Australia Energy Market: Challenges and Proposed Solutions

This report discusses the current situation of Australia's energy market, including rising challenges that impact the cost and dependability of energy supply. It covers topics such as clean and black coal technologies, petroleum use for power generation, nuclear power overview, and Elon Musk's work in South Australia. The report proposes solutions to overcome power shortage, including efficiency of energy, shifting of demand, reduction of demand, storage, and new generation. It also discusses the role of Australia in providing energy commodities.

Table of Contents
LIST OF TABLES........................................................................................................................................ 2
CHAPTER I................................................................................................................................................ 2
1.0 INTRODUCTION ............................................................................................................................. 2
CHAPTER II .............................................................................................................................................. 3
2.0 CURRENT SITUATION OF AUSTRALIA ENERGY MARKET ............................................................... 3
2.0.1 The Critical Problem ............................................................................................................... 4
2.0.2 Liddell Power Plant ................................................................................................................ 4
CHAPTER III ............................................................................................................................................. 5
3.0 DIFFERENCE IN TECHNOLOGIES OF CLEAN AND BLACK COAL: ..................................................... 5
3.0.1 Clean Coal: ............................................................................................................................. 5
3.0.2 Black Coal: .............................................................................................................................. 6
CHAPTER IV ............................................................................................................................................. 7
4.0 PETROLEUM USE FOR POWER GENERATION IN AUSTRALIA: ....................................................... 7
CHAPTER V .............................................................................................................................................. 8
5.0 NUCLEAR POWER OVERVIEW ....................................................................................................... 8
CHAPTER VI ............................................................................................................................................. 9
6.0 NATIONAL ENERGY MARKET OPERATOR: ..................................................................................... 9
CHAPTER VII .......................................................................................................................................... 10
7.0 ELON MUSK’S WORK IN SOUTH AUSTRALIA: .............................................................................. 10
7.0.1 Future Plans To Conserve Energy ........................................................................................ 11
CHAPTER VIII ......................................................................................................................................... 11
8.0 PROPOSED SOLUTIONS TO OVERCOME POWER SHORTAGE ...................................................... 11
8.0.1 Victoria 2020 And Beyond ................................................................................................... 11
8.0.2 Efficiency Of Energy ............................................................................................................. 12
8.0.3 Shifting Of Demand .............................................................................................................. 12
8.0.4 Reduction Of Demand .......................................................................................................... 12
8.0.5 Behind The Generation Of Meter. ....................................................................................... 13
8.0.6 Storage ................................................................................................................................. 13
8.0.7 New Generation ................................................................................................................... 14
CHAPTER IX ........................................................................................................................................... 15
9.0 ROLE OF AUSTRALIA IN PROVIDING ENERGY COMMODITIES: ................................................... 15
9.0.1 Thermal Coal ........................................................................................................................ 16

9.0.2 LNG ....................................................................................................................................... 17
CHAPTER X ............................................................................................................................................ 17
10.0 ANALYSIS AND DISCUSSION: ..................................................................................................... 17
10.0.1 How Can We Apply the Energy Objectives to a Particular Project? .................................. 18
10.0.1.0 First Element: .................................................................................................................. 18
10.0.1.2 Third Element: ................................................................................................................. 18
CHAPTER XI ........................................................................................................................................... 19
CONCLUSION ..................................................................................................................................... 19
REFERENCES: ..................................................................................................................................... 31
LIST OF FIGURES
Figure 1 Energy Commodity Export Values (Source Credit: Department of Industry, Innovation
and Science) ............................................................................................................................. 15
Figure 2 Energy Prices fluctuation graph Source Credit: Bllomberg HIS:RBA ......................... 16
Figure 3 Seaborne Thermal Cost Production Costs (Source Credit: AME Group) ................... 16
Figure 4 Australian Liquification Capacity (Source Credit: AEMO) .......................................... 17
LIST OF TABLES
Table 1 General Investment in National Energy Market ......................................................... 15
CHAPTER I
1.0 INTRODUCTION
The world’s second-biggest exporter of natural gas suffering from severe crises that they even
can’t supply gas to facilitate their own citizens. The world’s richest economies of natural gas
are Australia and USA. The way of managing the resources is the main difference in these
nations. In Australia energy is getting very expensive. The National power system is in a
critical stage that is why the whole nation is suffering from high rates of electricity and gas.
This is a consequence of federal government’s and state government’s uncertain and spit
policies. There was no obvious and constant path to decrease the emission. This uncertain

policy had badly impacted the energy system of Australia and caused considerable instability.
The main points are the stability of the National electricity grid, increase the cost to supply
the gas and new generation’s investment.
1.0.1 Changes to the Report:
We had to change the few outputs and solutions that we arrived in our Advanced Engineering
Project 1. This is due to few changes that have been observed in the Australian National
Energy Statistics. For instance, one of the power stations which was announced and thought
to really help in the additional power production in the state in 2017 was shut down in the
late 2017 due to environmental concerns. Hence, in this report, we have made the changes
in relation to the current statistics.
CHAPTER II
2.0 CURRENT SITUATION OF AUSTRALIA ENERGY MARKET
Currently, there are many rising challenges in Australian energy market that have a high
impact on the cost and dependability of the supply of energy. To address all these issues is
difficult; it needs combine act by the Australian government, regulatory authorities, and state
to offer the most suitable incentive in energy markets. The difficult interaction of government
and private businesses affect the energy supply to residential areas and businesses within the
country. The markets that are affected by these interactions are under the approach of
national co-operative between the governments and engage regulators of state, local and
district. The factors like condition of atmosphere and market, the supply of energy in each
state and international market’s exposure are affected the Australian energy markets (Pears,
2017).
In 2017, many problems have been addressed which were caused by the outdated policies of
energy. The gas industry is running with the help of Australian industry. The policy of climate
is urgent but suffering from controversies between the key policymakers. The export of fossil
fuel is at risk from the international pressure (Dears, 2017). The goal and objectives are
obvious: supply economical, reliable and provide energy services with low carbon to the
business area and households. How to deal and interpret these objectives is also a major

