Renewable energy in Australia

BP Solar

BP has been involved in solar power since 1973 and its subsidiary, BP Solar, is now one of the world's largest solar power companies with production facilities in the United States, Spain, India and Australia. BP Solar is involved in the commercialisation of a long life deep cycle lead acid battery, jointly developed by the CSIRO and Battery Energy, which is ideally suited to the storage of electricity for renewable remote area power systems (RAPS).

Edwards

Edwards first began manufacturing water heaters in Australia in 1963. Edwards is now an international organisation which is a leader in producing hot water systems for both domestic and commercial purposes using solar technology. Edwards exports to Asia, the Pacific, the Americas, Europe, Africa and the Middle East.

Eurosolar

Eurosolar was first formed in 1993, with an aim of providing photovoltaic systems to the masses. It focuses on Solar Power in multiple Australian capitals, in cooperation with the Clean Energy Council they continue to install panels all around Australia.

Origin Energy

Origin Energy is active in the renewable energy arena, and has spent a number of years developing several wind farms in South Australia, a solar cell business using technology invented by a team led by Professor Andrew Blakers at the Australian National University, and geothermal power via a minority shareholding stake in Geodynamics.

Pacific Hydro

Pacific Hydro is an Australian company that specialises in electricity generation using renewable energy. Its focus is on hydroelectricity and wind power. Power stations owned by Pacific Hydro include wind farms: Codrington Wind Farm, Challicum Hills Wind Farm, Portland Wind Project and Hydro power: Eildon Pondage Power Station, Ord River Hydro Power Station and The Drop Hydro.

Snowy Hydro Limited

Snowy Hydro Limited, previously known as the Snowy Mountains Hydro-Electric Authority, manages the Snowy Mountains Scheme which generates on average around 4500 gigawatt hours of renewable energy each year, which represented around 74% of all renewable energy in the National Electricity Market in 2005. The scheme also diverts water for irrigation from the Snowy River Catchment west to the Murray and Murrumbidgee River systems.

Solahart

Solahart manufactured its first solar water heater in 1953, and products currently manufactured by Solahart include thermosiphon and split system solar and heat pump water heaters. These are marketed in 90 countries around the world and overseas sales represent 40% of total business. Solahart has a market share of 50% in Australia.

Solar Systems

Solar Systems was a leader in high concentration solar photovoltaic applications, and the company built a photovoltaic Mildura Solar concentrator power station, Australia. This project will use innovative concentrator dish technology to power 45,000 homes, providing 270,000 MWh/year for A$420 million.

Solar Systems has already completed construction of three concentrator dish power stations in the Northern Territory, at Hermannsburg, Yuendumu, and Lajamanu, which together generate 1,555 MWh/year (260 homes, going by the energy/home ratio above). This represents a saving of 420,000 litres of diesel fuel and 1550 tonnes of greenhouse gas emissions per year. The total cost of the solar power station was "A$7M, offset by a grant from the Australian and Northern Territory Governments under their Renewable Remote Power Generation Program". The price of diesel in remote areas is high due to added transportation costs: in 2017, retail diesel prices in remote areas of the Northern Territory averaged $1.90 per litre. The 420,000 litres of diesel per year saved by these power stations in the first decade of operation would thus have cost approximately $8,000,000.

Wind Prospect

Wind Prospect developed the 46 MW Canunda Wind Farm in South Australia, which was commissioned in March 2005. A second South Australian wind farm, Mount Millar Wind Farm, was commissioned in January 2006 and this provides a further 70 MW of generation. More recently, a third wind farm has reached financial close for Wind Prospect in South Australia. This is the 95 MW Hallett Wind Farm which is expected to be fully commissioned late in 2008.

Government policy

There are a number of government policies in place in Australia that influence the development of renewable energy.

Mandatory Renewable Energy Target (MRET) schemes

A key policy encouraging the development of renewable energy in Australia includes Mandatory Renewable Energy Target (MRET) schemes at both Commonwealth and State levels. In 2001, the Howard Government introduced an MRET of 9,500 GWh of new renewable energy generation by 2010. This target has since been revised with the Gillard Government introducing in January 2011 an expanded target of 45,000 GWh of additional renewable energy between 2001 and 2020. This MRET has been split into a small scale renewable energy scheme (SRES) and large scale renewable energy target (LRET) components to ensure that adequate incentive exists for large scale grid connected renewable energy.

