Do you want to learn more about Australia’s renewable energy options? In 2019, renewables contributed over 16.2% of Australia’s generated electricity and 6% of the final energy consumption.

As a result, even while renewable energy is on the rise in the country, it has a long way to go before it can replace the likes of coal, gas, and nuclear power.

This article will examine some statistics on Australia’s progress towards renewable energy, the viability of doing so with current technology, and which upcoming developments might help accelerate its adoption, as well as which areas need improvement, and it will also provide helpful tips for anyone looking for additional green options to improve their lives.

Read on to learn everything you need about the increasing adoption of renewable energy sources in Australia, such as solar panels, wind turbines, and more. 

What Exactly Is Renewable Energy?

To put it simply, renewable energy is generated from resources that are naturally replenished and thus never depleted.

There are as many renewable energy methods as different types of energy found in nature.

In 2021, solar (12%), wind (10%), and hydroelectricity (6%) accounted for 29% of Australia’s total electricity generation.

As compared to the previous high of 26% in the mid-1960s, the percentage of renewables in the overall production of electricity in 2021 was indeed the highest ever.

The spread of renewable production has more than doubled over the past decade, with solar and wind as the key drivers.

The electricity generation from rooftop solar panels increased by 29% in 2021, with an annualised rate of 28% over the previous decade.

Production from wind turbines increased by 19% in 2021 and at an annualised rate of 15% over the previous decade.

Since its peak in the early 2000s, hydropower generation has been hovering at a relatively stable level, depending on rainfall & market conditions, while losing ground to other, more diverse forms of electricity generation.

Large-scale solar production has recently begun fast growth. With a five-year growth rate of 1,747%, massive solar generation has gone from being insignificant before 2016 to accounting for 4% of any Australian energy production in 2021.

Types Of Renewable Energy

Standard Technologies

• The solar energy sector is among the most prominent in the world.
• When it comes to renewable energy sources, the wind is the most common.
• Hydroelectricity has become one of the earliest forms of renewable energy.

Technologies For Capturing Energy

• The use of geothermal heat as a source of power
• Bioenergy
• Oceanic power.

Grid Augmentation Technologies

• Electricity storage batteries
• The need for electricity can be anticipated with the use of smart technologies.

Energy From Renewable Sources

To generate electricity, renewable energy sources like the sun, wind, water, and trees are harnessed. Australia is blessed with abundant renewable energy sources, and the country’s most forward-thinking corporations are increasingly investing in renewable power plants.

Compared to traditional grid electricity, renewable energy sources can provide significant financial benefits.

Businesses can use this to lessen their carbon footprint, improve their green image, and safeguard themselves against price spikes in the future.

On-site generating is the preferred renewable energy source for businesses in Australia. Sun photovoltaics (PV), winds, and biomass/biogas are all commonly utilised.

Wherever possible, many companies will elect to buy GreenPower from their energy provider to reduce their carbon footprint.

Investment in renewable energy has a wide range of potential costs and advantages. Consult a third-party service or certified designer to help you get the most out of your energy and budgetary investments.

PV Solar

Crystalline cells absorb sunlight and convert it into electricity that can be utilised locally or sent to the power grid; this type of energy is known as solar photovoltaic (PV) power.

Solar energy adoption in Australia is the highest of any country. The number of solar PV systems installed on U.S. rooftops has surpassed 3 million as of January 31, 2022.

Saving money on energy costs by using solar panels has been demonstrated to be a viable option. Loans may usually be repaid from the reduction of energy costs.

However, installation may require a considerable initial expenditure with a repayment period of roughly 5 to 7 years. Rebates and subsidies may be offered in your region.

On-site solar generation is typically the primary source of energy for solar systems. When a solar output is insufficient, grid power makes up the difference.

The opposite is true when generation is abundant; excess power is often sold into the grid at a much cheaper rate than it would cost to acquire.

For commercial buildings with substantial daytime electricity consumption and sufficient sun-exposed roof space, solar power is an attractive option.

Financial benefits from solar installations depend largely on the demand profile and power rate.

Storage Of Batteries

Businesses can benefit from storing renewable energy in a variety of ways. On-site renewable energy generation may be ramped up without incurring additional costs beyond what would be covered by the grid price of electricity thanks to battery storage.

