1. Energy supply and use in Australia
Allison Ball
Manager, Energy Program

2. Outline Energy use in Australia Australia’s energy supply
Electricity generation investment

3. Energy intensity in Australia
=100
GDP
Energy consumption
Energy intensity
Growth in energy consumption lower than growth in GDP
Decreasing energy intensity = increasing energy productivity
Source: BREE 2014, Australian energy statistics.

4. Australia's energy consumption, 2012-13
Oil is the largest energy source in Australia: 38% of total primary energy consumption
Coal share is 33%, but role is declining
Source: BREE 2014, Australian energy statistics.

5. Australia’s energy consumption, by fuel type
Primary energy consumption fell 0.5% in
Oil, gas & renewables consumption increasing
Coal consumption falling, to lowest share on record
Source: BREE 2014, Australian Energy Statistics.

6. Australian energy consumption, by industry
Electricity generation, transport & manufacturing sectors account for 76% of energy consumption
Decline in energy use in electricity generation sector
Mining is fast growing sector: 9% increase in
Source: BREE 2014, Australian Energy Statistics.

7. End-use energy intensity
Example of decomposition of change in energy use
Will look at trends in energy consumption in end use sectors in more detail
Decompose change in energy consumption into activity, structural and energy efficiency changes
Due out 1st quarter 2014
Note: Chart results are illustrative only.

8. Australia’s energy production, by fuel type
Primary energy production in Australia is PJ in 2012–13
Recent energy production growth supported by increased output of black coal, uranium and gas for export
Source: BREE 2014, Australian Energy Statistics

9. Coal in Australia Black coal balance Coal-fired electricity generation
Source: BREE 2014, Australian Energy Statistics.

10. Oil in Australia Oil production Crude oil and ORF balance
Source: BREE 2014, Australian Energy Statistics; Resources and Energy Quarterly.

11. Refined products in Australia
Imports share of refinery feedstock
Refined products balance
Source: BREE 2014, Australian Energy Statistics.

12. Gas in Australia Gas balance Gas use by sector, 2012-13
Source: BREE 2014, Australian Energy Statistics; Energy in Australia.

13. Renewables in Australia
Production by type,
Use by sector,
Source: BREE 2014, Australian Energy Statistics.

14. Electricity use in Australia
Consumption by sector,
Consumption by market
Source: BREE 2014, Australian energy statistics.

15. Household energy prices
Electricity
CPI
Gas
Source: ABS 2014, Consumer price index.

16. Transmission & distribution capital investment, NEM
A$b

17. Energy efficiency in households
Electricity use in Melbourne on a hot (max temp 35°C) and a mild day (max temp 23°C)
Hot day
Mild day

18. Electricity generation, by fuel type
Electricity generation fell from 253 TWh in to 249 TWh in
Decline in electricity demand driven by energy efficiency, weather, reduced load, higher prices
In 2012–13, Australia’s total electricity generation was around 249 terawatt hours, a decrease of 1.6 per cent from 2010–11.
Coal-fired power stations continue to contribute the majority of output to the Australian electricity market due to their higher utilisation factor in providing continuous base load operation, and because coal is a relatively low cost energy source in Australia.
While coal contributed 64 per cent of total electricity generation in 2012–13, this share has declined from 77 per cent in 2001–02.
In 2012–13, coal-fired generation declined across all states in Australia, with black and brown coal fired generation dropping to their lowest levels since 1997–98.
Gas is Australia’s second largest source of electricity generation, accounting for 20 per cent of generation in 2012–13.
In contrast to the decline in coal-fired generation, natural gas-fired generation increased in 2012–13, supported by new capacity coming on line in Victoria.
Renewable energy sources, mainly hydroelectricity, wind and bioenergy, accounted for the remaining 13 per cent of electricity generation in 2012–13.
The share of renewables in generation has followed an upward trend since 2008–09.
Sources: BREE 2014 Australian Energy Statistics.

19. Australia’s electricity generation fuel mix
Coal fired generation continues to decline: now 64% of total
Use of gas and renewables increasing
Source: BREE 2014, Australian Energy Statistics, Table O.

20. Committed electricity generation projects: Number and nominal value
As at October 2014, 16 committed generation projects with $3.5 billion capital cost
Source: BREE 2014, Electricity generation major projects.

21. Committed projects: Additional capacity
As at October 2014, additional planned capacity of committed projects is 1580 MW
Around 3% of existing Australian generation capacity
Source: BREE 2014, Electricity generation major projects.

22. Committed projects: type of fuel
As at October 2014, all committed electricity generation projects use renewable energy
Source: BREE 2014, Electricity generation major projects.

23. Installed capacity and electricity use, NEM
Source: BREE, ESAA, Global roam.

24. Solar PV installations
Around 1.2 million rooftop PV installations
15% of Australian households now have solar PV
Solar 1.5% electricity generation in
Source: BREE; Clean Energy Regulator.

25. Thank you allison.ball@bree.gov.au
Fuel input prices, prospective growth in electricity demand, and electricity price signals drive investment.
Decisions to add generation capacity may depend more on the need to replace or refurbish ageing plants, with the choice of fuel for new capacity determined by the long‑run marginal cost of different generation technologies, and policy settings.
Renewable energy projects constitute 54 per cent of total proposed new capacity in the investment pipeline and 73 per cent of total capital expenditure.
Wind projects account for 47 per cent of total planned capacity and 66 per cent of the value of proposed electricity generation projects in the investment pipeline.
Gas-fired generation projects represent the largest share of investment in the non- renewable energy mix and 31 per cent of total additional planned capacity.