problem. Some see opportunities while rest see risk in it. Investors are eager to protect their
powerful investments. In the meantime, different opponents are rising from many areas and
consumers shout for fairness, right, choice and justice.
2.0.1 The Critical Problem
The problems of energy in Australia is not caused by the processes of the free market but
dominant policies of energy accepted by the liberal parties and labor force. There are three
significant results achieved by the energy policies:
1. Elimination of usage of fossil fuels by increasing energies of wind and solar.
2. To reduce the emission of carbon dioxide power plants from coal-fired are closed.
3. In the New South Wales and South Australia, the expansion of natural gas is
prohibited.
The shutdown of electricity in South Australia that kept the whole area without electrical
energy for more than 28 hours was caused by too dependable on wind energy. The closing of
last power plant of coal-fired also affects the state. The report of 2014 submitted by the
operator of Australian energy market (that runs the energy market on a national level) and
Electranet (that runs the transmission grid of electricity on a national level) expected that if
policies of decarbonization continue than South Australia will suffer the blackout.
In spite of the considerable problem, the government of labor in South Australia still insists
to keep on the wind energy with the aim to supply 50 percent of the district’s electricity. The
state government is taking action because due to the shortage of natural gas industries are
closing their plants. Warning bells for the shortage of power have been ringing because many
power stations have been closed in Australia.
2.0.2 Liddell Power Plant
Regulators of Australian energy market predicts if the energy of AGL is not succeeded to
complete all the phases of its plan after the shutdown of Liddell power plant, the New South
Wales will need extra 900 megawatts of dispatchable generation capacity. AGL decided to
close the Liddell power plant in 2022 and change the coal plant with renewable, storage of

battery and for peak period gas power will use. The alliance of Turnbull government and the
public wanted AGL to increase the Liddell operating life for at least 5 to 7 years.
Canberra request is refused by AGL and continue with their own plan. To replace the Liddell
power plant the additional capacity will come from Newcastle power plant (300 MW), site of
New South Wales, coal plant of Bays water (110 MW) and from renewable (1800 MW). Till
AGL successfully roll out all phases of its plan, the need for additional generation capacity in
NSW is required. After the closure of Liddell power station there is still a possibility of a
shortage of electricity, so AGL should be fully committed.
To decrease the risk of power shutdown, further 900 MW of dispatchable resources of power
will be added to the market of electricity by 2027-8. During the peak hours, to supply the
reliable electricity to the different region is only possible when additional dispatchable power
generation is added. The 1600 MW coal power plant, Hazelwood, Victoria’s has been closed
also. Removed 6% Australia’s base load and 25% Victoria’s. the development to supply the
natural gas to different parts of Australia is not possible with few coal power plants.
CHAPTER III
3.0 DIFFERENCE IN TECHNOLOGIES OF CLEAN AND BLACK COAL:
3.0.1 Clean Coal:
The term "Clean coal" indicates the extraction of carbon emissions by the process of burning
coals and the storing process which works under the earth. (australian atlas of mineral
resources, n.d.). Carbon captivation and capacity work, yet is costly to fabricate or to retrofit
onto old plants (Lenzen, 1998). We'd have to complete significantly more captivating and
storing it to have any kind of effect in engaging overall carbon outflows. There are different
disadvantages related to consuming coal, as well (Riedy & Diesendorf, 2003). Throughout
recent years, "clean coal" has been a political pipe dream. The thought coal—our most
seasoned, dirtiest vitality source—could be reshaped in a way that gives us a chance to
continue utilizing it without doing as such much damage to the earth (Turner, 2001).

The expression "clean coal" has been connected to numerous advancements, going from wet
scrubbers, which expel sulfur dioxide from the coal-created gas, to coal washing, which expels
soil and shakes from coal before it's sent to a production line. Speculatively, the term could
be connected to anything that makes coal plants more efficient, like modernization effect
(Van Dijk et al., 2001). Be that as it may, when individuals discuss clean coal nowadays, they're
normally looking at something many refer to as carbon captivation and capacity (Turner,
2001).
3.0.2 Black Coal:
The black coal is called black considering its dark shading. It fluctuates from having a brilliant,
sparkling gloss to being exceptionally dull and from being moderately difficult to delicate. It
has higher vitality and lowers dampness content than dark colored coal (Bird, Haynes, &
McAneney, 2014). Well known eras of are Permian age (around 250 million years of age),
however, bring down rank, more youthful stores of Triassic, Jurassic and Cretaceous ages are
likewise imperative (Clifton & Boruff, 2010). Permian dark coal from New South Wales and
Queensland is sent out in huge amounts to Japan, Europe, South-East Asia, and the Americas
(Lenzen & Murrary, 2001). The real utilization of the black coal is for creating power in control
stations, where it is thumped and consumed to warm steam-producing boilers. Coal utilized
for this procedure is called steaming coal. In 2008 77% of the power created in Australia was
delivered by coal let go control stations (incorporates the black and the browner coals) (Bird
et al., 2014).
A few kinds of black coals are reasonable for coke-production. These coals are called coking
coal and when warmed without air create gases and coke. Coke is a permeable strong made
chiefly out of carbon and powder. Great quality coke is hard, has a high squashing quality, and
is essentially utilized as a part of impact heaters that deliver press (Van Dijk et al., 2001).
Numerous natural chemicals, including tars and feed stocks for influencing different plastics,

to can be set up from the side-effects of coke and gas generation. Some coal is utilized
principally to get these items (Lenzen, 1998).
CHAPTER IV
4.0 PETROLEUM USE FOR POWER GENERATION IN AUSTRALIA:
A great part of the vitality traded from Australia is utilized for creating power abroad; three-
fold the amount of warm dark coal is sent out as is utilized as a part of Australia, and all the
uranium generation is traded (Lenzen & Murrary, 2001).
Australia additionally trades a lot of resources in the form of mineral items. the exports for
the aluminum metal, alone implant costs approximately 27 TWh of power for every year,
which is around 11% of the nation's aggregate gross creation and that's a huge amount that's
Australia producing (Riedy & Diesendorf, 2003). In the year 2015 around 34 TWh was utilized
as a part of non-ferrous metals (aluminum smelter generation represents the majority of this),
half of the business aggregate of 77 TWh. (australian atlas of mineral resources, n.d.)
Most of the development in esteem including producing in the previous 20 years have
originated from enterprises which are vitality and especially power escalated. The
development has happened in Australia because of generally low power costs combined with
a high unwavering quality of supply and the closeness of common assets, for example,
bauxite/alumina (Wilkinson, 2011). Australia is an individual from the Organization for
Economic Cooperation and Development (OECD) aggregate which elevate approaches to
enhance the monetary and social prosperity of individuals around the globe. (australian atlas
of mineral resources, n.d.)Australia is one of just three net hydrocarbons sending out
countries in the (OECD) and is the biggest exporter of the coal supplies. Australia additionally
sends out flammable gas, however, is a net shipper of oil (Lenzen & Murrary, 2001).
Australia is supplying vitality assets both universally and locally as it has vast assets in coal,
URANIUM and flammable gas. The OIL, GAS AND ENERGY ventures are real supporters of the
Australian economy. The KPMG Eco and tech expressed that "the oil business initiated $6.2
billion for every annum to the GDP. This is 66% the commitment of the materials, apparel and
footwear enterprises and double the ranger service and angling businesses”.

