Renewable energy in Australia represents 5.2% of total energy consumption, but only 1.7% of total production, the difference being the result of significant non-renewable energy exports. In the five years to 2009 renewable energy consumption grew by 3.5%, faster than other energy sources. Of all renewable energy sources, hydro represents 63.4%, wind 22.9%, bioenergy 11.5%. photovoltaic 2.1%, and other sources (such as wave and tidal, solar thermal, and geothermal) 0.042%.[1] Note that these figures exclude a significant amount of energy saved through use of solar water heating units as they do not actually produce electricity; this is calculated separately to be 7.4% of clean energy production.[2] Biogas had the fastest rate of growth in 2008-09 with around 33%, followed by solar and wind with 6.5%.[3]
In the year to October 2010 Australian electricity production was 251 TWh, with an estimated 21,751 GWh or 8.67% generated from renewables, and 91.33% from fossil fuels (note: this excludes a further approximately 1.6 GWh produced through solar water heating).[4] This compares to 2006 figures, where approximately 9,500 GWh of electricity came from renewable sources, representing less than 4% of electricity consumption for that year.[5]
Australia has the potential for vast renewable energy capabilities. However this is not yet fully realised and the country's abundant resources are currently under utilised. The significant deployment of these technologies would substantially mitigate Australia's greenhouse gas emissions, as electricity generation accounts for the majority of the country's carbon emissions. Solar and wind energy sources are being harnessed on a comparatively small scale, and are at the stage of commercialisation. Other sources are being investigated and considered, such as geothermal and wave power.
In 2010, The Australian Government introduced the Large-Scale Generation Target of 41,000 gigawatt-hours of renewable generation from power stations, along side the Small-Scale Renewable Energy Scheme, an uncapped scheme to support rooftop solar power and solar hot water, to ensure that renewable energy share of 20% of electricity supply by 2020.[6] Several State governments also provide feed-in tariffs to encourage photovoltaics. Survey results suggest that there is considerable public support for the use of renewable energy and energy efficiency in Australia.[7]
The Snowy Mountains Scheme constructed between 1949–74 consists of sixteen major dams and seven major power stations, and has a total generating capacity of 3,800 MW. The scheme generates in average 4,500 GWh electricity per year.[8]
Hydro Tasmania operates thirty power stations and fifty dams, and has a total generating capacity of 2,600 MW. Each year an average of 9,000 GWh of hydro-electricity is generated by the company.[9]
In 2007–08 hydro-electricity represented 15% of renewable energy production in Australia.[10]
As of October 2010, around 22.9% of Australia's renewable electricity, and 2% of Australia's total electricity, was sourced from wind power,[4] enough electricity to power more than 700,000 homes.[11] This came from 52 operating wind farms containing a total of 1,052 turbines producing approximately 5,000 GWh of electricity per year. This figure represented approximately a 30% increase in wind power generation each year over the previous decade, or a total increase of more than 1,000% over that time. The total installed capacity as of October 2010 was 1,880 MW (including only projects over 100 kW), with a further 1,043 MW under construction.[11]
Wind power in South Australia is a fast growing industry, and the state of South Australia is well suited for wind farms. More wind power is generated in South Australia than any other Australian state or territory; as of October 2010 South Australia had an installed capacity of 907 MW from 435 turbines accounting for close to 20% of that state's electricity needs, considerably ahead of Victoria with 428 MW from 267 turbines, and Western Australia with 202 MW from 142 turbines.[11]
The Waubra Wind Farm near Ballarat, Victoria, completed in 2009, was the largest wind farm in the southern hemisphere,[10] consisting of 128 turbines spread over 173 km2[11] and rated at 192 MW, however in terms of generating capacity Lake Bonney Wind Farm near Millicent, South Australia was the largest with 239.5 MW, despite only having 99 turbines. These figures were set to be surpassed by the Macarthur Wind Farm at Macarthur, Victoria, scheduled to open in 2013 with a capacity of 420 MW.[11]
Solar photovoltaic (PV) technology generates electricity from sunlight, and it can be used in grid-connected and off-grid applications.
