Electricity in Australia in 2023

In Australia, electricity consumption in 2023 is heavily reliant on fossil fuels, with coal and gas being the primary contributors. Almost two-thirds of the electricity (about 65%) comes from fossil energy sources, with coal alone providing nearly half (46%) and gas contributing a significant 17%. Low-carbon energy sources, including wind, solar, hydropower, and a small fraction from geothermal and biofuels, make up almost one-third (35%) of the electricity generation. Solar energy leads the clean energy segment by contributing nearly 16.5%, followed by wind at close to 12%, and hydropower at roughly 6%. The minor role of oil, making up just less than 2%, indicates that it plays a minimal part in the energy mix.

Suggestions

To increase low-carbon electricity generation, Australia can focus on expanding its existing solar and wind capacities, given their significant contribution to the current mix. These technologies have already proven effective in the Australian context and can be scaled up further. Looking at global examples, countries like Denmark and the United Kingdom have successfully implemented wind power, generating more than half (53%) and over a quarter (26%) of their electricity from wind, respectively. Additionally, adopting nuclear energy can be another strategy. France and Slovakia generate over 60% of their electricity from nuclear power, showing that a strong commitment to nuclear can drastically reduce dependency on fossil fuels. By learning from these countries, Australia can develop a more robust and sustainable electricity generation framework while combatting climate change and reducing air pollution.

History

Historically, Australia's journey in low-carbon electricity generation has seen various fluctuations. In the early 1980s, there was a decline in hydropower by about 2.4 TWh. Recent decades have shown a more substantial commitment to low-carbon sources: in 2011, hydropower increased significantly by 5.8 TWh, although it experienced declines in 2012 and 2014. Between 2015 and 2023, both solar and wind saw remarkable growth. Notably, solar energy generation rose by 3.4 TWh in 2018 and continued to surge, reaching an additional 7.5 TWh by 2023. Wind power also saw consistent growth, particularly between 2015 and 2022, indicating a successful expansion of these clean energy sources. By building on these advancements and investing further in low-carbon technologies, Australia can continue to move towards a more sustainable electricity future.

Electricity Imports and Exports

Balance of Trade

Data Sources