Australia is known to be the largest investor in the oil, gas and vitality businesses and with
proceeded with populace development and the consistently expanding requirement for
vitality, future monetary development is a distinct. Not all regions of the nation have been
completely investigated or misused for oil and gas holds. Australia has a solid development
potential in extending creations and expanding exportations (Bird et al., 2014).
Outside ventures contribute fundamentally to the financial development of Australia. Its
protected, steady and honest political and administrative arrangements and techniques make
Australia an appealing speculation opportunity. COAL SEAM GAS alone has gotten $31 billion
in speculations inside four months of creation in the year 2010 while different nations have
needed to sit tight years for financial specialists to contribute towards ventures (Riedy &
Diesendorf, 2003).
CHAPTER V
5.0 NUCLEAR POWER OVERVIEW
Although Australia has significant stores of uranium and is known to be one of the world's
principal exporters of the mineral, it doesn't itself misuse atomic power (Van Dijk et al., 2001).
This is regardless of the nation having a stable political and financial condition
notwithstanding generally stable topography, a vital factor as for the area of atomic power
stations and for putting away radioactive waste (Lenzen, 1998). Some unmistakable
Australian earthy people have pushed the utilization of atomic vitality as a low-carbon
contrasting option to consuming non-renewable energy sources, and a few nations –
especially China and India as mentioned in the (IAEA, 2011a) – are extending their atomic
enterprises with 65 atomic power reactors under development around the world (IAEA,
2011b) (Lenzen & Murrary, 2001). In Australia, in any case, the tenor of the verbal
confrontation about the likelihood of utilizing atomic power stays quieted. (Wilkinson,
2011.)Of the two noteworthy political gatherings, Labour’s longstanding approach is to
restrict its improvement, while on the other side the Liberal Party has for the most part upheld
the idea (Riedy & Diesendorf, 2003).

Australia has proved to be a dependable and focused player in the oil, gas and vitality
enterprises and is a strong supporter of CORPORATE RESPONSIBILITY PROGRAMS, natural
preservation and reclamation ventures and COMMUNITY DEVELOPMENT PROGRAMS. (Van
Dijk et al., 2001). Australia likewise has moral and controlled exchanging understandings
concerning the exportation and utilization of uranium and will just supply it to nations who
have consented to reciprocal shields arrangements with Australia, agreeing to directions that
it might just be utilized for power age and may not be utilized as a part of weaponry or fighting
creation (Clifton & Boruff, 2010).
CHAPTER VI
6.0 NATIONAL ENERGY MARKET OPERATOR:
AEMO’S thought about to produce as much energy which would deliver it to all Australian’s.
The Australian market operator is responsible for delivering the gas and electricity in markets
and is also operating the power systems, following includes:
• The national energy market, which is responsible for interconnected power systems
in the eastern Australia and south-eastern sea board.
• The whole sale electricity market of Australia and power systems which is in western
Australia.
It is also operating the following:
• The Victorian declared the wholesale gas market, and the transmission of Victorian
gas systems.
• The natural gas services by bulletin board
• The western gas of Australian by bulletin board.
• The Moomba gas supply hub and wallumbilla which is in Queensland and south
Australia.

• The short-term trading market of wholesale gas which is in Adelaide, Brisbane and
Sydney.
CHAPTER VII
7.0 ELON MUSK’S WORK IN SOUTH AUSTRALIA:
• As it is known to be the biggest particle of lithium ion batteries are now currently
allocated in the South Australia which is now being conveyed fourteen days back,
effortlessly whipping the guarantee the Musk of Elon made of "100 days or it's free."
(Wilkinson, 2011). The government of South Australia takes note by checking out of
the blue, breeze vitality could be guided towards framework all day, every day
enhancing the framework's dependability, regardless of the breezy whether is going
or not (Turner, 2001). The battery of 100MW cultivate has sufficient stockpiling ability
by controlling about0 30,000 homes.
• dispatch of todays arrives shortly after a managerial period of testing that observed
the battery's capacity for both in charge too, and from the National Energy Market of
Australia and go about as an originator. The company of NEM merges links around
Australia and 40,000km of transmission lines. Power packs of tesla were associated
with Hornsdale windfarm products, which is few hours by the north of Adelaide.
(australian atlas of mineral resources, n.d.)
• "The completion of the world's biggest lithium-particle battery in record time explains
that a reasonable, viable vitality arrangement is conceivable," the Tesla in an
announcement said, "We all are pleased to be a part of the South Australian’s
sustainable power source of future, that seeks the task gives an archetypal for the
after-future representation of organizations located all over the globe (Clifton &
Boruff, 2010).
• The person Tesla explains the importance of the battery that will benefit in
illuminating the energy of states that lack hardships and help within midyear top
burdens. South Australia has been incapacitated by vitality issues and endured a far-
reaching power outage last September. That occasion started a very politicized discuss
about vitality of security, which is with government of Federal, explaining possible

faults of sustainable power source which covers the use, while the others indicated
the transmission of lines and the towers which are toppling over because of extreme
climate (Clifton & Boruff, 2010).
7.0.1 Future Plans To Conserve Energy
To forecast the commodity exports of Australia it is important to increase the supply and
demand of global energy. These both factors give the positive impact on local economy. To
plan the future it is necessary to keep in mind the trend of long-term that support the demand
of global energy. There is a significant level of doubts that how will the demand of global
energy be change, the more we look the future the more that doubts becomes. China is the
largest emerging economy where high growth of energy demand noticed. Though, increase
in economy is predicted slow as these economies establish (Saunders, Cassidy, & Roberts,
2016).
CHAPTER VIII
8.0 PROPOSED SOLUTIONS TO OVERCOME POWER SHORTAGE
A power engineer Peter Farley and president of Victoria branch of Australia’s Engineer has
proposed a plan to overcome the crises of energy in Australia.
8.0.1 Victoria 2020 And Beyond
As the Liddell power plant, Hazelwood and Anglesea have already been closed, so the main
concern was Victoria will be having an insufficient supply of electricity. Yearly supply and peak
demand are the factors to be questioned. The yearly demand of Victoria’s electricity is 50
GWhr and 15 GW demanded at the peak time. Victoria is having 8.5 GW of coal, dispatchable
gas and local hydro additionally it shares 1.2.GW to a snowy scheme. South Australia, New
Castle, and Tasmania are the interconnected capacities of Victoria. The power demand of
super peak time cannot be fulfilled by energy flow from South Australia. There must be 10 to

