Our Energy Future

Editor: Justin Healey ISBN 978 1 921507 05 2 Year 2009 Price: $20.95		Our Energy Future Volume 295, Issues in Society Over the past 30 years, total energy consumption in Australia has more than doubled, while energy consumption per person has increased by almost 40%. How will Australia manage future increases in energy consumption when there is also a pressing need to reduce greenhouse emissions and slow down climate change? The country’s energy needs will have to transition from diminishing and polluting non-renewable sources of energy to renewable sources. So what is the future of fossil fuels? Can the Mandatory Renewable Energy Target of 20% of Australia’s energy supply by 2020 make a real difference? Topics in Our Energy Future include: carbon capture and storage; ‘clean coal’ technology; peak oil; nuclear power; boosting Australia’s energy efficiency and productivity; and household energy-saving tips. The book also explores the major renewables in detail – solar, wind, hydroelectricity, geothermal, bio-energy, wave energy, and the potential of hydrogen power. Chapter 1 Energy Generation, Use and Efficiency Forms of energy generation, Emissions and the coal industry, Energy revolution vital, Carbon capture and storage, Burying coal fumes a 'smokescreen','Peak oil' drives urgent energy alternatives, All about gas, Energy efficiency, Boosting Australia's energy efficiency and productivity, Five ways to reduce your household's energy use, Household energy use soars. Chapter 2 Future of Fossil Fuels and Renewable Energy Empowering change: clean energy solutions to climate change, Renewable energy and alternate energy sources, The Australian government's renewable energy target, Sustainable energy has powerful future, The potential for renewable energy to provide baseload power in Australia, Solar energy facts, Demand for solar through the roof, Nuclear power could lose green tag, research shows, All about hydroelectricity, All about wind energy, Biomass – renewable energy from plant and animal matter, About geothermal, Hot rock industry stakes a claim, New wave of power in renewable energy market, The quest to make hydrogen the fuel of the future. Glossary; Fast Facts; Web Links; Index

		FAST FACTS from this volume
Over the past 30 years, total energy consumption in Australia has more than doubled, while energy consumption per person has increased by almost 40%. Between 2006 and 2020, as Australia’s economy continues to grow, our energy consumption is likely to increase by 26%. Australia currently relies on non-renewable energy from fossil fuel for 95% of its energy needs. Of this, coal provides 41%, oil 36% and gas 19%. Renewable sources provide around 5% of energy used in Australia. Our main renewable energy sources are bio-fuels (3%) and water (1%). Solar and wind energy account for only a tiny fraction of Australia’s energy use. There are currently no nuclear power plants in Australia. In its annual World Energy Outlook, the International Energy Agency also warns that oil prices could rise to $200 a barrel by 2030 as the demand for energy, driven by India and China, continues to soar. The International Energy Agency’s prediction that global demand for energy will increase by more than half by 2030 means that India and China will continue to rely on cheap coal reserves to meet their power needs. No single technology provides the solution to economically cutting carbon dioxide emissions from fossil fuel combustion. There are many ways in which CO2 emissions can be reduced, such as improving energy efficiency and switching to renewable and low-carbon methods of electricity generation. However, most scenarios suggest that these steps alone will not achieve the required reductions in CO2 emissions. Carbon capture and storage (CCS) will therefore be only one of a suite of solutions needed to reduce Australia’s greenhouse gas emissions. Energy efficiency means adding value to energy. The energy efficiency of an activity, a building or appliance, an industry, or an economy, is its ability to produce the same or better out-comes (or at least outputs) for less energy use. It is a measure of the value obtained per unit of energy consumed. We need to reduce global warming from fossil fuel combusion. Reducing our consumption of fossil helps reduce green-house gas emissions, and so put a brake on global warming. While reducing the carbon intensity of fossil fuel energy (e.g. through CO2 geosequestration), or of energy in general (e.g. through greater use of wind and solar power) would help us slow global warming, energy demand reduction can make a much greater contribution, because it reduces energy consumption at all points in the supply chain. During the period 1990-2004 Australia’s energy efficiency improved at a rate three times slower than the OECD average (0.3% p.a. compared to 0.9% p.a.). While Australia’s aggregate energy intensity fell by 17% between 1990 