The issue for the Australian photovoltaics industry today is that there is enormous market potential, built up through a natural competitiveness in Australian research and development, industry investment and government policy support. However, despite this, the industry is not yet self-sustaining and advantages gained to date could be lost.[12] A 2004 market report suggested that a partnership between government and industry is necessary:
"The PV industry cannot continue to actively invest in strategic industry development unless the Australian government is also committed to the journey. The industry ... requires policy and program support to assist it in bridging the gap to mainstream commercial competitiveness."[12]
Two recent projects which illustrate co-operation between industry and government are the solar power station planned for north-western Victoria, and the development of new solar cells.
Many projects have demonstrated the feasibility of solar power in Australia and a large new solar power station in Victoria is planned.
Solar Systems is to build the world’s most advanced[13] photovoltaic (PV) heliostat solar concentrator power station in north-western Victoria. The 154 MW, A$420 million project, will generate 270,000 MWh per year, enough for more than 45,000 homes. It will aid in reducing salinity and create jobs during manufacture, construction and operation. It will also reduce greenhouse gas emissions by approximately 400,000 tonnes per year.[14] Full commissioning is expected in 2013, with the first stage to be completed in 2010.[15]
The essential components of the power plant, developed by Solar Systems over the past 16 years, are:
The commercialisation of this technology has already seen four smaller solar power stations established in central Australia, with support from the Australian Greenhouse Office.[16]
SLIVER Cell (TM) photovoltaic technology uses just one tenth of the costly and limited supply of silicon used in conventional solar panels while matching power, performance, and efficiency.[17] Professor Andrew Blakers, Director of the Australian National University Centre for Sustainable Energy Systems, invented the technology with colleague Dr Klaus Weber and developed it with funding from energy supplier Origin Energy and the Australian Research Council. Blakers and Weber won the Australian Institute of Physics' Walsh Medal for their work.[18] Origin Energy is presently developing SLIVER modules for commercialisation at its A$20M pilot plant in Regency Park, South Australia.[19]
Australia has developed world leading solar thermal technologies, but with only very low levels of actual use. Domestic solar water heating is the most common solar thermal technology.[20]
During the 1950s, Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) carried out world leading research into flat plate solar water heaters. A solar water heater manufacturing industry was subsequently established in Australia and a large proportion of the manufactured product was exported. Four of the original companies are still in business and the manufacturing base has now expanded to 24 companies. Despite an excellent solar resource, the penetration of solar water heaters in the Australian domestic market is only about 5%, with new dwellings accounting for most sales.[21]
It is estimated that by installing a solar hot water system, it could reduce a family's CO2 emissions up to 3 tonnes per year while saving up to 80% of the energy costs for water heating.[22]
While solar water heating saves a significant amount of energy, they are generally omitted from measures of renewable energy production as they do not actually produce electricity. Based on the installed base in Australia as of October 2010, it was calculated that solar hot water units would account for about 7.4% of clean energy production if they were included in the overall figures.[2]
There are no large large scale solar thermal power stations in Australia, although the country has significant research, development and commercialisation efforts.[23]
CSIRO's National Solar Energy Centre in Newcastle, NSW houses a 500 kW (thermal) and a 1.5 MW (thermal) solar central receiver system, which are used as research and development facilities.[24][25]
The Australian National University (ANU) has worked on dish concentrator systems since the early 1970s and early work lead to the construction of the White Cliffs solar thermal station. In 1994, the first 'Big Dish' 400 m2 solar concentrator was completed on the ANU campus. In 2005, Wizard Power Pty Ltd was established by Canberra investor Tony Robey in order to take the Big Dish technology to commercial deployment.[23] Wizard Power will construct a pilot power station at Whyalla to demonstrate a next-generation Big Dish design together with a chemical energy storage system using ammonia.[26]
Research activities at the University of Sydney and University of New South Wales have spun off into Solar Heat and Power Pty Ltd (now Ausra), which is currently building a major project at Liddell Power station in the Hunter Valley. The CSIRO Division of Energy Technology has opened a major solar energy centre in Newcastle that has a tower system purchased from Solar Heat and Power and a prototype trough concentrator array developed in collaboration with the ANU.[23]
Cloncurry, a north-west Queensland town, has been chosen as the site for an innovative $31 million (including a $7 million government grant) solar thermal power station. The 10 MW solar thermal power station would deliver about 30 million kilowatt hours of electricity a year, enough to power the whole town. Ergon Energy will develop the project which should be running by early 2010.[27][28]