15 % reserve capacity to balance the system if any failure or congestion grid occurs. Victoria
requires more sources to supply high-reliability power. The efficiency of energy, shifting of
demand and reduction of demand (usually combined together and act as a response to
demand), at the back of meter generation, storage, and the new generation (Potter, Smith, &
Ludlow, 2017).
8.0.2 Efficiency Of Energy
The economy of Germany is 30% industrial while in Victoria only 10%, we utilize more energy
per output unit. Apparently, there is a vast scope of the efficiency of energy. Currently, the
plan of energy efficiency is adequate but governments of state and local are not agreed to
enforce the standards of air-conditioned and refrigeration in a building. After 5-6 years, 2-4%
per year use of energy will be reduced by the Victoria. Ultimately the demand for peak time
will also be affected. The target is to reduce the peak demand by 150-250 MW every year.
There will be no considerable effect on the next 3 years but influence the need for future
generation (Blair, 2018).
8.0.3 Shifting Of Demand
In California,50,000 houses were selected and a plan was set to reduce the peak demand by
just 2 kW per house. Rush hour rewards is also an example of demand shifting. In Austin, run
time of air-conditioned reduced about 60% in 50 days by the rush hour reward system. To
start these systems houses and buildings have to pre-cool before the peak demand and later
during peak demand slowly temperature will drift up by 2C. This plan is also effective to switch
off time insensitive loads such as a dryer, pumps of pools and heaters (Marshall, 2017).
The premises of commercial and cool stores can also follow the same technology. As
hardware is already installed in pool pumps and A/C, so it is considered to plan for 100MW.
This hardware can also be installed in different commercial and industrial areas.
8.0.4 Reduction Of Demand
Demand reduction is usually term as a response to demand. For this large number of users
decided to decreased load on the time of peak demand. It seems that Alcoa has this contract.
It is possible to perform an auction for 700-800 MW. It would not be used in this summer, but
it depends, from when and where solar and wind batteries come on flow. Alcoa will run at full

production and reduction of demand will be useful if coming summer is hot. It is running well
at a sensible price or else idle diesel generators.
8.0.5 Behind The Generation Of Meter.
Backup combined heat system, power generation plant and generators are installed in many
industries, commercial areas, hospitals and government centers. According to the rules
during the building process, these systems must be cut off from the grid. Later with advance
work like upgrading of control systems, these systems could be linked again. The capacity of
this system is still not confirmed but probably it contributes thousands of megawatts per year
to stabilize the grid. With little increase in the cost, the capacity of this is like a gas turbine
generator. There is a need for regulation to increase the usage of this system which ultimately
affects the export rate of electricity that helps to equalize the load of heat and electricity.
8.0.6 Storage
The commonly used form of storage is warm water and later freeze for A/C and refrigerator.
This is temporary storage and will not help out to make difference at peak summer time. In
the same way, hydro pumps have a great impact about 5 to 6 years. In Germany, California
and UK batteries are fixing in generators to handle the rising peak capacity. This system can
be fixed at substations and switch yard to simplify the congestion grid, this system is running
in California and being planned to install in Victoria. This system is also installing behind the
meter as around 30,000 consumers will do across the NEM this year. All these strategies have
limitations; though, a mix is working great for the last 10-15% of the super demand for peak
day. There must be a fair division of the benefits and cost of batteries at every substation.
Check and balance is highly required (Pannett, 2017).
By installing batteries in all kinds of the generator (coal to solar), the short-term response is
getting improved and some storage is needed for installing a new grid of renewable. Finally,
the customers who are ready to install batteries got limited subsidies that drawn down by
operators of the grid while the cost and price are high. To deliver any power the customer
will be paid wholesale price. In the first year, 30-45% capital subsidy declining to a minimum
but in later 400-600MW will be build up behind the storage of meter (Milliken, n.d.).

8.0.7 New Generation
Victoria can produce about 50-55,000 GWhr every year and it depends on the factor of the
capacity of a gas plant. Instead of using expensive gas the black coal of New South Wales and
hydro of Tasmania can also be used. There are many ways to enhance the peak capacity of
present hydro designs and adjoint other hydro schemes to existing dams. This system cannot
supply much energy every year but can supply up to 150-250 MW of added peak power for
30-60 important hours every year, it can on and off very quickly than gas turbines so it has
less fault response, and don’t have any cost of fuel. It is to be clear that this is a better use of
present resources (Ryan, 2017).
To increase the availability of renewable is the need of time. The best example is turbines
with low wind their cost is high but produce for many hours than the present design. The wind
farm can be located at the east of the state, they raise the capital price but will increase the
path to reduce renewable generation and reduce the duration time to supply gas. The existing
energy market does not have these benefits. More renewable energy, extra storage, and
more energy efficiency will be required if more coal plants shut down in a country. In the next
three to four years, the energy efficiency program of Victoria will be developed in all areas of
economy and transfer present standards of building into standards of California.
OWNER POWER
STATION
TECHNOLOGY SUMMER
CAPACITY
DATA
COMMISIONED
QUEENSLAND
EDL OCI Oaky creek 2 Waste coal mine 15 2016
NEW SOUTH
WALES
AGL Power
development
Broken hills solar 53 2015

Elementus
energy
Williams dale solar 10 2017
VICTORIA
Pacific Hydro
wind farm
Portland stage wind 47 2015
Table 1 General Investment in National Energy Market
CHAPTER IX
9.0 ROLE OF AUSTRALIA IN PROVIDING ENERGY COMMODITIES:
As the commodity prices increase the demand for raw commodities also increases from rising
economies. Investment in mining industry sparks a considerable increase in Australia. The
increased capacity of Australia uses to generate iron ore and coking coal to meet the
increased production of steel in China. Production capacity and export energy commodities
mainly LNG also increased. Around $320 billion equal to around 15 percent of the worth of
GDP of one year. It has been invested in the capacity of Australia to generate LNG. Ultimately,
Australia has increased its importance as a energy commodities supplier, growth rate of
export of thermal coal increased and LNG have high impact on growth of GDP.
Figure 1 Energy Commodity Export Values (Source Credit: Department of Industry,
Innovation and Science)

The prices of energy commodities decrease as the supply from Australia or anywhere
increases. To has created many challenges for Australian manufacturers and raises many
queries about the possible future increment in energy demand and potential for Australia to
supply.
Figure 2 Energy Prices fluctuation graph Source Credit: Bllomberg HIS:RBA
9.0.1 Thermal Coal
Over the coming few years, the rate of development is predicted to slow off the global supply
of thermal coal as the prices of thermal coal have decreased and the demand for thermal coal
has increased. It is predicted that present supplier of higher cost gas producers will be
reduced. In reality, a significant share of thermal coal production in Australia is expected to
be unbeneficial in an existing price. Extensive pick-up in global energy demand would be
required to observe any large development in a export of thermal coal from Australia.
Figure 3 Seaborne Thermal Cost Production Costs (Source Credit: AME Group)

