Australia's crippling drought resulted in more wind power being generated than hydro last year for the first time.
A Clean Energy Regulator report released on Thursday shows baseline hydro generation declined by more than 50 per cent last year compared to 2018.
The report notes 2019 was Australia's hottest and driest year on record.
From 2018 to 2019 solar PV generation more than doubled, with a record amount of solar farms built in recent years.
The report reiterates the need for investment in new transmission capacity so the large pipeline of renewable energy projects can be used while maintaining a stable grid.
"Grid constraints are leading to curtailment of generation for some operating renewable power stations and delaying connections in some locations," it says.
Australia met its renewable energy target early last year after hitting the target of 33,000 gigawatt-hours - or 23.5 per cent - of Australia's electricity coming from renewable sources.
The original deadline for the target was this year, and another goal has not been set.
