Geoscience Reference
In-Depth Information
conservative International Energy Agency, 'alarmingly slow' in relation to the
problem of cutting greenhouse emissions (IEA, 2013: 7).
At least 118 countries, more than half being developing countries, had
renewable energy targets in place by 2013, and 109 had supporting policies
(REN21, 2012: 7). For example, the European Union has a binding 20 per
cent renewables by 2020 target, as has Australia. For at least 30 countries,
renewable energy provides above 20 per cent of the energy mix. Germany, with
its
Energiewende
(energy transition)
programme, leads the world in the transition
from fossil fuels. With renewable sources in 2012 providing 25 per cent of its
electricity consumption and 20 per cent of electricity consumption (up from 6.3
per cent in 2010), it has a target of 45 per cent by 2030. In the United States,
renewables provided 12.7 per cent of total domestic electricity in 2011, up
from 10.2 per cent in 2010, and accounted for about 11.8 per cent of domestic
primary energy production (a similar amount as nuclear power) (REN21, 2012).
Renewable energy comprised 70 per cent of the new generating capacity added
in Europe in 2012. China is now the world's leader in terms of totaled installed
capacity of renewable energy (152 GW) and also the rate of growth, with 23.1
GW of clean energy generating capacity installed in 2012 and US$65 billion
invested in 2012 (PCF, 2012: 13-19).
Total global wind power capacity was 238 GW at the end of 2011, an increase
of more than 20 per cent over 2010. The average rate of increase in capacity has
been about 28 per cent over the last 10 years (GWEC, 2012). In 2011, most wind
power capacity was installed in Asia (52 per cent), ahead of Europe (25 per cent)
and North America (20 per cent), and the EU stands to be overtaken by Asia
in terms of total capacity. China is now the world's largest wind power market,
where wind is some 1.5 per cent of total power generation. Meanwhile, solar
photovoltaic (PV) energy has seen dramatic reductions in cost in recent years
and has moved toward 'grid parity' in terms of its unsubsidized cost compared
with alternatives in many parts of the world. Total global solar PV capacity
increased by 75 per cent in 2011 (EPIA, 2012), and solar technology has been
the major recipient of investment in recent years (PCT, 2012: 11).
These trends underline the opportunities for Australia where the majority of
power generating plants, which are coal and gas fired, will be commercially ripe
for retirement by 2030 and will need to be replaced by 2045 at latest. Bloomberg
New Energy Finance reported in 2013 that for Australia the production of
electricity from unsubsidized wind power is now cheaper than from new-built coal
and gas stations (BNEF, 2013). Moreover, by 2020 energy from large-scale solar
sources will also be cheaper than coal and gas, when carbon prices are factored
in. According to Bloomberg New Energy Finance, 'The Australian economy is
likely to be powered extensively by renewable energy in future, and investment
in new fossil-fuel power generation may be limited, unless there is a sharp, and
sustained, fall in Asia-Pacific natural gas prices' (BNEF, 2013). A carbon price of
AUD$25-50 would ensure their replacement with renewable sources even sooner.
Recent data indicate that Australia's Renewable Energy Target, the carbon
tax and various State-based feed-in tariff schemes have assisted in influencing a
