Australia switching from gas to renewable energy
Demand in Australia for gas and coal – the long-established chief sources of energy production - has already passed its peak and will be overtaken over the next six years by renewable resources, according to a report by Rystad Energy.
Analysts say the capacity of solar and wind generating stations will by 2023 exceed and gas and coal-fired stations, though part of the energy produced will be lost because of infrastructure limitations.
Demand for gas-fired power generation hit a peak of 15 billion cu. m. (Bcm) three years ago, in 2017. Analysts believe that figure will sink to 6 Bcm by 2040.
Wind and solar power generation capacity is estimated to climb to 41.4 gigawatts (GW) by 2023, compared to 26.4 GW now.
Declining demand for gas on the Australian market could prove of benefit by boosting LNG exports and helping meet growing world demand. Gas could well become a “reserve fuel.”
Coal has long been the principal source of power generation in Australia, although over the past decade its share of energy supplies has plummeted by 80 percent to stand at 54 percent of the total.
National forecasts say 200 GW of “alternative” generating capacity will be brought on stream boosting production of renewable sources to 134 Terrawatt-hours (TWh) in 2026 from 50 TWh in 2020.
The country will also concentrate on creating pumped storage capacity to 10 GGW in 2040 from 1.4 GW in 2020.
Over the next five years a total of $3.7 billion will be allocated to energy generating projects.