In August 2008 Worley Parsons, an Australian engineering firm, announced plans to build world’s biggest solar plant in Australia within three years. Backed by nine Australian companies, including miners BHP Billiton and Rio Tinto, they have launched a study into finding possible sites to host the $1 billion plant.[29]
Solar Cities in Australia is a $75 million (US$56.5 million) program which is designed to demonstrate how solar power, smart meters, energy conservation and new approaches to electricity pricing can combine to provide a sustainable energy future in urban locations throughout Australia. It is a partnership approach that involves all levels of Government, the private sector and the local community. Adelaide, Townsville, Blacktown and Alice Springs are the first four solar cities announced in Australia.[30] Consumers will be able to purchase solar photovoltaic panels using discounted loans. The project also plans to help low-income and rental households in the community share in the benefits of the project through other cost-saving initiatives.[31]
In Australia, geothermal energy is a natural resource which is not utilised as a form of energy. However there are known and potential locations near the centre of the country in which geothermal activity is detectable. Exploratory geothermal wells have been drilled to test for the presence of high temperature geothermal activity and such high levels were detected. As a result, projects will eventuate in the coming years and more exploration is expected at potential locations.
South Australia has been described as "Australia's hot rock haven" and this emissions free and renewable energy form could provide an estimated 6.8% of Australia's base load power needs by 2030.[32] According to an estimate by the Centre for International Economics, Australia has enough geothermal energy to contribute electricity for 450 years.[33]
There are currently 19 companies Australia-wide spending $A654 million in exploration programmes in 141 areas. In South Australia, which is expected to dominate the sector's growth, 12 companies have already applied for 116 areas and can be expected to invest $A524 million (US$435 M) in their projects by the next six years. Ten projects are expected to achieve successful exploration and heat flows, by 2010, with at least three power generation demonstration projects coming on stream by 2012.[32]
A geothermal power plant is generating 80 kW of electricity at Birdsville, in southwest Queensland.[34]
Several projects for harvesting the power of the ocean are under development:
Biofuels produced from food crops have become controversial as food prices increased significantly in mid 2008, leading to increased concerns about food vs fuel. Ethanol fuel in Australia can be produced from sugarcane or grains and there are currently three commercial producers of fuel ethanol in Australia, all on the east coast.
Legislation imposes a 10% cap on the concentration of fuel ethanol blends. Blends of 90% unleaded petrol and 10% fuel ethanol are commonly referred to as E10,[36] which is mainly available through service stations operating under the BP, Caltex, Shell, and United brands.
In partnership with the Queensland Government, the Canegrowers organisation launched a regional billboard campaign in March 2007 to promote the renewable fuels industry. Over 100 million litres of the new BP Unleaded with renewable ethanol has now been sold to Queensland motorists.[36]
Biodiesel produced from oilseed crops or recycled cooking oil may be a better prospect than ethanol, given the nation’s heavy reliance on road transport, and the growing popularity of fuel-efficient diesel cars.[37]
Biomass can be used directly for electricity generation, for example by burning sugar cane waste (bagasse) as a fuel for thermal power generation in sugar mills. It can also be used to produce steam for industrial uses, cooking and heating. It can also be converted into a liquid or gaseous biofuel.[38]
In 2007-08 Bagasse accounted for 39% of Australia's renewable energy production, while wood for another 33%.[10]
Biomass for energy production was the subject of a federal government report in 2004.[39]
BP has been involved in solar power since 1973 and its subsidiary, BP Solar, is now one of the world's largest solar power companies with production facilities in the United States, Spain, India and Australia.[40] BP Solar is involved in the commercialisation of a long life deep cycle lead acid battery, jointly developed by the CSIRO and Battery Energy, which is ideally suited to the storage of electricity for renewable remote area power systems (RAPS).[41]
Edwards first began manufacturing water heaters in Australia in 1963. Edwards is now an international organisation which is a leader in producing hot water systems for both domestic and commercial purposes using solar technology. Edwards exports to Asia, the Pacific, the Americas, Europe, Africa and the Middle East.[42]
Origin Energy is active in the renewable energy arena, and has spent a number of years developing several wind farms in South Australia, a solar cell business using technology invented by a team led by Professor Andrew Blakers at the Australian National University,[19] and geothermal power via a minority shareholding stake in Geodynamics.[43]
Pacific Hydro is an Australian company that specialises in electricity generation using renewable energy. Its focus is on hydroelectricity and wind power. Power stations owned by Pacific Hydro include wind farms: Codrington Wind Farm, Challicum Hills Wind Farm, Portland Wind Project and Hydro power: Eildon Pondage Power Station, Ord River Hydro Power Station and The Drop Hydro.
