Nowadays renewable sources are being used as clean sources to generate electricity and to reduce the dependency on fossil fuels. The uses of renewable sources are being increased in electricity generation and contributed to reduce the greenhouse gas emission. The function of any electrical power system is to connect everyone sufficiently, clean electric power anywhere and anytime of the country. This can be achieved through a modern power system by integrating electrical energy from clean renewable sources into the nation's electric grid to enhance reliability, efficiency and security of the power system. The paper on the status of review the driving force of the generation of renewable energy and proposing electrical energy generation from renewable sources to be ensured at least 20% of total energy of Australia. This paper has been studied the existing electricity generation capacity of Australia from renewable and non-renewable sources. Optimal electricity generation from renewable sources has been examined. The environmental impact of electricity generation from renewable sources has been considered. Under this paper the yearly average wind data of past 20 years and above for some meteorological stations of Australia have been used. The prospective electricity generation from wind turbines and solar photovoltaic panels has been proposed in the paper that will increase electrical energy of the power grid of Australia. It was estimated the capital cost of prospective electricity generation farms from wind and solar PV sources.