Australia's Stand on Renewable Energy: Economic Analysis and Benefits

This paper examines Australia's commitment to renewable energy, analyzing its economic impact and highlighting the benefits of transitioning to a sustainable energy future. It explores the job creation potential, cost-effectiveness, and environmental advantages of renewable energy sources like solar, wind, and hydro power. The paper also discusses the challenges and opportunities associated with Australia's renewable energy transition, providing recommendations for further development and investment.

Australia’s Stand on
Renewable Energy
Name of the Student:
Student ID:
Name of the University:
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Contents
Introduction:....................................................................................................................................3
Different issue: utilization of non-renewable energy:.....................................................................4
Economic Analysis of Australia:.....................................................................................................6
Recommendations:..........................................................................................................................9
Conclusion:....................................................................................................................................11
References:....................................................................................................................................12
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Introduction:
Australia is continuing its fight to stand on the usage of renewable energy. Australia’s effort
helps to expand and quantify the utilization of renewable energy in terms of generating the
electricity. Renewable energy is produced by the renewable sources such as solar thermal, solar
PV, geothermal, landfill gas, hydro and wind. Due to the quantifying utilization of renewable
energy, Australia got the 39 project in 2017. As a result, it influences the economic sector in
Australia. This project defines the concept of benefit of renewable energy in economic
perspective; discuss different kinds of issue and economic analysis. Australia stands on the
utilization of renewable energy because it has many benefits. However, this project is mainly
focused on the analysis of the economic sector.
 Less global warming
 Improve the health of the public
 Inexhaustible energy
 The benefit of Jobs and another economic sector
 Stable energy prices
 Resilience and Reliability
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Figure 1: Percentage of renewable electricity generation by energy source
[Source: Jamal et al, 2017]
Different issue: utilization of non-renewable energy:
The main disadvantage of non-renewable energy is –
 Damage environment and health
 Increase global warming
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As per the research, it is stated that Australia is one of the markets of import and export business
in terms of non-renewable energy resources.
Coal resources: According to the report, it is observed that Australia possesses near about 10%
of coal resources. 13% of coal production is used for the domestic purpose and 87% of coal is
exported (Jamal et al, 2017). Over the year the usage of coal for the domestic purpose has
increased, as a result, it affects the regular life of human being.
Oil resources: According to the report of 2013-2014 budgets, it is stated that Australia
possesses 0.3% of the oil resources and export to the Asian refineries. The amount of oil
resources is less in Australia; still, it affects the environment as well as human health (Laslett et
al, 2017).
Uranium resources: Australia is the largest low-priced uranium resources all over the world.
Australia holds the position of third in terms of uranium producers. The production uranium
affects the environment as well as human health. Massive utilization of uranium can damage the
environment (Fornarelli et al, 2017).
Gas production: As per the current survey it is stated that-
 Carnarvon offshore basin produced 32% gas from Western Australia
 Gippsland offshore basin produced 23% gas from Victoria
 Bowen and Surat basins produced 21% gas from Queensland
 Otway offshore basin produced gas 10% from Victoria
 Cooper Basin produced gas 9% from Australia
Total 95% of gas is produced from Australia. This gas already spreads harmful dust in Australia.
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Figure 2: Production of Gas market
[Source: Saiprasad et al, 2017]
Economic Analysis of Australia:
Utilization of renewable energy in Australia, it influences the jobs and another economic sector.
Compare with the technology of fossil fuel, which is capital intensive and mechanized, the
industry of renewable energy is more workers intensive. Human required to install solar panels
and to maintenance wind farms. More than average jobs are created for the renewable energy
generation than fossil fuels.
