Australia's energy mix plays a crucial role in meeting the nation's power demands and transitioning towards a sustainable future. As the global energy industry focuses on decarbonisation and renewable energy, Australia's energy sector is experiencing significant change.
Historically, we’ve relied heavily on coal for electricity generation, due to its abundance and affordability. Coal still accounts for approximately 70% of electricity generation nationally, but recent years have seen a purposeful shift towards cleaner energy.
Many states are taking advantage of our abundant natural resources and we’ve seen rapid growth of solar and wind energy installations, such as:
For reference, 100 MW is roughly enough clean energy to power 42,000 homes.
The Kidston Solar Project in Queensland is another step forward towards a greater reliance on cleaner energy. Completed in 2021, it’s one of 12 large-scale solar PV projects supported by the government’s Australian Renewable Energy Agency (ARENA) that are expected to triple the amount of electricity solar produces nationally.
When comparing Australia's energy mix to global markets, Australia has one of the highest per-capita greenhouse gas emissions, due to our reliance on coal for electricity generation. In contrast, countries like Germany and Denmark have made substantial progress in renewable energy adoption, with both countries successfully reducing their reliance on fossil fuels and making significant strides towards achieving carbon-neutral economies.
Another interesting comparison can be made with China, which has emerged as the largest renewable energy market globally. China's commitment to clean energy is evident through its significant investments in solar and wind installations. The country has surpassed other nations regarding renewable energy capacity and has become a major player in the renewable energy sector.
Australia's energy mix is poised for further transformation in the near-term, with each state setting significant goals to embrace cleaner energy sources, such as:
- Queensland’s $62 billion, 10-year energy and jobs plan, including new renewable energy targets of 70% by 2032 and 80% by 2035.
- NSW’s target to halve emissions by 2030 and achieve net zero by 2050, by establishing a reliable, affordable and clean energy system.
- Victoria’s energy storage targets of at least 2.6 GW capacity by 2030 and 6.3 GW by 2035, a goal that aims to deliver around 12,700 jobs and $1.7 billion (net present value terms) to Victoria's economy by 2035.
Overall, it’s clear that Australia's energy mix is undergoing a significant transformation as the country seeks to reduce its carbon emissions and increase renewable energy adoption. Several factors are likely to shape its future, including government policies, advancements in technology, public awareness and pressure, and the influence of international trends.
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