9.0.2 LNG
On the contrary, in Australia production of LNG is rising up with the considerable increase in
investment. Capacity is increased due to the advance expansion of technology allow new
preserves to be accessed effectively in cost. For example, approval and construction started
on the seven large-scale projects of liquefaction, in Queensland two are unconventional
projects of coal gas. One liquefaction project is situated on offshore in the west Australian
Browse Basin. These advance developments indicate that Australia is expected to be the big
manufacturer of LNG in the world and with capacity of 75 million tons per year.
Figure 4 Australian Liquification Capacity (Source Credit: AEMO)
CHAPTER X
10.0 ANALYSIS AND DISCUSSION:
In all rule changes and reviews, analysis is centered on the concept of efficiency. Efficiency
has three different elements and each project may emphasis a different one, there may also
be trade-offs between these different elements of efficiency specifically as following

10.0.1 How Can We Apply the Energy Objectives to a Particular Project?
The energy objectives can be applied through the considered elements:
10.0.1.0 First Element:
The first element of efficiency focuses on an individual task or process and is an
evaluation of whether, for a given level of output, the value of resources (inputs for this
output are minimized. If the value of resources used in a process are not minimized there
is an unnecessary economic cost in producing that level of output. In energy markets, this
would mean removing inefficient costs incurred by market participants in order that they
may supply energy to consumers at a price that closer reflects the cost of providing that
energy service.
10.0.1.1 Second Element:
The second element of efficiency is concerned with allocating resources to produce the
right mix of things. In energy markets this means that the community's demand for
energy services is met by the lowest cost combination of demand and supply side options.
This would occur when the value of the energy services to consumers is greater than the
cost of supplying those energy services: when faced with a set of prices, consumers and
businesses will choose the services that they value most, and resources will be allocated
accordingly.
10.0.1.2 Third Element:
The first two elements of efficiency are based on an assessment of a market at a
particular point in time. The last element considers the prospects for having the right mix
of resources, to produce the maximum amount for the minimum cost, over time. Such
markets are characterized where there are no barriers to innovation, the exit of
technology or the uptake new of technology and efficient long-term investment. For
example, in assessing policy mechanisms that may be put in place by governments to
reduce emissions, the ability of that policy to adapt to uncertain future outcomes, for
example demand outcomes deviating from forecasts, will determine how well that policy
can be integrated with the energy market.

CHAPTER XI
CONCLUSION
The demand for energy is continuously increasing but not that fast then it has been because
several new and big emerging economy markets are growing. The advance progress of
technology and continuous changing of regulatory have enhanced the energy efficiency and
modified the energy mix which can be effective in cost. Exports of Australia’s LNG are
continuously rising while the exports of thermal coal are inadequate. The innovation in
technologies and willingness in investment are the main factors for the increasing demand of
cleaner fuel and growth for energy efficiency.
Energy policy of Australia
For the primary industries such as coal, agriculture, the policy for the energy is planned by the
state and federal levels and for the rest, the energy policy gets affected by the whole three level
of the government. Some industries like of natural gas and coal mining industry, the federal
government is supporting them through different subsidies due to the reason that their
production and export is helping to earn a lot of foreign currency and also the income for
government through different tax. The dependent of Australian energy in coal is such that it
had made Australia the most coal dependent country. In the present scenario, the main source
for the Australian energy usage are the coal and natural gas in addition to the oil-based product.
The coal industries alone contribute about 38% in the emission of the greenhouse gases. The
policy of the federal government in 2015 cut down the aid for the renewable and the natural
gas which resulted in economy to return back to the pre-coal stage. Emission trading scheme,
which signifies the step to reduce the pollution taken by the government, was introduced in
2010 by the newly elected labor Rudd government. The government planned to provide the
different economic incentives with an aim to reduce the pollutants. The government also bring
a program to increase the supply of energy from renewable source. For this, it brings a
mandatory renewable energy target with a purpose to make sure that the 20% of energy supply
is from renewable energy source within the year 2020. There was a huge debate on the carbon
pricing mechanism between the poltical parties before it was brought into implementation in 1
July of 2012 when julIa Gillard was the prime minister.
Carbon pricing mechanism was brought as a clean energy act 2011. This mechanism only lasted
for two fiscal year and was cancelled by Abott government on 17 July 2014. Fixing the price
for the carbon was one of the step of the clean energy future plan whose motto is to decrease
the emission of carbon in Australia by 5% below 2000 level by 2020 and 80% below 2020
level by 2050. This plan aimed to achieve this target by using a policy to motivate the one who
emits a lot by doing the improvement in energy efficiency and the investment in sustainable

energy. It was under this scheme that the tax on personal income was reduced for the earning
below $80,000 per year and also the tax-free income was increased from $6000 to $18,200. In
the fiscal year 2012-13, the carbon price was set to $23 for a ton and was increased to $24.15
for the fiscal year 2103-14. This scheme was implemented on the electric generators and
industrial sectors. Road transport and agriculture was beyond this scheme. The emission of
carbon from the scheme applied sectors was reduced by 1%. After the period of nine month of
which the pricing scheme was applied, the emission of carbon in Australia from the generation
of electricity was below to a level which was never in the 10 years period and from the
generation of coal was down by 11%. But the factors for this reduction in the carbon emission
was a issue of debate and was claimed that the other factors played a role in reducing emission
rather than the carbon pricing mechanism. The carbon pricing mechanism was cancelled on 17
July 2014 when Tony Abott was prime minister and it was replaced by Emission Reduction
Fund in December of 2014. Also, in the year 2015, the aim of energy to achieve from renewable
energy was reduced to 33,000 GWh per year from 41,000 GWh.
National electricity market
National electricity market is a management for the connection of the synchronous
transmission grid to maintain the electricity market of different states surrounding the southern
and eastern states of Australia. Council of Australian Government formed the Australian
Energy Market Commission(AEMC) in the year 2005 under the Australian Energy Market
Commission Establishment Act 2004 (SA). This AEMC is responsible for developing and
maintaining the developing the Australian National Electricity Rules and is implemented by
Australian Energy Regulator. The daily management of NER is undertaken by Australian
Energy Market Operator. The function of NEM was started back in 13th of December 1998 and
at the moment its function includes Queensland, New South Wales, Australian Capital
Territory, Victoria, Tasmania and South Australia. Two states, Western Australia and the
Northern territory are the one without the connection with NEM. With the full activation of
Basslink interconnector, the function of NEM became full in Tasmania on 29 April 2006 even
though it joined NEM on the month of May of the year 2005. The Northern territory has already
taken the parts of National Electricity Law and another state, Western Australia, is also
preparing to adopt the parts. The interconnected power system between Port Douglas,
Queensland and Port Lincoln, South Australia is the world longest interconnected power
system that NEM operates and the distance of this power system is of 5000km and 40,000
circuit kilometers. There are almost 19 million end use customer and to meet their demand,
trade of about AUD 11 billion electricity is done annually.
Generators
Loy yang A power station and the Loy yang coal mine in Victoria was achieved by AGL energy
in the year of 2012. Loy yang A has a total capacity of generating 2200 MW of electricity with
its four-generating unit. Loy yang B, which is the brown coal fired power source with the
maximum efficiency of Victoria, has a total capacity of 1050 MW generating from its two