A number of states have also implemented their own renewable energy targets independent of the Commonwealth. For example, the Victorian Renewable Energy Target Scheme (VRET) mandated an additional 5% of Victoria's "load for renewable generation", although this has since been replaced by the new Australian Government LRET and SRES targets. South Australia achieved its target of 20% of renewable supply by 2014 three years ahead of schedule (i.e. in 2011) and has subsequently established a new target of 33% to be achieved by 2020.

Renewable Energy Certificates Registry

The Renewable Energy Certificates Registry (REC-registry) is an internet based registry system that is required by the Australian Renewable Energy (Electricity) Act 2000 (the Act). The REC-registry is dedicated to: maintaining various registers (as set in the Act); and facilitating the creation, registration, transfer and surrender of renewable energy certificates (RECs).

Carbon pricing

In 2012, the Gillard government implemented a carbon price of $23 per tonne to be paid by 300 liable entities representing the highest business emitters in Australia. The carbon price will increase to $25.40 per tonne by 2014–15, and then will be set by the market from 1 July 2015 onwards. It is expected that in addition to encouraging efficient use of electricity, pricing carbon will encourage investment in cleaner renewable energy sources such as solar and wind power. Treasury modelling has projected that with a carbon price, energy from the renewables sector is likely to reach 40 percent of supply by 2050.

Analysis of the first 6 months of operation of the carbon tax have shown that there has been a drop in carbon emissions by the electricity sector. It has been observed that there has been a change in the mix of energy over this period, with less electricity being sourced from coal and more being produced by renewables such as hydro and wind power. The government at the time presented this analysis as an indicator that their policies to promote cleaner energy are working.

The carbon pricing legislation was repealed by the Tony Abbott-led Australian Government on 17 July 2014. Since then, carbon emissions from the electricity sector have increased.

Clean Energy Finance Corporation

The Australian Government has announced the creation of the new 10 billion dollar Clean Energy Finance Corporation which will commence business in July 2013. The goal of this intervention is to overcome barriers to the mobilisation of capital by the renewable energy sector. It will make available two billion dollars a year for five years for the financing of renewable energy, energy efficiency and low emissions technologies projects in the latter stages of development. The government has indicated that the fund is expected to be financially self-sufficient producing a positive return on investment comparable to the long term bond rate.

Feed-in tariffs

Feed-in tariffs have been enacted on a state by state basis in Australia to encourage investment in renewable energy by providing above commercial rates for electricity generated from sources such as rooftop photovoltaic panels or wind turbines. The schemes in place focus on residential scale infrastructure by having limits that effectively exclude larger scale developments such as wind farms. Feed-in tariffs schemes in Australia started at a premium, but have mechanisms by which the price paid for electricity decreases over time to be equivalent or below the commercial rate. All the schemes now in place in Australia are "net" schemes whereby the householder is only paid for surplus electricity over and above what is actually used. In the past, New South Wales and the Australian Capital Territory enacted "gross" schemes whereby householders were entitled to be paid for 100% of renewable electricity generated on the premises, however these programs have now expired. In 2008 the Council of Australian Governments (COAG) agreed to harmonise the various state schemes and developed a set of national principles to apply to new schemes. Leader of the Australian Greens, Christine Milne, has advocated a uniform national "gross" feed-in tariff scheme, however this proposal has not been enacted.

Subsidies to fossil fuel industry

There is dispute about the level of subsidies paid to the fossil fuel industry in Australia.

The Australian Conservation Foundation (ACF) argues that according to the definitions of the Organisation for Economic Co-operation and Development (OECD), fossil fuel production and use is subsidised in Australia by means of direct payments, favourable tax treatment, and other actions. It is suggested these measures act as impediments to investment in renewable energy resources. Analysis by the ACF indicates that these provisions add up to a total annual subsidy of A$7.7 billion, with the most significant component being the Fuel Tax Credits program that rebates diesel fuel excise to many business users.

This analysis is disputed by the Institute of Public Affairs (IPA) who argue that the ACF's definition of a subsidy differs from that of the OECD and that the fuel tax rebate schemes are in place to ensure that all producers are treated equally from a tax point of view. However, the IPA acknowledges that regardless of perceived issues with the ACF analysis, some level of fossil fuel subsidy is likely in existence.

