Australia's abundant, high quality energy resources are widely distributed across the country. With the exception of oil, these resources are expected to last for many more decades, even as production increases.
New gas, wind and battery projects forestalled previously predicted supply gaps in South Australia in 2023-24 and Victoria in the following year. But so-called reliability gaps could emerge from 2025 onwards with a handful of coal-fired power stations dropping out of the national electricity market.
Most of our electricity is produced from burning black and brown coal at large power stations. Natural gas is the third highest energy source in Australia (after oil and coal).
Homes and businesses in every state on Australia's eastern seaboard are at risk of electricity shortages from 2027 as looming closures of several coal-fired power stations collide with delays in building crucial new gas and clean energy projects to replace them.
Survey reveals Australians waste $222 million each year on energy.
China consumes by far the most electricity of any country in the world, with more than 7.8 terawatt-hours consumed in 2021.
In 2022, we saw significant progress for clean energy, albeit slower than 2021. Renewable energy accounted for 35.9 per cent of Australia's total electricity generation, up from 32.5 per cent in 2021. That figure has more than doubled since 2017, when renewable energy accounted for just 16.9 per cent of generation.
The busy Sydney harbour or the skyline of metropolitan Melbourne make it seem unbelievable that nearly 40% of Australia's land is uninhabitable. One reason behind this large landmass being so desolate is the shortage of rainfall. More than two-third part of the country only receives less than 500 mm annual rain.
One crucial factor contributing to high electricity prices is the aging infrastructure across the country. Australia's energy infrastructure, including power plants, transmission lines, and distribution networks, requires substantial investment to maintain reliability and meet growing demand.
In 2021, renewable energy accounted for 29% of Australia's total electricity generation – the highest on record. Key sources were solar (12% - up 31%), wind (10% - up 19%) and hydro (6%) (Source: Department of Climate Change, Energy, the Environment and Water). Most of Australia's energy production is exported.
Australia's energy needs are still mostly met by fossil fuels. Australia's coal resources are used to generate three-quarters of domestic electricity; natural gas is found in many homes and is increasingly used in industry; and Australia's transport system is heavily dependent on oil, some of which is imported.
Australia hosts 33% of the world's uranium deposits and is the world's third largest producer of uranium after Kazakhstan and Canada. Australia's extensive low-cost coal and natural gas reserves have historically been used as strong arguments for avoiding nuclear power.
Electricity price increases: Australia sheds title of having the world's highest costs as European charges soar. Australians love being top of the world — but not when it comes to electricity costs. It's a title we have finally lost, as power prices in other parts of the world rise at astronomical rates.
By 2050, it is estimated renewable energy will supply the majority of the National Energy Market's (NEM) electricity needs, with significant reductions continuing for coal and fossil fuel plants.
Electricity usage in Australia
There was an overall decrease in the consumption of electricity in Australia from financial year 2010 onwards. New South Wales consumed the most electricity in Australia during the 2019 fiscal year, amounting to approximately 77.3 terawatt hours.
Origin Energy, AGL and EnergyAustralia are the largest energy companies in Australia. Known as the 'big three', each has a significant share in the residential electricity and gas markets of New South Wales and South Australia.
Gas costs less per MJ in comparison to the amount you'll pay per kWh in electricity. For example, in NSW you'll pay roughly: 30 cents per kWh of electricity. 4 cents per MJ of gas.
Queensland had the cheapest average energy bill, costing $276 per month. Victoria was the second cheapest for energy, costing $290 on average per month. New South Wales was the second most expensive state for energy, costing $313 per month. The most expensive state was South Australia, costing $322 per month.
CSIRO and AEMO's GenCost 2021-22 report released today confirmed that wind and solar are the cheapest source of electricity generation and storage in Australia.
Three major economic centres are set to become uninhabitable by the end of the century, with global temperatures on track to warm by 2.7C. Darwin, Broome and Port Hedland are predicted to be pushed outside the “human climate niche” — that is, the temperature and humidity conditions in which humans can survive.
Australia's exceptional aridity is the result of a unique combination of factors. Cold ocean currents off the west coast means there is little evaporation to form rainclouds, while the Great Dividing Range that runs down Australia's east coast prevents rain from penetrating far inland.
Reasons for leaving permanently
It has been argued that, for Australian-born persons, emigration is more likely to be a result of increasing internationalisation of labour markets and increasing global demand for skilled workers.
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.
Nuclear energy was banned less than two decades ago in Australia, a decision that has cost the nation significant global investment and scientific collaboration on new nuclear technologies. Nuclear power was prohibited in Australia in 1998, horsetraded for the passage of legislation centralising radiation regulation.
The Australian government released its Long Term Emissions Reduction Plan to achieve net zero emissions by 2050. The Plan aims at reaching a net zero economy through a technology-based approach, whilst protecting relevant industries, regions and jobs.