Once disregarded as being any sort of threat to the energy status quo; renewable energy is rapidly changing the power generation sector in Australia.
According to a new report from the Energy Supply Association of Australia (ESAA), new renewable and gas power stations now account for more than 90 per cent of planned energy investment in the country.
Wind farms made up half of all new large-scale generation investment in 2012-13, compared to just 11 per cent in 2002-03.
The ESAA has acknowledged renewable energy has reined in the average wholesale price of electricity; but believes this isn’t necessarily a good thing. Others might argue the energy gravy train losing a little of its bloat is a very good thing indeed. The number of instances where the wholesale cost of electricity jumped above $300 per megawatt hour have greatly decreased in recent times. The consumer is yet to see any benefit as any savings have been overshadowed by network cost increases.
The ESAA raises the spectre of reliability issues possibly resulting from a sustained lower wholesale electricity price, but it has noted reliability in Australia’s electricity supply improved in 2011/12 according to the Australian Financial Review. The ESAA also says the value of the National Electricity Market has shrunk by more than $4 billion, or 40 per cent, in the last four years.
In its public statement regarding the report, the ESAA has avoided directly demonising home solar. A previous discussion paper on energy in Australia released by the organisation was criticised as being riddled with myths in this regard.
ESAA’s membership includes AGL, Origin, Energy Australia and other Big Energy participants.
The marked increase in renewable energy in Australia has also played a role in reducing power generation related carbon emissions. The pitt&sherry Carbon Emissions Index indicates electricity generation in the National Electricity Market (NEM) 2011-12 to 2012-13 decreased by 2.2 percent while emissions were down by 12.2 million tonnes carbon dioxide equivalent -equivalent to just under seven percent for the first full year under the carbon tax.
