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Coal is abundant in Australia and considerably less expensive than other energy sources. As a result, Australian electricity prices are among the lowest in the world. Yet coal-fuelled power is also a major source of Australian greenhouse gas emissions. The Australian coal industry is investing more than $1 billion to help develop a new generation of low-emissions coal technologies – particularly those related to carbon capture and storage.
Demand for electricity has been growing quickly in Australia, and as the population and economy grows, current forecasts suggest the demand for power will continue to expand.
Fossil fuels such as coal and natural gas will continue to play an important role in Australia’s energy mix as we make the transition to a low-carbon economy. Carbon capture and storage technology has the potential to greatly reduce CO2 emissions related to electricity generation from fossil fuels.
Australians expect a safe, reliable supply of electricity, and coal and natural gas-fuelled power currently meet more than 90% of that demand.
At about 6% of electricity production, hydro energy is the leading renewable power source in Australia’s grid, but the environmental capacity to increase its supply is limited. Wind, solar, wave and geothermal power have great potential for Australia, but together they currently provide less than 0.5% of Australia’s retail electricity supply. As part of a multifaceted approach to addressing climate change, Australia should continue to invest in renewable energy technologies and support their commercial development. Learn more about the potential for a new energy mix.
1 Australian Bureau of Agricultural and Resource Economics
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