The release today of the Bureau of Resources and Energy Economics’ (BREE) annual publication, Major Electricity Generation Projects shows the transformation of Australia’s energy mix has begun, with 37 per cent of the committed new investment in gas and 41 per cent in wind.
BREE's report showed that there are 19 major electricity generation projects at an advanced stage of development – either committed or under construction – expected to deliver 2,668MW and investment of $4.839 billion, and a further 167 projects at a less advanced stage of development.
Coal-fired power generation, which currently accounts for around 75 per cent of Australia’s electricity generation, will continue to provide much of Australia’s electricity requirements in the period ahead, with 17 per cent of the committed new investment in upgrades to existing black coal-fired power stations.
While this new investment is welcome, the Minister for Resources and Energy Martin Ferguson AM MP said that we need more projects to move to the committed stage if we are to continue to meet Australia’s energy demands in the future, and investors require policy certainty to make these investment decisions.
“While these figures are encouraging, we still haven’t seen the actual investment on the ground in terms of the construction and operation of new plants in recent years that is going to be needed to meet demand”, Minister Ferguson said.
“The fall in the number of completed electricity projects over the twelve months to October 2011 highlights the need for investment certainty in the electricity generation sector.
“According to BREE’s report only two electricity generation projects – both wind farms, delivering 179MW and investment of $488 million – have been completed in the previous twelve months.
“This compares with 11 projects completed in the twelve months to October 2010, delivering 2,302MW and investment of $3.126 billion; and 17 projects completed in the twelve months to October 2009, delivering 3,462MW and investment of $4.508 billion.
“The Government last week achieved passage of its carbon price legislation through the Australian Parliament, to provide greater certainty for the energy sector to support investment and a transition to clean energy technologies. The biggest threat to that certainty and meeting our investment requirements is Tony Abbott and the Coalition.
“The figures released today show clearly why investors in our electricity generation sector demand policy certainty from both sides of politics.
“A reliable supply of electricity is fundamental to our standard of living and economic wellbeing, and Australia’s energy security depends on new investment in electricity generation.
“Investors have clearly shown that the lack of bipartisanship on climate policy is unacceptable.
“As a Government we have sought – through a market mechanism – to provide the policy framework to bring on future investment in this important sector.
“We now need a mature approach from all serious political parties to ensure that sufficient projects in the pipeline identified through BREE’s work are pulled through to commissioning to meet our energy requirements.”
BREE is a professionally independent, economic and statistical research unit within the Department of Resources, Energy and Tourism.
The full report is at www.bree.gov.au