Siemens Energy to address emerging grid stability challenges. With rising demand and increasing renewables, Townsville required a solution to maintain system security, specifically to provide the system strength needed for a stable and secure network.

Instead of relying on stand-alone synchronous condensers, Siemens Energy collaborated with RATCH-Australia and grid operator Powerlink Queensland to repurpose an existing gas turbine generator into a hybrid configuration. This conversion allows the unit to switch between generating electricity and operating as a synchronous condenser to deliver system strength when required, opening up new business fields for conventional power plant operators. The plant itself does not need to directly manage increasing shares of renewables; instead, it supports the wider grid in maintaining stability.

The successful implementation in Australia demonstrates how innovative engineering can extend the life and versatility of existing assets.

Transferring energy efficiently over vast distances, such as those found in  Australia, typically relies on high-voltage direct current (HVDC) links. However, finding a cost-effective and efficient way to connect to these links remains a challenge.

That’s why we’re partnering with Japan’s Mitsubishi Electric to pioneer complementary DC circuit breakers – an industry-first approach that paves the way for HVDC power grids with more connection points, reduced energy losses, and better renewable integration.

This is a powerful example of how industry collaboration can unlock scalable, sustainable solutions for the energy systems of tomorrow. Technologies like grid-forming battery energy storage systems (BESS) and AI-enabled digital tools are already available to meet the grid’s evolving needs – while also laying the groundwork for what comes next.

Powering our renewable future

Australia has everything it needs to become a global leader in renewable energy – world-class resources, capabilities, expertise, and a national ambition. But, for Australia’s leadership to come to fruition, our grid needs to keep pace.

Modernising the grid is how we maintain stability, reliability and affordability for all Australians. It’s how we turn ambition into action. The energy transition isn’t just about building new capacity – it’s about building the right system to support it.

The opportunity is here. Now is the time to invest in a stronger grid, one that’s ready to power what’s next.

This article is brought to you by Siemens Energy