units. This new power station alone can generate around 17% energy demand of Victoria.
Another large power station in Victoria is the Yallourn W Power Station. It has a capacity of
1450 MW and contribute 22% of the Victoria’s energy demand and 8% in the energy demand
of nation. The generator with capacity 1600 MW in Victoria, known as Hazelwood Power
Station was shut down in June of 2017 in Victoria. The gap in the energy made by the closure
of this power plant is planned to be filled by three mothballed gas-fired stations, all of them
contributing 830 MW in total. Also, the industries in large scale have come to agree to change
their time of use of the power if there is a case of emergency. The rest of the shortage power
will be supplied from the Tamar Valley Power Station of Tasmania, Pelican Point Power
Station of South Australia and Swanbank Power Station of Queensland.
Transmission line
For the transmission of power in the state and between the states, there are five operators state
based. They perform the operation of high voltage electricity transmission all over Australia
with the coordination with the cross border inter connecter to transmit power between the state.
Transmission network service providers connects the generators with 13 main distribution
network which function to supply the power to the end use costumers.
In Queensland, Powerlink Queensland is the transmission network service provider owned by
Queensland government and have a length of 13,986 km. TransGrid, owned by NSW
Electricity Networks consortium for a 99-year lease is the transmission service network
provider and the total length is 13,957 km in New South Wales. In Victoria, Transmission
network service provider operates under the name AusNet Services and is the joint ownership
of Singapore power, state grid corporation of china and public sharing 31.1%, 19.9% and 49%
respectively. The length of the network is 6,553 km. ElectraNet and TasNetwork are the
transmission service network provider in South Australia and Tasmania respectively each with
a network length of 5,591 km and 3,688 km. tasNetwork is owned by Tasmania government
where as ElectrNet is jointly owned by State Grid International Development Asia & Australia
Holding Company, YTL Power Investments, Hastings Utilities Trust and UniSuper.
Interconnector
There are two Interconnector between New south wales and queensland. Terranora
interconnector is the directlink interconnector used to transmit the high voltage direct current
between these two states. This is a transmission line extending from Mullumbimby, new south
wales and Bungalora, new south wales. Another interconnector between this state is
Queensland – New South Wales Interconnector. This is a 330kv interconnection between two
states which started in the year 2001. The line consists of 330kv double circuit line in Armidale,
Dumaresq, Bulli Creek and Braemar and a 275 kv also of adouble circuit between Braemar and
Tarong. It only had a transfer capacity of 300 to 350 MW from both direction when it begins
its operation. But, its capacity has been increased largely to reach a value of 700 MW from
New south Wales to Queensland and to the capacity of 1200 MW from Queensland to New
South Wales.

Basslink interconnector connects the two states, Victoria and Tasmania. This interconnectornis
of 370 km length and power of 500 MW. This interconnector is high voltage direct current
transmission and it connects the power source of the two states, so they can either supply or
import whenever needed with the help of the transmission line. With the commencement of
basslink interconnector it gives certain financial benefit. The need to further invest for the
generation of base power is solved and also power can be sold during the peak time when the
price used to be more. Also, the power generation in Tasmania is mainly from hydro. So, during
the dry period, the power can be supplied back to there.
Murraylink connects the two states, Victoria and south Australia. It is a high voltage direct
current transmission system which connects the transmission between Berri in South Australia
and Red cliff of Victoria. Through this the electricity grid of two states are connected.
Murraylink is the longest transmission system of world built underground and the total cost
comes out to a value greater than AUD 177 million. The length of Murraylink is 180 km and
comprises of bipolar high voltage direct current cables. The voltage at which the circuit
operates is 150 kv and the power it transmits is 220 MW. For the conversion of the current
between direct current and alternating current, it uses a voltage source converter system
implementing the insulated-gate bipolar transistors. Even though, the Murraylink
interconnector is rated at a capacity of 220 MW, during the period of high demand, it cannot
function at its full capacity. The reason behind this is there are certain limitations like a thermal
overload, with the equipment available at both the end.
Reliability of the network
To maintain the standard of the power supply, a panel is established by Australian Energy
Market Commission and is called reliability panel. They are responsible for maintaining the
reliability standard in the national electricity market. To maintain the reliability, for now it is
set that for a certain region, there should only be 0.002% of unserved energy of the total energy
consumed in that region for a period of a year. To meet the standard of the reliability, there
should be a certain reserve that NEM Should operate with. Until now, there should be a reserve
of 850 MW that AEMO should make sure is available across whole NEM. Whenever the
reserve set by AEMO are used, the spot price will be set at maximum value.
Electricity generation in Australia
In a period of ten year, from 1998-99 to 2008-09, the consumption of electricity in Australia
had raised by a rate of 2.5% annually. In the year 2008-09, the generation of electricity in
Australia was 261 terawatt-hours and during the period of four year from 2009 and 2013,
national energy market usage was reduced by around 4.3% which is about 8 terawatt-hours.

