POWER June 2013 - 49

This report was researched and
written by Global Business Reports
Katie Bromley and Angela Harmantas
Australia's New Energy Paradigm
Investments into Australia's power sector enable the industry to meet the
collective goal of becoming a cleaner, greener nation
For years, Australia has been heavily reliant on plentiful domestic
coal resources for electricity generation, but recent federal legislations
are explicitly designed to restructure the country's power
supply. The July 1, 2012 introduction of the Labour government's
much-debated carbon tax has signaled a new wave of enthusiasm
for renewable energy projects that have previously been considered
a complement to Australia's coal-fired generation matrix. In another
move to promote renewables, the federal government has instituted
a Renewable Energy Target of 20% renewable power generation by
2020, representing a 10% increase from current levels.
These developments have taken place at a time when Australia
has successfully navigated the harsh waters of the global financial
crisis, thanks in large part to its energy-intensive resource industries.
Australia's GDP growth during the first half of 2012 ranked amongst
the developed world's highest rates at 3.7%. In another stamp of
approval for Australia's economic success, the International Monetary
Fund predicted that Australia would outperform all advanced
economies for at least the next two years.
The continued growth of Australia's economy is largely contingent
upon the availability of cheap, reliable power, which currently equates
to coal and gas. While publicly there is excitement surrounding the
development of renewables, industry proponents themselves acknowledge
that wind, solar and biomass are in the early stages of
commercialization. For now, coal remains king.
Coal-fired power stations have been the reason for Australia's successful
economic growth in every state, according to Peter Jackson,
managing director of Eraring Energy, a state-owned utility in New
South Wales that operates the 2880 MW Eraring coal-fired power
station. " Consumers are increasingly aware of electricity pricing,
having increased substantially over the last few years. This price
increase is due to distribution costs, while generation costs are exactly
the same today as it was five years ago - in real terms, costs
have reduced due to increased efficiencies in coal-fired power stations, "
he said.
The company recently invested A$600 million into Eraring power
station for environmental upgrades and increasing capacity.
David Pryke, executive vice-president, Energy at Siemens Australia,
estimates it is unlikely there will be a new fossil plant in coming
years, which he attributes to a fall in demand. " There has been
a lower energy demand in the manufacturing industry because of
closures apportioned to the high value of the Australian dollar. The
public has become cost-conscious and more frugal with electricity
use, " he said.
Household electricity bills have risen almost 50% over the past
three years. The Australian Energy Market Operator, who overCondenser
Cooling Water Piping. Photo courtesy of Eraring Energy.
June 2013
Global Business Reports // POWER AUSTRALIA
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POWER June 2013

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