and 2004, this is largely due to changes in the structure of the economy away from the more energy intensive sectors like manufacturing and towards the services sector, rather than energy efficiency improvements. Amongst OECD countries, Australia has the third highest energy intensity with only Canada and US worse performers in what can also be understood as energy productivity – the amount of energy used to produce our goods and services. In 2007, the Government committed to ensuring that 20% of Australia’s electricity supply comes from renewable energy sources by 2020. Homes, businesses, community groups and schools are being encouraged to install solar power through various incentives such as grants, rebates and feed in tariffs that pay system owners for the electricity they produce. Australians understand that climate change is the biggest threat to our prosperity and our way of life. Australia is one of the nations most vulnerable to climate change. Renewable energy sources such as wind, solar and geothermal will be a key part of the climate change solution, and Australia has vast potential in these areas. The Renewable Energy Target (RET) will position the renewable energy sector to play a significant role in reducing Australia’s energy-related greenhouse gas emissions over the longer term. The Australian Government is also introducing an emissions trading scheme (ETS) to provide incentives to reduce green-house gas emissions in a cost-effective way. The ETS is the economically responsible way to tackle climate change because it will move us from the high emissions economy of the past to the low emissions economy of the future, at the lowest possible cost to families and business. The RET is a transitional measure to assist Australia’s transformation to a low emissions economy. The RET scheme will be phased out between 2020 and 2030 as the ETS matures. Electricity generation in Australia is dominated by coal-fired power stations, which contribute one third of Australia’s net greenhouse gas emissions. Significant change in the coal-fired energy sector will be required to substantially reduce emissions. The options are to introduce ‘clean coal’ technologies including geosequestration of CO2, and to substitute coal-fired power stations with renewable energy such as solar, wind, biomass, wave and geothermal. Moving to lower emission feedstock (e.g. brown to black coal; black coal to gas) would produce only a relatively moderate reduction in emissions. Coal is used to fuel ‘baseload’ power stations, which run con-tinuously and provide reliable continuous power outputs. Renewables are criticised as being unsuited to providing baseload power because of their intermittency. The technology is already available for generating reliable continuous electrical power from some renewables (e.g. biomass). However, the current power capacity is small. Further development in the renewables sector is required before any significant level of substitution of coal-fired power can take place. Research and development into solar thermal, photovoltaic, ocean and geothermal energy indicates very promising prospects for reliable and con-tinuous power from renewables within the next two to four decades. Overall, the cost of electricity from renewables is sig-nificantly higher than for coal and gas. However this differential disappears when the costs of carbon capture and sequestration are included in the price of coal and gas-based generation. Provided a suitable policy framework is in place, there appears to be no technical or financial impediment to renewables providing about 50% of all Australian electricity demand by 2040. In the longer term, current research and development suggests that a low-carbon electricity sector is attainable with total substitution of coal, with gas filling the role of change agent.

Over the past 30 years, total energy consumption in Australia has more than doubled, while energy consumption per person has increased by almost 40%. Between 2006 and 2020, as Australia’s economy continues to grow, our energy consumption is likely to increase by 26%.
Australia currently relies on non-renewable energy from fossil fuel for 95% of its energy needs. Of this, coal provides 41%, oil 36% and gas 19%.
Renewable sources provide around 5% of energy used in Australia. Our main renewable energy sources are bio-fuels (3%) and water (1%). Solar and wind energy account for only a tiny fraction of Australia’s energy use. There are currently no nuclear power plants in Australia.
In its annual World Energy Outlook, the International Energy Agency also warns that oil prices could rise to $200 a barrel by 2030 as the demand for energy, driven by India and China, continues to soar.
The International Energy Agency’s prediction that global demand for energy will increase by more than half by 2030 means that India and China will continue to rely on cheap coal reserves to meet their power needs.