Figure 5 generation capacity and peak demand of electricity
The growth of the economy after the world war II was in a fast pace. This led to the increase
in the demand of the power in Australia. To facilitate the quick increase in demand, a huge and
expandable coal fired based power station was built in new south wales and Victoria. In new
south wales, power station based on black coal was set up and brown coal fired station was in
Victoria. The design of generator was not good so the generator failure in new south wales
results in the blackout. Also, the shortage of the storage in snowy system and the conflicts in
the industry in Victoria results in blackout. It happened during the year 1981 and 1983. This
became a issue for debate and for to avoid this in the coming future, electricity commission of
new south wales proposed the new south wales government to grant the decision to build the
power plant of large capacity at Mardi and Olney of central coast.
For the electricity generation planning in new south wales, a commission was set up which
presented its report in the mid of 1985. This inquiry was the first one which was done
independently outside from the industry. The enquiry found out that the power stations
currently in existence are not efficient. It also proposed the four-plant restructured to make the
sufficient power for the normal purpose and the cost was estimated to about $12 billion. With
this enquiry set up in new south wales, it proved to be the start of the end of the centralized
power utilities and shift the Australia energy policy into the new direction. The energy policy

of Australia shifts towards decentralization, and the interconnection between states and also
the market policy.
Coal power
Until now, coal is the primary source through use electricity is generated in Australia is coal.
In 2008-09, the combined capacity of the plant all over Australia to generate electricity was
about 51 GW. In this, a major contribution was done by coal power plant contributing around
29.4 GW in 2008-09. Also, the coal power is generated by using the two types of coal, black
coal and brown coal. In that year, 143.2 terawatt hours of electricity was generated by burning
black coal and from brown coal is 56.9 terawatt hours. In eastern Australia, the electricity
generated from the coal comes out to cost around 7 and 8 cents per kilowatt which will be $79
per MWh.
The coal has been both the biggest contributor in the supply of energy and also in the emission
of carbon in the atmosphere. It has been a serious problem in the environmental issues. So, this
has been one of the reason for us to find the alternate of the coal energy. The use of the
renewable energy is being increased with an aim to replace the coal energy. But, it will not be
replaced so fast as the contribution it in the supply of energy is very large.
Hydroelectric power
Hydropower contributes about 6-7% of the energy in the national electricity market.
Hydropower make use of the energy contained in the flowing water. The kinetic energy
contained in the moving water is used to run the blade of the turbine and in turn mechanical
energy is produced. This mechanical energy is converted to the electric energy and is
transmitted to meet the demand through the transmission line. Hydropower are run of river type
which are basically used for small power generation. Large power generation uses the dam
storage and can run throughout the year unlike the ror type which needs continuous flowing
river to operate.
The largest hydropower in Australia is the Snowy Mountains Hydro-electric scheme which has
a capacity to generate 3800 Mw of power. This capacity is nearly equal to the total power
generated throughout the nation. This big hydropower was started to be construct from the year
of 1949 which took 23 years to begin the operation in the year 1972. It lies in both states, New
south wales and Victoria. This scheme has nine power station 16 dams and 125 km of tunnel.
This makes this snowy mountain, the most complex combined water hydroelectric electric
scheme. There are still more than 100 hydro power plant in Australia which are contribution in
the production of electricity. Among all of them, snowy mountain is the biggest one. Most od
the other hydro power plant are situation in an area where there are rainfall in abundance and
good elevation. Most of the hydro power plant are situated in new south wales, Victoria and
Tasmania.
Hydropower has been the most environment friendly renewable source of energy. The problem
of carbon emission that we face from by burning the coal is not found while generating power
from hydropower. Also, the natural ecosystem is least affected while generating the hydro

power. But some problem is created while creating the dam and other structure needed for
generating power. The aquatic life gets affected while creating the dam and the area around the
dam may get flooded and the habitant need to shift to the new place for the survival. The natural
path of the river is changed and so the habitant in this path gets affected.
Wind energy
wind power is another mode of generating power from renewable source of energy in Australia.
This source of energy has been expanding in Australia from the past few years. The issue of
global warming while burning the nonrenewable source is the main reason for the wind energy
to gain the popularity. Also, the nonrenewable energy is being depleted so fast that the
sustainable source is required for to continuously supply the power in the future with the rapidly
growing demand. The wind energy has increased by almost 35% in the last five years of the
total installed capacity. The energy generated from wind power was 4555 MW of installed
capacity in the year 2017. In addition, 1800 MW of energy is planned to be produced from
wind energy and is already proposed. In the year 2016, the contribution by wind power in the
total demand of Australia was 5.3% of total demand where as its contribution in the renewable
source was 30.8% of the total electricity produced from renewable source. These total powers
were generated from 79 turbine installed nation wide and more of 16 projects are finalized and
some are under construction, some with finished construction and some soon starting the
construction. These new projects will generate a total additional electricity of 1861 MW after
it comes under operation.
In the year 2016, wind power was the major contributor of electricity. It supplies 40% of the
total electricity demand of the state in the year 2016. South Australia has 36.9% of wind energy
generated of the total wind energy generated nationwide. Wind energy started to sideline the
coal electricity from the year 2011 in which year 26% of electricity was generated from wind
power. During that time period, he population in south Australia was only 7.2% of total
population of nation and the wind energy generated in south Australia was 54% of total wind
energy installed in Australia.
Another state, Victoria, produces 30% of wind energy of total production in nation in the year
2016. Victoria government had brought a program to encourage the investment in the wind
power. This step is taken to motivate the power production from renewable source of energy.
A project of 100 MW is supported financially by the Victorian government in the year 2015
and is also believed there are about 2400 MW projects which are given the approval by the
government and are to be built.
Australia has a great possibility for the generation of the power from the wind. In southern
coastlines, there are more than 100 sites that has a wind moving at a speed of 8 to 9 m/s at a
height above 50 m from the ground. West Victoria, south region of south Australia, north part
of Tasmania, southwest of western Australia and some high area of new south wales along with

Queensland are some part in Australia with the greater possibilities to produce the electricity
from the wind energy. These are having a wind with high possibilities of generating the power
for electricity. The capacity factor of wind energy is great in Australia. The capacity factor lies
between 30% - 35% in Australia due to which the wind farms becomes the most efficient one
for the power generation. Capacity factors represent the unitless ratio between the electricity
produced at a certain time to the total electricity production capacity during that period. The
higher the capacity factor, the plant is said to be more efficient. The value of capacitor lies
below one and in the ideal case its value is unity. Capacity factor get influenced by several
issues. The issues like maintenance which can either be the scheduled one or unscheduled, site,
the design used for the installation. In the case of wind energy, capacity factor gets highly
influenced by the location. The location of Australia is suitable for the wind energy that is the
reason why the capacity factor is found high in this region. The rated capacity of the plant is
assumed under its continuous operation over certain period. But all the factors mentioned above
make it almost impossible to operate the plant under its full capacity. That is the reason why
the capacity factor for a certain plant is always below unity.
Capacity factor can be calculated by using the formula
= 𝑡𝑜𝑡𝑎𝑙 𝑝𝑜𝑤𝑒𝑟 𝑔𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑
𝑟𝑎𝑡𝑒𝑑 𝑝𝑜𝑤𝑒𝑟∗𝑡𝑖𝑚𝑒 𝑝𝑒𝑟𝑖𝑜𝑑(𝑢𝑝𝑜𝑛 𝑤ℎ𝑖𝑐ℎ 𝑡ℎ𝑒 𝑝𝑜𝑤𝑒𝑟 𝑔𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑 𝑖𝑠 𝑐𝑜𝑛𝑠𝑖𝑑𝑒𝑟𝑒𝑑)
In addition, the capacity factor of the wind turbine also gets (Parkinson, 2014) affected by the
capacity of the transmission line and the demand of the electricity.
There has been a growing interest in the investment of wind power. Recently, partners group
have decided to invest $700 million for the development of renewable energy and have planned
to produce 1.3 GW of energy by constructing the new windfarm in Australia. The project will
start with the Sapphire Wind Farm project located in NSW’s New England region of capacity
270 MW. Another project under this investment is planned to be Crudine Ridge Wind Farm of
capacity 135 MW. It will be located near mudgee in new south wales and the construction will
started from may of 2018. The project is planned to finish on September of 2019. This new
project in mudgee includes 37 GE 3.63 MW turbines. After its operation has started, it will
provide 400 GWhrs to the grid annually. Besides this project, there are several other projects
which a combination of wind solar and battery storage system is.
The table shows some of the largest wind farm of Australia
S.N Project State Capacity
1 Macarthur Wind Farm Victoria 420
2 Snowtown Wind Farm South Australia 369
3 Hallett Wind Farm South Australia 351
4 Hornsdale Wind Farm South Australia 315

