Australia Energy Transition Market

By Author: khansurry
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The Australia energy transition market outlook provides analysis and trends on Australia’s energy transition from non-renewable to renewable sources. 2030 outlook sees renewables experience a rapid growth in power capacity and generation outlook in Australia, due to the acceleration of investment towards climate change targets.

The key sectors in the Australia energy transition market are renewable energy, electric vehicles, renewable fuel, CCS/CCU, and hydrogen.

Renewable energy

The key renewable energy policies in Australia are The Renewable Energy Target (RET) scheme, State-level FiT programs, Australia’s Climate Change Target 2030, Offshore Clean Energy Infrastructure Regulatory Framework, Clean Energy Finance Corporation (CEFC), and Emissions Reduction Fund (ERF).

The Australian government have the “Green House Gas (GHG) Mitigation Strategy”, part of which includes significantly decreasing its coal based thermal power generation in next decade. The government plans to compensate this downfall with gradual increase in renewable power capacity. Several prominent banks have also issued statements ...
... to stop financing coal power plants.

Electric Vehicles

Despite the growth of electric vehicles, models and availability, Australia still lags behind other countries such as Norway and the UK. Government support have led to a positive impact on the procurement of electric and domestic bus industry, giving preference to Australian-made and assembled vehicles. There are now six electric buses on the market from BCI Bus, BusTech Group, Custom Denning, Nexport BYD Gemilang, Nexport BYD Volgren and Yutong. The demand from freight and logistics sector for heavy electric vehicle models is also increasing. Expected brands launching its models in the upcoming years include ACE-EV, Fuso, JAC Motors and Volvo Group.

Renewable fuel

Bioenergy has become increasingly important in the low carbon strategy, however, the lack of sound policies from the Australian government has resulted in minimal progress.

The Ethanol Production Programme Grant (EPG) scheme was created to support production and deployment of ethanol as sustainable fuel but was ceased in 2015. Hence the high consumption pre 2015 and the gradual decrease post 2015. From 2016, there has been a reduction in the consumption of biofuels, due to lower world crude oil prices, high feedstock prices and a changing policy framework. Although there is no national mandate in place, the government promotes the use of biofuels via excise tax rebates, mandates, fuel quality standards, grant programmes and import tariffs.

CCS/CCU

The Australian government have made some policies and incentives to encourage CCS/CCU projects. The legal framework for encouraging and regulating carbon capture and storage in Australia is divided among the Commonwealth states and territories. These policies are Greenhouse Gas Storage Acreage Release, Carbon credits, First Low Emissions Technology Statement, Commonwealth CCS-specific regulations, and State and territory CCS-specific regulations.

Hydrogen

Hydrogen developments have been accelerating supported by policies and projects. The Australian power market promises a significant growth in renewable hydrogen. In 2020, the country was on the top three exporter of hydrogen in APAC market. The growth of renewable hydrogen can help the country to reach its goal of zero emission.

In 2020, the Australian government announced it National Hydrogen Strategy. The adoption of the National Hydrogen Strategy by all Australian governments stimulated domestic and international investor interest in the use of clean hydrogen as a chemical feedstock, for energy storage and for exporting renewable energy. Under this strategy the government plans to create, test and prove Australia’s clean hydrogen supply chains, encourage global markets and develop cost-competitive production capability.

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