Electricity in Australia in 2023/2024

Over the past twelve months, from September 2023 to August 2024, Australia's electricity generation has predominantly relied on fossil energy, which constitutes approximately 63% of the total. Most of this comes from coal, which alone accounts for more than 46% of the country's electricity. Additionally, gas and oil contribute about 15% and just over 1% respectively. In contrast, low-carbon energy sources, which include hydropower, wind, and solar, make up around 37% of electricity generation. Solar energy plays a considerable role, contributing nearly 19% of electricity, while wind power adds about 12%, and hydropower represents approximately 5%. These figures suggest a significant reliance on fossil fuels and highlight the growing but still insufficient role of low-carbon energy in reducing carbon emissions.

Suggestions

To further increase low-carbon electricity generation, Australia has substantial opportunities to expand its wind and solar capacities, as these sources are already contributing significantly to the electricity mix. Lessons can be learned from Denmark, which generates an impressive 59% of its electricity from wind power, illustrating the potential for wind energy, especially in areas with excellent wind resources like Australia. Additionally, nuclear energy can play a pivotal role in transitioning to a more sustainable grid, as demonstrated by countries like France where nuclear accounts for 67% of electricity generation. If suitable conditions and public policy support are met, investing in nuclear energy could provide Australia with a steady, reliable, and carbon-free electricity supply, complementing intermittent sources like wind and solar.

History

Australia's history of low-carbon electricity generation shows a mix of fluctuations and promising growth. During the 1980s and early 2010s, there were several notable declines in hydroelectricity, such as in 1980 and 2014, which saw reductions of about 2.4 and 4.6 TWh, respectively. Despite these fluctuations, recent years have marked significant progress, particularly from 2018 onwards, driven by impressive gains in both solar and wind power. Solar electricity generation ramped up markedly between 2018 and 2023, with consistent annual increases, peaking at a 7.5 TWh rise in 2023. Wind energy also saw substantial annual growth, contributing around 3 to 4 TWh of additional electricity from 2018 to 2021. This trajectory underscores the potential for sustained expansion of these clean energy sources, paving the way for a greener electricity future in Australia.

Electricity Imports and Exports

Balance of Trade

Data Sources