The Government has today released two reports, commissioned by the Australian Centre for Renewable Energy, examining the potential of renewable energy in Western Australia’s Pilbara and Mid West regions.
Minister for Resources and Energy, Martin Ferguson AM MP, in Perth for the Commonwealth Heads of Government Meeting, said this work highlights not only the potential environmental gains from a greater use of renewable energy in these regions but also the economic ones.
“These reports provide us with a much clearer picture for the potential use of renewable energy in the Pilbara and Mid West regions, which are dominated by energy intensive mining and processing activities as well as agriculture,” Minister Ferguson said.
“There are opportunities for wind, solar and bio-energy in both regions, based on the natural resources available. Increasingly expensive traditional fossil fuels such as diesel and gas make renewables an attractive alternative.
“The key is enabling the mining industry to recognise the benefits of renewable energy and look past the high upfront capital costs that may be recoverable over longer periods of time due to lower running costs than conventional fossil fuels.
“The introduction of a price on carbon will further assist the competitiveness of off grid renewables.
“However the reports also highlight that there are barriers to overcome. Reliability of supply is a crucial factor for the mining industry when deciding where their electricity will come from as they are exposed to revenue penalties in the event of process interruptions.
“The reports find hybrid systems like wind or solar combined with diesel or biodiesel as well as investigating options for storage are the most suitable solutions. Hybrid systems provide the capability for renewable energy to sit alongside conventional power generation to save fuel when the renewable energy resource is available.
“The Australian Government continues to maintain an open mind when it comes to clean energy technologies that have the potential to provide workable solutions.”
The reports will be considered by the Australian Centre for Renewable Energy and its successor the Australian Renewable Energy Agency as part of the Government's ongoing support for the development of renewable energy.
The reports by Evans & Peck with Worley Parsons are available on the RET Website.