5 Lake Bonney Wind Farm South Australia 278
6 Ararat Wind Farm Victoria 240
7 Collgar Wind Farm Western Australia 206
8 Portland Wind Farm Victoria 195
9 Waubra Wind Farm Victoria 192
10 Musselroe Wind Farm Tasmania 168
Solar power
Solar is also another important source of renewable energy in Australia. Solar power has shown
a great possibility and is an expanding industry of Australia. Until the beginning of 2018, there
was more than 7803 MW of solar power installed and among this 1651 MW was installed
during the last 12-month period. There were about 23 projects in the year 2017 with a total
capacity of 2034 MW which were some being constructed, some with finished construction
and some starting to do the construction. These all generated power from the solar resulted in
contributing 2.4% of total electric energy produced in Australia. There is different program
launched and policies made to attract the investment in the solar power which will in turn help
to reach the renewable energy target. For the purpose of helping the commercialization of the
renewable energy in Australia, feed in tariffs and renewable energy target has been launched.
This program is believed to be the catalyst for the sudden increase in the solar power generation
in Australia. The feed in tariff was bring into practice in south Australia for the households and
educational program. This consists of installing the solar panel on the roofs of some important
public building like Adelaide Airport, State Parliament, Museum, Art Gallery and hundreds of
public schools. A funding of 8 million was provided in 2008 by premier mike ran by installing
the solar panel on the roof of new Goyder Pavilion at the Royal Adelaide Showgrounds. This
is the biggest rooftop solar installed in Australia.
There has been a positive change in the generation of solar power between the period of 10
years. Between the year 2009 and 2011, the solar generation capacity was increased by ten
times. During the five-year period from 2011 to 2016, the solar generation has increased by
four times. Even though the solar power generation is being increasing with time in Australia,
but the progress had not been done as much as it has the possibilities. So there has been a
criticism globally for not generating the solar power in adequate amount.
The climate of Australia is dry and also its combination with the latitude gives the great
potential for the generation of the solar power. In winter season also, the insolation received in
most of the part of Australia is about 4 kwh per square meter per day. Not only this, but the
region in northern area receives a insolation of more than 6 kwh per square meter per day. This
value of insolation is greater than the average insolation level found in Europe, Russia and
most of the north America. The insolation value of the range found in Australia is found in the

desert areas of north and south Africa, some western part of united states and the surrounding
area of Mexico and the area of pacific coast of south America. In 2016 Australia was ranked
amongst the top ten countries producing the electricity from the solar energy. It produces a
power around 5900 MW.
Different states have brought different program to promote the use of the solar power. It is a
plan which can help to achieve the renewable energy target set up by the government to achieve
in 2020. Some of the program undertaken to promote the solar use are listed below
i. Rebate
There was a plan called solar homes and communities launched by the Australian government.
It provides a rebate up to $8000 as a return of installing the solar panel in homes and other
buildings used by the community except the school. This rebate was removed on 8 th of June
2009 and was replaced by solar credit program. In this program, the one who install can get a
certificate 5 times as many as renewable energy certificate for the starting 1.5 KW capacity
which falls under the renewable energy target. National solar scholars program started on 1
July 2008 and under which school were allowed to apply for a grant up to $50,000 for installing
the 2 KW pv module. This application was ended on 21 November 2012 before which 2870
school installed the solar panel.
ii. Feed-in-tariffs
Many states have brought a plan to promote the household for installing the solar panel in their
home. For this, they have planned to make it possible for the household to sell their excess
energy to the retailer and supply it to the grid. This is called the feed-in. Most of the feed-in
tariff in Australia was a net export tariff. Australian Capital Territory (ACT) begins the solar
gross feed-in tariff in the month of march 2009. The price was fixed to 50.05 cents per kwh up
to the value of 10 KW and 40.04 cents per KW when the value exceeds 10 KW.
iii. Renewable energy target
Mandatory renewable energy target(MRET) was started by government of Australia in 2001
to promote the renewable energy. It set a target to reach 20% of electricity share by the
renewable energy in the total energy production by the year 2020. To achieve this target, the
production need to be increased to 45000 GWh from 9500 GWh by the end of 2020.
iv. Subsidies
$1.6 billion has been placed for the solar power for the coming six years by the solar flagships
program. This funding from the government is to provide the fund for the four solar project
which have the capability to produce the power in the range of coal power plant. These four
plants are to be produced 1000 MW of electricity in total.
Nuclear power
Australia being rich in the uranium, the nuclear power has not been able to start still. The use
of nuclear power has been a issue for debate among the political parties and also the policy

makers. Different state like Queensland and Tasmania had already brought the legislation to
ban the nuclear power. The main concern is the environmental issue that has stopped nuclear
power to develop in Australia. But, Australia had been exporting the uranium in abundance
from many years but have heisted to utilize it to produce the electricity. Nuclear can be the
great source of power if it can be used safely and rationally. A great change in the economy of
the country can be possible. It may not be needed today but with the growing population and
rapidly increasing demand for the power, some day might come in the future where we can see
only the solution to the power shortage as a nuclear power.
Geothermal
19 companies in 141 places all around Australia is drilling to extract the energy from the hot
rock located at the depth. For this purpose, they have spent around $654 million for exploring.
South Australia has been given the name” Australia’s hot rock haven”. The energy generated
from this renewable source is estimated to provide 6.8% of Australia’s base load need by the
year 2030.

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