Anita Talberg, Science, Technology, Environment and Resources
Section
Australia has various natural advantages that can be used to
kick-start the transition to energy security, independent of fossil
fuels.
Today’s renewable energy mix
Renewable energy accounts for two per cent of total
Australian energy production, five per cent of primary
energy and seven per cent of electricity generation. Most
of the electricity generation from renewable sources is hydropower
(almost five of the total seven per cent). It provides
60 per cent of Tasmania’s and 20 per cent
of NSW’s electricity generation. Wind power is the second
biggest renewable energy contributor. Together, wind and hydropower
account for more than 90 per cent of Australia’s
renewably generated electricity. South Australia is home to almost
50 per cent of Australia’s installed wind power capacity and
another 22 per cent is in Victoria. Bioenergy (that is,
energy produced from biological sources) provides most of
Australia’s primary energy produced from renewable sources.
Although Australia is the continent with the highest average solar
radiation per square metre, solar energy accounts for less than
two per cent of renewable energy production (or
0.1 per cent of total energy consumption).
Australian production of renewable
energy (Petajoules) - Text
version
The road ahead
The wealth of Australia’s renewable energy base suggests
that it can play a much more important role in powering the
country. Hydroelectricity production decreased
17 per cent in 2007–08 due to the drought, and a
lack of suitable sites limits the growth of hydropower in
Australia. However, electricity from wind has seen continual growth
since 2002, as has solar power (although, as a late-starter the
solar sector has not yet reached the same level of maturity as
wind). Bioenergy has the capacity to increase its contribution to
Australia’s energy mix by the year 2030, potentially by
60 per cent. In addition, technologies such as geothermal
and ocean power are currently under evaluation. For these
technologies to come to fruition, several technical and economic
hurdles will need to be addressed:
- cost, especially upfront capital costs of renewable energy
projects is still a major barrier to the growth of the industry.
Some has been alleviated by the Renewable Energy Targets (see the
Renewable Energy Target brief) but the industry continues to call
for assistance in the form of upfront subsidies
- intermittent supply is often cited as a reason why it is
difficult for renewable energy sources to completely replace
traditional sources. This is certainly the case for individual wind
and solar plants which rely on unpredictable or time-limited
resources, but energy storage (for example, with molten salt) and a
varied renewable network can go some way towards alleviating the
problem of intermittency and
- geographical distances between where the renewable energy
resources are and where the demand for energy occurs, pose
transmission problems. Areas of high solar radiation are inland and
wind speeds are high along the southern and south-western coastal
areas, whereas consumption is concentrated in grid-connected areas
of the capital cities.
These barriers are not impossible to overcome. Costs are already
being driven down by state and Federal policies. The RET,
state/territory feed-in tariff schemes, and Commonwealth grants
such as the Solar Flagships Program are examples of existing
government support.
Feed-in tariff schemes
A pro-rata payment made to individuals or companies that feed
renewable energy into the grid. Australia has state-based feed-in
tariffs.
To increase support, governments might consider loan guarantee
programs such as those offered in the US, tax credits, and
co-investment schemes to reduce the risks for lenders. Management
of electricity demand, such as through smart grids and smart
meters, can reduce the challenges of peak loads. Further,
non-intermittent renewable sources, such as geothermal and
bioenergy, are intrinsically suited to baseload power
generation.
Solar Flagships Program
A $1.5 billion Commonwealth Government grant launched in
May 2009 to support the deployment of four large-scale solar
projects. A shortlist of eight projects was announced in
May 2010.
Finally, long-distance interconnections between solar or wind
power plants and the grid can be realised with high-voltage direct
current links, as is proposed between North Africa and Europe.
Getting the mix right
With these technologies and robust policies, an expanded
renewable energy base is possible for Australia. According to
Beyond Zero Emissions, 100 per cent renewable energy
supply is technically possible by 2020 using only proven
technologies, at a cost of $370 billion over 10 years.
Other supporters call for increases to the 20 per cent
target under the RET. The Australian Conservation Foundation
advocates a target of 25 per cent, the additional five per cent to
come from large-scale solar power stations. Some climate groups
advocate special funding for emerging technologies such as
geothermal and ocean power. Australia has an abundance of
geothermal energy yet only one plant is in operation (in
Queensland). More sites are being explored but high capital costs
render the sector dependent on government support. On ocean power,
a recent study by CSIRO scientists found that about a half of
Australia’s current electricity consumption could be met by
converting just 10 per cent of the near-shore energy
along Australia’s southern margin into electricity (the
authors concede that this is an ambitious target).
The ‘right’ mix will be a combination consisting of
more wind, solar and bioenergy, rather than hydro, and room for new
industry entrants. A price on carbon is likely to favour investment
in renewable energy projects and allow the market to ‘pick
the winners’. Without a price on carbon, the renewable energy
industry needs longevity and certainty in government policy to find
the right mix.
Library publications and key documents
Australian Bureau of Agricultural and Resource
Economics (ABARE), Energy in Australia 2010, ABARE,
Canberra, 2010,
http://www.abare.gov.au/publications_html/energy/energy_10/energyAUS2010.pdf
M Wright and P Hearps, Zero carbon
Australia stationary energy plan: Australian sustainable
energy, Energy Research Institute, University of Melbourne,
Melbourne, 2010,
http://media.beyondzeroemissions.org/ZCA2020_Stationary_Energy_Report_v1.pdf
Geoscience Australia and Australian Bureau of
Agricultural and Resource Economics, Australian energy resource
assessment, report prepared for the Department of Resources,
Energy and Tourism, Canberra, 2010,
https://www.ga.gov.au/products/servlet/controller?event=GEOCAT_DETAILS&catno=70142