Energy sector in Australia - statistics & facts
The energy sector in Australia has experienced significant changes over the past half-century, particularly in terms of the energy sources used. While most of the country still relies on fossil fuels, renewable energy, including wind and solar photovoltaics (PV), has grown in capacity and can now generate electricity cost-effectively. Drivers such as environmental concerns, economic adaptation, and advancements in engineering have all contributed to how energy is generated and consumed across the nation.
Most of the electricity in Australia is delivered via the National Electricity Market (NEM). Electricity is generally distributed via high-voltage transmission lines and converted to lower voltages for use in homes, offices, and factories. Moreover, many homes in Australia have installed their own small-scale solar photovoltaic (PV) systems. The total capacity of small-scale solar photovoltaic installations in Australia has increased over the past decade.
At the same time, natural gas consumption in Australia has also increased. While gas can be used for electricity generation, it is also used in homes for heating and cooking. Once the gas is sourced, it is processed and compressed before being used for electricity generation, stored for later use, or distributed through transmission pipes. Australian households or smaller commercial and industrial customers are supplied depressurized gas through smaller pipe networks.
The Australian Government is consequently incentivized to shift towards renewable sources to substitute this loss to the power grid. Renewable energy production has steadily increased over the past decade. Wind energy accounts for over 13 percent of the total energy generated from renewable sources in Australia.
Australia’s energy sources
The main sources of total energy production in Australia include coal, natural gas, oil, and renewables. While some of these commodities, particularly coal and LNG, are major components of Australia’s export market, these resources were also the leading primary energy sources consumed in Australia.Most of the electricity in Australia is delivered via the National Electricity Market (NEM). Electricity is generally distributed via high-voltage transmission lines and converted to lower voltages for use in homes, offices, and factories. Moreover, many homes in Australia have installed their own small-scale solar photovoltaic (PV) systems. The total capacity of small-scale solar photovoltaic installations in Australia has increased over the past decade.
At the same time, natural gas consumption in Australia has also increased. While gas can be used for electricity generation, it is also used in homes for heating and cooking. Once the gas is sourced, it is processed and compressed before being used for electricity generation, stored for later use, or distributed through transmission pipes. Australian households or smaller commercial and industrial customers are supplied depressurized gas through smaller pipe networks.
Australia’s energy transition is underway
The Australian Energy Market Operator (AEMO) has laid out a plan to phase-out Australia’s coal power stations within the next 20 years. The underlying reason for this is to support government emissions reduction policies. The public opinion on this issue is variable, but around a third of consumers wanted coal-fired power stations to be phased out in Australia even sooner than planned by 2030.The Australian Government is consequently incentivized to shift towards renewable sources to substitute this loss to the power grid. Renewable energy production has steadily increased over the past decade. Wind energy accounts for over 13 percent of the total energy generated from renewable sources in Australia.