No single technology provides the solution to economically cutting carbon dioxide emissions from fossil fuel combustion. There are many ways in which CO2 emissions can be reduced, such as improving energy efficiency and switching to renewable and low-carbon methods of electricity generation. However, most scenarios suggest that these steps alone will not achieve the required reductions in CO2 emissions. Carbon capture and storage (CCS) will therefore be only one of a suite of solutions needed to reduce Australia’s greenhouse gas emissions.
Energy efficiency means adding value to energy. The energy efficiency of an activity, a building or appliance, an industry, or an economy, is its ability to produce the same or better out-comes (or at least outputs) for less energy use. It is a measure of the value obtained per unit of energy consumed.
We need to reduce global warming from fossil fuel combusion. Reducing our consumption of fossil helps reduce green-house gas emissions, and so put a brake on global warming. While reducing the carbon intensity of fossil fuel energy (e.g. through CO2 geosequestration), or of energy in general (e.g. through greater use of wind and solar power) would help us slow global warming, energy demand reduction can make a much greater contribution, because it reduces energy consumption at all points in the supply chain.
During the period 1990-2004 Australia’s energy efficiency improved at a rate three times slower than the OECD average (0.3% p.a. compared to 0.9% p.a.).
While Australia’s aggregate energy intensity fell by 17% between 1990 and 2004, this is largely due to changes in the structure of the economy away from the more energy intensive sectors like manufacturing and towards the services sector, rather than energy efficiency improvements.
Amongst OECD countries, Australia has the third highest energy intensity with only Canada and US worse performers in what can also be understood as energy productivity – the amount of energy used to produce our goods and services.
In 2007, the Government committed to ensuring that 20% of Australia’s electricity supply comes from renewable energy sources by 2020. Homes, businesses, community groups and schools are being encouraged to install solar power through various incentives such as grants, rebates and feed in tariffs that pay system owners for the electricity they produce.
Australians understand that climate change is the biggest threat to our prosperity and our way of life. Australia is one of the nations most vulnerable to climate change. Renewable energy sources such as wind, solar and geothermal will be a key part of the climate change solution, and Australia has vast potential in these areas. The Renewable Energy Target (RET) will position the renewable energy sector to play a significant role in reducing Australia’s energy-related greenhouse gas emissions over the longer term.
The Australian Government is also introducing an emissions trading scheme (ETS) to provide incentives to reduce green-house gas emissions in a cost-effective way. The ETS is the economically responsible way to tackle climate change because it will move us from the high emissions economy of the past to the low emissions economy of the future, at the lowest possible cost to families and business. The RET is a transitional measure to assist Australia’s transformation to a low emissions economy. The RET scheme will be phased out between 2020 and 2030 as the ETS matures.
Electricity generation in Australia is dominated by coal-fired power stations, which contribute one third of Australia’s net greenhouse gas emissions. Significant change in the coal-fired energy sector will be required to substantially reduce emissions. The options are to introduce ‘clean coal’ technologies including geosequestration of CO2, and to substitute coal-fired power stations with renewable energy such as solar, wind, biomass, wave and geothermal. Moving to lower emission feedstock (e.g. brown to black coal; black coal to gas) would produce only a relatively moderate reduction in emissions.
Coal is used to fuel ‘baseload’ power stations, which run con-tinuously and provide reliable continuous power outputs. Renewables are criticised as being unsuited to providing baseload power because of their intermittency.
The technology is already available for generating reliable continuous electrical power from some renewables (e.g. biomass). However, the current power capacity is small. Further development in the renewables sector is required before any significant level of substitution of coal-fired power can take place. Research and development into solar thermal, photovoltaic, ocean and geothermal energy indicates very promising prospects for reliable and con-tinuous power from renewables within the next two to four decades.
Overall, the cost of electricity from renewables is sig-nificantly higher than for coal and gas. However this differential disappears when the costs of carbon capture and sequestration are included in the price of coal and gas-based generation.
Provided a suitable policy framework is in place, there appears to be no technical or financial impediment to renewables providing about 50% of all Australian electricity demand by 2040. In the longer term, current research and development suggests that a low-carbon electricity sector is attainable with total substitution of coal, with gas filling the role of change agent.