Electricity generation is the largest source of greenhouse gas emissions in Australia, accounting for around one-third of the nation’s emissions, while energy extraction and use in the rest of the economy accounted for a further third making energy the single largest source of Australian emissions. Reducing emissions from energy use via renewable electricity and electrification is necessary for Australia to reach net zero. The Electricity and Energy Sector Plan will build on the strong start the electricity sector has made, with renewable generation in the National Electricity Market increasing from around 15% in 2017 to around 39% in 2023.
Achieving the emissions reductions will be no small task. It will require changes across the board, from energy generation and grid-level storage, to demand side management and reducing or capturing emissions from currently unavoidable uses of fossil fuels. All of this will need to be done while bringing communities on board with changes they may be unfamiliar with or directly benefit from.
ATSE welcomes the Australian Government’s commitment to decarbonise high-emitting sectors guided by the development of sectoral plans. ATSE advocates that the Government should aim for net zero emissions by 2035 – which is technologically possible with the right investments. The Electricity and Energy Sector Plan will be a key pathway to reaching net zero, whether that be by 2035 or by 2050 under the Government’s current legislated target.
ATSE recommends that the Electricity and Energy Sector Plan contains the following elements:
Recommendation 1: Accelerate the development of renewable energy zones and associated transmission, storage and grid stabilisation infrastructure by ensuring that the development of renewable energy infrastructure provides positive social benefits to local communities.
Recommendation 2: Develop additional funding or loan schemes to help low-to middle income households reduce the upfront cost of acquiring solar, battery systems and electric vehicles.
Recommendation 3: Fund upgrades for social housing to install energy efficient appliances, rooftop solar and battery systems.
Recommendation 4: Incentivise landlords to install energy efficient appliances, solar systems and storage capacity.
Recommendation 5: Invest in research and development for next generation negative emissions technologies to help make these a viable method of offsetting unavoidable emissions.
Recommendation 6: Adjust accounting methods for methane emissions to consider greenhouse impacts over a 20-year time horizon, rather than 100 years.
Recommendation 7: Require oil and gas companies to directly measure their methane emissions and adopt international best practice in minimising fugitive methane emissions.