Snowy Hydro Limited, previously known as the Snowy Mountains Hydro-Electric Authority, manages the Snowy Mountains Scheme which generates on average around 4500 gigawatt hours of renewable energy each year, which is around 74% of all renewable energy in the National Electricity Market in 2005. The scheme also diverts water for irrigation from the Snowy River Catchment west to the Murray and Murrumbidgee River systems.
Solahart manufactured its first solar water heater in 1953, and products currently manufactured by Solahart include thermosiphon and split system solar and heat pump water heaters. These are marketed in 90 countries around the world and overseas sales represent 40% of total business. Solahart has a market share of 50% in Australia.[44]
Solar Systems is a leader in high concentration solar photovoltaic applications,[45][46] and the company is preparing to build the world's largest photovoltaic Mildura Solar concentrator power station, Australia.[47][48] This project will use innovative concentrator dish technology to power 45,000 homes, providing 270,000 MWh/year for A$420 million.[49]
Solar Systems has already completed construction of three concentrator dish power stations in the Northern Territory, which together generate 1,555 MWh/year (260 homes, going by the energy/home ratio above). This represents a saving of 420,000 litres of diesel fuel and 1550 tonnes of greenhouse gas emissions per year. The total cost of the solar power station was "AUD $7M, offset by a grant from the Australian and Northern Territory Governments under their Renewable Remote Power Generation Program".[50] For comparison; 420,000 litres of diesel, at September 2009 prices of A$1.24/litre[51], would cost $520,800.[52]
Wind Prospect developed the 46 MW Canunda Wind Farm in South Australia, which was commissioned in March 2005. A second South Australian wind farm, Mount Millar Wind Farm, was commissioned in January 2006 and this provides a further 70 MW of generation. More recently, a third wind farm has reached financial close for Wind Prospect in South Australia. This is the 95 MW Hallett Wind Farm which is expected to be fully commissioned late in 2008.
Governments in Australia provide substantial financial support for the production and use of fossil fuels, through direct payments, favourable tax treatment, and other actions. These subsidies keep the cost of fossil fuel energy artificially low, and make it harder for renewable energy to compete. They distort energy markets, encourage greater use of fossil fuels, create higher levels of greenhouse gas emissions, and improve the profitability of energy companies that produce or use fossil fuels. Calculated figures in 2011 put the total fossil fuel subsidies by the Australian government at AU$12.2 billion annually.[53] This compared to just just AU$1.1 billion spent on climate policy such as support for renewables in 2010–11; furthermore, the funding gap between government climate change initiatives and fossil fuel subsidies had increased by AU$1 billion in the preceding three years.[53]
Australia is one of the major exporters of coal, the burning of which contributes significantly to anthropogenic climate change. Australia is also one of the countries most at risk from climate change according to the Stern report and Australia's own Garnaut Climate Change Review. Renewable energy technologies provide opportunities for mitigating greenhouse gases.[54]
Australia ratified the Kyoto Protocol in December 2007 under newly elected Prime Minister Kevin Rudd and will meet its targets. Australia had not ratified the Kyoto Protocol until then, due to concerns over a loss of competitiveness with the US, which also rejects the treaty.[55] Some business groups have lobbied the Australian government to prevent Australia from reducing greenhouse gas emissions,[56] including representatives of the coal, oil, cement, aluminium, mining, and electricity industries.[57]
Legislation to amend the federal Renewable Energy (Electricity) Act 2000, to create an Expanded Renewable Energy Target (ERET) was passed on 20 August 2009, with the broad aim of ensuring that renewable energy obtains a 20% share of electricity supply in Australia by 2020. To ensure this the government has committed that the MRET will increase from 9,500 gigawatt-hours to 45,000 gigawatt-hours by 2020.The scheme lasts until 2030.[58]
