Power to us
With new-build wind and solar farms cheaper than gas and coal, the economics are now favouring renewable energy.
Australia’s energy sector is widely regarded as a mess. Soaring electricity prices, questions about how to rein them in, ageing coal-fired power generation, a lack of government support for renewables and policy uncertainty present challenges to both consumers and businesses.
The fossil fuel sector
Polluting fossil-fuel generators contribute most of Australia’s power generation, despite fast growth in the share of renewables. Coal (63 per cent), natural gas (18 per cent) and oil (2 per cent) are all part of the mix. The three big generators (Origin, AGL and EnergyAustralia) rank among Australia’s top four carbon polluters.
The current political climate is growing increasingly pro-coal despite the fuel being in structural decline. Politicians are staking a lot on “clean coal” carbon capture and storage even though it’s highly uncompetitive and barely feasible. “Ultra-supercritical” efficient coal-burning technology is already here but it cuts carbon emissions by only a modest 15 per cent.
In terms of climate change implications, Australia is a signatory to the Paris Agreement and has agreed to a greenhouse gas emission reduction target of 26–28 per cent between 2005
