Australia’s Stand on Renewable Energy

Running Head: AUSTRALIA’S STAND ON RENEWABLE ENERGY
Australia’s Stand on Renewable Energy
Name of the Student
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1AUSTRALIA’S STAND ON RENEWEABLE ENERGY
Table of Contents
Introduction......................................................................................................................................2
Summary of the Article Story..........................................................................................................2
Economic theories and concept.......................................................................................................4
Subsidy policy.............................................................................................................................4
Supply shortage and high price....................................................................................................5
Recommendation.............................................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

2AUSTRALIA’S STAND ON RENEWEABLE ENERGY
Introduction
In the modern world, pressure from growing population and urbanization put heavy
pressure on natural resources. The rapid use of exhaustible resources lead to an end of the stock
of these resources. The exhaustible resources cannot be regenerated in the recent future. Hence,
countries now focus on increasing their reliance on the renewable energy sources. Australia put
forward great effort to increase its use of renewable energy source for electricity generation,
generation of thermal fuels and replace fossil fuels used in transportation. The energy sources
used here include wind, hydroelectric, solar thermal, biomass and bioenergy
(cleanenergycouncil.org.au 2017). The report evaluates a news article claiming subsidies to
renewable energy pushes up bills.
Summary of the Article Story
A significant growth in renewable electricity generation is observed in Australia since the
beginning of twenty first century. Around 14.6 percent of total energy production in Australia is
of renewable energy. The estimated production of renewable energy in 2015 was 35007
gigawatt-hours. Australian government provides subsidy to the renewable electricity to
encourage energy production using renewable energy sources. 82 percent of the subsidy is
granted to ‘Clean Coal Technology’. The remaining 18% fund goes to renewable energy project
named “Project Solar System’’.
The Subsidies given to the energy sector have made responsible for increase in power
prices. With this, electricity bills averaged to $300 as per the report published in energy market .
Therefore, government consider revising of its subsidy policy to counter the price rise. Josh
Frydenberg, the federal energy minister recently published Research Centre report that