The Australian Greenhouse Office has responsibility for delivering several renewable energy programmes. It has policy responsibility for some financial incentives for the production and use of renewable energy, and for the Mandatory Renewable Energy Target (MRET) which requires an additional 9,500 GWh of electricity to be produced from renewable sources by the year 2010:[59]
Other Australian Government support for business, including renewable energy businesses, is delivered by the Department of Industry, Tourism and Resources.[59]
Despite the Tambling review, the Howard government decided not to extend the Mandatory Renewable Energy Targets Scheme.[61] However, various state Labor governments have recently announced their own renewable energy target schemes.[62][63][64]
From 2001 to early 2006, the main driving force for the establishment of wind farms in Australia was the Government's Mandatory Renewable Energy Target or MRET.[65][66] However, by mid-2006, sufficient renewable energy had been installed or was under construction to meet the small MRET target for 2010. Also, in 2006, several Federal Government Ministers spoke out against several wind farm proposals.[66]
Leaked minutes from a 2004 meeting between leaders of energy intensive industries and the Australian government describe how both groups were worried that mandatory renewable energy targets were working too well and were "market skewed" towards wind power.[67]
Dr Mark Diesendorf has suggested that the Howard Government tried to stop the development of wind power, the lowest-cost, new, renewable electricity source, until such time as coal-fired power stations with CO2 capture and sequestration and possibly nuclear power stations are available.[68]
Survey results suggest that there is considerable public support for the use of renewable energy and energy efficiency in Australia. In one recent survey, 74% of respondents favoured a "greenhouse strategy based mainly on energy efficiency and renewable energy, and 19% favoured an "approach that focuses mainly on nuclear power and clean coal technologies."[7]
The Australian results from the 1st Annual World Environment Review, based on a survey of 1,007 people in 2007, found that:[69]
There is a considerable movement known as The Transition Decade to transition Australia's entire energy system to renewable by 2020.
Voluntary uptake of GreenPower, a Government program initiated in 1997 whereby people can pay extra for electricity that is generated from renewable sources, increased from 132,300 customers in 2005 to 904,716 customers in 2009.[70]
Several recent reports have discussed the possibility of Australia setting a renewable energy target of 25 per cent by 2020.[71][72] Combined with some basic energy efficiency measures, such a target could deliver 15,000 MW new renewable power capacity, $33 billion in new investment, 16,600 new jobs, and 69 million tonnes reduction in electricity sector greenhouse gas emissions.[72]
Greenpeace released a report in 2008 called "Energy [r]evolution: A Sustainable Energy Australia Outlook", detailing how Australia could produce 40% of its energy through renewable energy by 2020 and completely phase out coal-fired power by 2030 without any job losses.[73]
David Spratt and Phillip Sutton argue in their book Climate Code Red that Australia (as part of a concerted global effort) needs to reduce its greenhouse gas emissions down to zero as quickly as possible so that carbon dioxide can be drawn down from the atmosphere and greenhouse gas emissions can be reduced to less than 325 ppm CO2-e, which they argue is the upper "safe climate" level at which we can continue developing infinitely. They outline a plan of action which would accomplish this.[74]
Australia could switch completely to renewable energy within the 2010 decade by building a dozen vast, new solar power stations and about 6500 wind turbines, according to a major new study. The "Zero Carbon Australia Stationary Energy Plan"—a collaboration between Melbourne University's Energy Research Institute, the environment group Beyond Zero Emissions, and engineers Sinclair Knight Merz—puts the cost at $37 billion in private funding and public investment every year for the next decade.[75]
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