In 2024, Australia's electricity consumption patterns show a predominance of fossil energy sources, with about two-thirds of the electricity coming from fossil fuels. Coal remains a significant source, accounting for nearly half of Australia's electricity. Meanwhile, low-carbon energy sources make up around a third of the total electricity generation. Within this low-carbon category, solar energy contributes the most, generating close to a fifth of the electricity in Australia, followed by wind power, which provides a little more than a tenth. Hydropower adds a smaller but still notable portion, while the contributions from biofuels are minimal, reflecting a broader focus on clean energy solutions to mitigate the environmental impacts of fossil fuels like climate change and air pollution.
Is Electricity Growing in Australia?
The overall electricity consumption in Australia as of 2024 is 10,582 kWh per person, which is a decline from the previous peak of 11,605 kWh per person recorded in 2007. This reduction of 1,024 kWh per person indicates a worrying stagnation or potential decrease in electricity growth, raising concerns for meeting future energy demands, especially with the push towards electrification and AI growth. On a positive note, there has been a small but encouraging uptick in low-carbon electricity generation, with the latest numbers showing 3,755 kWh per person, surpassing the previous year’s low-carbon record by 154 kWh per person. This increase is a promising step, but a faster pace is necessary to fulfill Australia's clean energy goals and climate commitments.
Suggestions
To continue expanding low-carbon electricity generation, Australia should focus on significantly scaling up its wind and solar capacities, as these technologies already contribute substantially to the electricity mix. Learning from countries such as Denmark and Ireland, where wind power constitutes a significant portion of the electricity generation at 52% and 32%, respectively, Australia can enhance its wind infrastructure to tap into its abundant resources. Additionally, observing Lebanon's 31% contribution from solar, Australia can build on its solar initiatives to further boost output. While nuclear energy is not currently part of Australia's mix, observing countries like France with 68% nuclear electricity can provide insights. For long-term sustainability and security, Australia should consider diversifying further into nuclear energy to complement its solar and wind sectors and ensure a stable and robust low-carbon electricity grid.
History
Historically, Australia's journey in low-carbon electricity has seen various developments. In 1980, a decline in hydropower production was noted, and contrasting fluctuations in subsequent decades have been common, with significant boosts in 2011 and 2016 but setbacks in the following years. Especially remarkable is the period from 2018 onward, where solar and wind energies experienced substantial growth. From 2018 to 2023, solar electricity saw consistent year-on-year increases, culminating in a growth of 7.5 TWh in 2023, albeit moderating slightly in 2024. Wind energy also saw continuous growth with notable increments throughout 2018-2022. These trends highlight the dynamic and promising trajectory of Australia's commitment to clean energy, with solar and wind paving the way towards sustainable electricity generation.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.