Industry is the largest user of electricity with 33% of electricity consumption, followed by services (27%) and households (26%).
China is the world's largest consumer of electricity, using over 5.934 trillion kWh of energy annually. China accounts for almost one-quarter of global energy consumption. The country is known for running mainly on coal but has also shifted to natural gas and renewable energy sources in recent years.
Most of the growth in energy use in 2018–19 occurred in the mining sector, which rose by 11 per cent, mainly because of increased natural gas and electricity consumption to support liquefied natural gas (LNG) exports. Transport remained the largest user of energy and grew by 2 per cent in 2018–19.
In 2018–19, the transport sector used almost half (47%) of the total energy used in NSW and the ACT–up from 43% in 2008–09. The industrial sector used 33% of energy, with the residential and commercial sectors accounting for 11% and 9% respectively.
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).
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.
In the financial year 2022, electricity usage across Australia amounted to just over 189 terawatt hours.
The industrial sector accounts for 33% of all the electricity used in the world (the largest sector for energy consumption is residential housing, followed by commercial businesses).
Electricity usage in Australia
New South Wales consumed the most electricity in Australia during the 2019 fiscal year, amounting to approximately 77.3 terawatt hours. Queensland was next, with an estimated electricity consumption of 65.14 terawatt hours.
Coal accounts for about 75 per cent of Australia's electricity generation, followed by gas (16 per cent), hydro (5 per cent) and wind around (2 per cent).
Fueling China's Rise
China's industrial sector accounts for two-thirds of the country's total energy consumption. In particular, manufacturing drives a large proportion of China's energy demand, with much of the energy coming from burning coal.
Residential, commercial, and industrial customers each account for roughly one-third of the nation's electricity use.
Heating and cooling systems are typically the largest energy user in homes.
Put simply, Australia consumes more oil than it did a decade ago, produces less, and for various reasons, both commercial and political, the country's emergency reserves – which should be equivalent to at least 90 days of net oil imports – are the lowest of any International Energy Agency member country.
Globally we see that coal, followed by gas, is the largest source of electricity production. Of the low-carbon sources, hydropower and nuclear make the largest contribution; although wind and solar are growing quickly.
Wholesale energy costs, which account for about a third to half of final bills, continue to be “the predominant driver of increased retail electricity prices”, the AER said. State and federal bill relief measures will take some of the sting out of the increases.
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 Western Australia, four large-scale thermal energy from waste facilities proposing to use residual waste as a fuel have been approved. To date, none have commenced operation. The largest, the Kwinana Waste to Energy Project , will have the capacity to process up to 400,000 tonnes of residual waste each year.
Alinta Energy's assets include the Braemar Power Station in Queensland, and the Loy Yang B Power Station and Bairnsdale Power Station in Victoria. The company also owns the Port Hedland, Newman, Pinjarra, and Wagerup power stations in Western Australia along with the Goldfields Gas Pipeline.
Energy networks are natural monopolies subject to strict economic regulation. In most cases, they are governed by the National Electricity Rules which are made by the Australian Energy Market Commission under the National Electricity Laws. All major Australian gas networks are governed by National Gas Rules.