In recent status, stated that more than a thousand jobs are created in Australia. As a result, it
improves the economic status of Australia. According to the report of Australia, (2016), it is
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stated that 100,000 full-time employment were created by the industry of wind energy such as
consulting service, financial, legal, transportation, and logistics, maintenance and operation,
construction, manufacturing, turbine installation, project development (Deason, 2017). It is also
Figure 3: Global Renewable energy installed capacity by technology
[Source: Deason, 2017]
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Stated that, for wind turbines, more than 600 factories manufactured different parts in Australia
and as a result, in 2016, wind power project installation alone invested $ 13.0bn.
Apart from the wind energy, solar industry also involves job creation in Australia. As per the
recent survey, it is stated that solar industry recruits more than 270,000 employees in 2016 such
as sales, installation, maintenance, manufacturing (Saiprasad et al, 2017). This statistic data,
show that the employment is increased more than 25% from the previous year (2015).
In 2017, another renewable energy industry name hydroelectric power industry recruited more
than 65000 people in Australia (Laslett et al, 2017).
In 2017, near about 5900 people were employed by the industry of geothermal (Jamal et al,
2017).
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Recommendations:
The job creation from the renewable energy industry draws the positive image in the economic
sector and it is called “ripple” effects. That means, supply chain in the renewable energy industry
will benefit, and local business of Australia will also benefit from the develop income of
business and household. Therefore, it is required to focus more to utilize the renewable energy
source.
As per the analysis of UCS, it is observed that national standard of renewable electricity will
stimulate the investment near about $ 264.5bn for the different technologies of renewable energy
(Fornarelli et al, 2017). It indicates the positive direction in terms of investment. Therefore,
investors can invest the amount in this industry.
Figure 4: Global new investment in renewable energy
[Source: Deason, 2017]
According to the statistic report, it is found that renewable energy industry needed upfront
investment to construct, so they can control the function of technologies at a very low price.
Therefore, over the period the cost of renewable energy is very stable. Therefore, many business
and job opportunities can develop in this industry.
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Figure 5: Historic coal price by region, 2008-2013
[Source: Deason, 2017]
As per the research, it is stated that the curve of the economic state is increasing over the year.
The report states that, in past decade, renewable energy, made up the output of national
electricity only 7% and it turns to 17.4% within last year and then it jumps to the 18.9% last
month. It is the great positive sign in the economic state of Australia (Fornarelli et al, 2017).
The report states that last year near about 150,169, systems were installed and it produced the
energy for a large number of homes, it is near about 227,000. As a result, consumers can save
near about $1.6bn electricity bills for the next 15 years.
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Conclusion:
This statistic will show the economic status of Australia. If all the states focus on the renewable
energy utilization then it will draw the positive image in economic sector as well as another
industry.
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References:
 Deason, W., 2017. Comparison of 100% renewable energy system scenarios with a focus on
flexibility and cost. Renewable and Sustainable Energy Reviews.
 Fornarelli, R., Shahnia, F., Anda, M., Bahri, P.A. and Ho, G., 2017. Selecting an
economically suitable and sustainable solution for a renewable energy-powered water
desalination system: A rural Australian case study. Desalination.
 Jamal, T., Urmee, T., Calais, M., Shafiullah, G.M. and Carter, C., 2017. Technical challenges
of PV deployment into remote Australian electricity networks: a review. Renewable and
Sustainable Energy Reviews, 77, pp.1309-1325.
 Laslett, D., Carter, C., Creagh, C. and Jennings, P., 2017. A large-scale renewable electricity
supply system by 2030: Solar, wind, energy efficiency, storage and inertia for the South West
Interconnected System (SWIS) in Western Australia. Renewable Energy, 113, pp.713-731.
 Saiprasad, N., Kalam, A. and Zayegh, A., 2017, November. Optimal sizing of renewable
energy system for a university in Australia. In Universities Power Engineering Conference
(AUPEC), 2017 Australasian (pp. 1-6). IEEE.
 Tayal, D., 2017. Achieving high renewable energy penetration in Western Australia using
data digitisation and machine learning. Renewable and Sustainable Energy Reviews, 80,
pp.1537-1543.
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