Ratification of the Kyoto Protocol

Australia ratified the Kyoto Protocol in December 2007 under the then newly elected Prime Minister Kevin Rudd. Evidence suggests Australia will meet its targets required under this protocol. Australia had not ratified the Kyoto Protocol until then, due to concerns over a loss of competitiveness with the US, which also rejects the treaty.

Public opinion and action

Survey results suggest that there is considerable public support for the use of renewable energy and energy efficiency in Australia. In one recent survey, 74% of respondents favoured a "greenhouse strategy based mainly on energy efficiency and renewable energy, and 19% favoured an "approach that focuses mainly on nuclear power and clean coal technologies."

The Australian results from the 1st Annual World Environment Review, based on a survey of 1,007 people in 2007, found that:

88% of Australians think that the Government should do more to increase the use of solar power. 78% say the government should do more to boost wind power, 58% hydro power, 50% tidal power, and 38% geothermal power, while only 25% think that the Government should do more to increase use of nuclear power.

84% of Australians think that the Government should make it easier for people to buy renewable electricity.

89% think that all electricity should contain a minimum 25% of power generated from renewable energy sources. Only 3% disagree.

82% think that the Government should make it easier for people to buy solar panels.

80% think that the Government should make it easier for people to buy energy efficient products, such as energy-saving light globes, water-saving shower heads and insulation etc.

85% think that the Government should raise national fuel efficiency standards for cars and light trucks.

87% think that the Government should do more to increase the number of cars that don't use petrol.

There is a considerable movement known as The Transition Decade to transition Australia's entire energy system to renewable by 2020.

Voluntary uptake of GreenPower, a Government program initiated in 1997 whereby people can pay extra for electricity that is generated from renewable sources, increased from 132,300 customers in 2005 to 904,716 customers in 2009.

Future prospects

The percentage of renewable resources that could be achieved by 2020 has evolved from 25% in 2007 to 100% in 2010:

2007

Several reports have discussed the possibility of Australia setting a renewable energy target of 25% by 2020. Combined with some basic energy efficiency measures, such a target could deliver 15,000 MW new renewable power capacity, $33 billion in new investment, 16,600 new jobs, and 69 million tonnes reduction in electricity sector greenhouse gas emissions.

2008

Greenpeace released a report in 2008 called "Energy [r]evolution: A Sustainable Energy Australia Outlook", detailing how Australia could produce 40% of its energy through renewable energy by 2020 and completely phase out coal-fired power by 2030 without any job losses.

David Spratt and Phillip Sutton argue in their book Climate Code Red that Australia (as part of a concerted global effort) needs to reduce its greenhouse gas emissions down to zero as quickly as possible so that carbon dioxide can be drawn down from the atmosphere and greenhouse gas emissions can be reduced to less than 325 ppm CO₂-e, which they argue is the upper "safe climate" level at which we can continue developing infinitely. They outline a plan of action which would accomplish this.

2010

Australia could entirely transition to renewable energy within the 2010 decade by building 12 very large scale solar power plants (3500 MW each), which would provide 60% of electricity used, and 6500 7.5 MW wind turbines, which would supply most of the remaining 40%, along with other changes, according to the "Zero Carbon Australia Stationary Energy Plan", for a cost of A$370 billion, about $8/household/week over a decade to create an infrastructure that will last a minimum of 30 to 40 years. Biofuel use is proposed to increase from 2 PJ used in 2010 to 51 PJ/year for modes of transportation not easily electrified, along with some hybrid vehicles. The cost of oil, post peak oil, is increasing, and without converting now to 100% renewable sources the world will pay an additional USD$8 trillion over the next 25 years – and then convert to 100% renewable.

Recently an uptake of Third Party ownership models for small to mid-scale solar photovoltaic systems has been seen in Australia mirroring developments in the same direction in the US with over 70% of all new PV systems installed under such models in California, Colorado and Arizona. In Australia the Solar Power Purchase Agreement approach is pursued under the term Solar Sponsoring

2015

The Australian Federal Government ordered the $10 billion Clean Energy Finance Corporation to refrain from any new investment in wind power projects, with the explanation that the government prefers the corporation to invest in researching new technologies rather than the "mature" wind turbine sector.