Households, businesses and industrial energy users in Australia are increasingly turning to renewable energy for power generation, according to an International Energy Agency report.
The Renewable Energy for Industry report noted that solar, hydro and wind power’s potential to offer cost-savings and reduced carbon footprint could be the reason for the increasing use of renewable sources.
Australia’s “especially abundant” sources of renewable energy allow it to make an easy transition, according to the report. It cited price as one selling point, since solar or wind energy may cost less than A$39/MWh, which is less than 50 percent of current wholesale prices in the market.
Likewise, renewable sources provide uses with “hedging against fuel and grid price volatility.” It also presents more opportunities to achieve revenue and improve productivity, the report noted.
However, the IEA also said that Australia might not abandon non-renewable resources, especially as the country would be a major global supplier of gas by 2040.
Carbon steel pipe and pipe fittings will be more necessary in Australia, as the IEA expects it to expand its role to become one of the world’s biggest gas suppliers. A shift from coal-fired generation to gas-powered facilities will gain traction since Australian gas exports are on the rise.
Energy Minister Josh Frydenberg said that sources of gas energy would account for 72 percent of the country’s energy mix in the future. The IEA’s World Energy Outlook also showed that there would be four major changes in the global energy industry for the next 20 years.
These developments include a growing population that will drive additional demand through 2040, which would be equal to the consumption of China and India.
The IEA’s outlook and perception on non-renewable and renewable energy sources indicate that Australia may not favour one over the other anytime soon.