Having batteries on hand also allows a company to use the grid’s power during off-peak hours when it’s cheaper (off-peak). In such a blackout, it can be used as a backup.

Rechargeable lithium-ion batteries are commonplace, powering everything from mobile devices to large-scale data centres. It is anticipated that commercial and transportation applications will become economically viable in the next few years.

Australian businesses and academic institutions are looking for alternatives to lithium-ion batteries for use in industrial settings because of worries about their environmental consequences and anticipated material shortages. Among these are:

• Flow batteries, which use liquids like zinc-bromine rather than solid components, are getting very close to being affordable.
• Ultracapacitors with a large storage capacity can outperform lead-acid batteries in any charging scenario.
• Research from the University at Wollongong has led to the development of sodium-ion batteries, which make use of elements that are both abundant and cheap while also having a low impact on the environment.
• Australian firm Gelion is working on gel-based zinc-bromine batteries with performance on par with lithium-ion batteries to bring them to market for residential and commercial use.
• Battery management software advancements allow for the reuse of rechargeable car batteries after the end of their useful life for applications in which lower capacity is acceptable, mitigating growing environmental and safety concerns over the one-time use nature of lithium-ion cells.

Wind

In wind energy, turbines use the wind’s kinetic energy to generate electricity. More than 30 per cent of Australia’s renewable energy comes from wind.

To this day, it is the most cost-effective renewable energy option for industrial or commercial use.

Wind power has remained at the forefront of a renewable energy wave thanks to constant design advances.

The rotor diameters & hub heights of turbines have increased throughout the years, allowing for greater energy collection with each turbine.

Lightening the stress on large blades’ aerodynamics, gravity, and materials is a common practice. The newest generation of smart turbines can continuously monitor and analyse data.

Even though wind energy accounts for a sizable portion of the nation’s renewable energy output, however, in comparison to solar PV for the on generating, it is more expensive.

The purchase of wind energy located elsewhere is the preferred option for large corporations looking for a reliable, low-cost renewable energy supply.

In some industrial settings, solar photovoltaic (PV) systems can be further strengthened by utilising wind power generated on-site.

Two mining businesses in Western Australia, for instance, have installed wind turbines and solar photovoltaic panels. Because of this, we can run entirely on renewable energy and prevent any disruptions to our network.

Bioenergy

It is possible to generate bioenergy from the combustion or decomposition of any form of organic matter. When heated, biomass can be converted into natural gas or burned directly.

Methane and carbon dioxide (CO2) found in biogas can be converted into useful energy for manufacturing.

Using bioenergy is cost-effective and technologically feasible, and it can also aid in recycling and decreasing carbon emissions.

The most common scenario in which bioenergy is used is when cheap biomass is located close to where it is needed. Manufacturing in the food, paper, and dairy sectors is also relevant.

Liquid biofuels, such as ethanol, low-carbon diesel, and aviation fuels, can all be produced using biomass as a feedstock.

Hydropower

Hydroelectricity, which uses the kinetic energy of flowing water, is a well-established renewable energy option. In 2018, about 7.5% of Australia’s electricity came from hydropower.

A river dam is the most common type of hydroelectric generator, and the energy it produces comes from the rapid descent of pressurised water via massive turbines.

Hydropower generation could be increased by using smaller-scale systems installed in rivers.

Geothermal

The energy stored as heat inside the earth is used to generate electricity in a process known as geothermal power.

Heating and cooling systems, water heaters, and other utilities can tap into the relatively constant earth’s surface temperature with the help of pumps or metal poles. 

Because the ground maintains a relatively constant temperature year-round, it can be used as a heat sink in the summer and a source of warmth in the winter.

In most cases, air-source heat pumps are preferable to geothermal heat pumps due to the lower operating expenses associated with the latter.

It is also challenging to retrofit geothermal energy systems after they have already been built. The advantages of geothermal heat pumps are at their peak in regions where the annual cooling and heating demands are roughly the same.

This is especially helpful in locations where air-to-air heat pumps are inefficient due to low temperatures.

Institutions such as universities, hospitals, and hotels are good examples of places where this could be used. In Australia, geothermal energy has been used to heat municipal swimming pools.

Access to geothermal heat is not usually beneficial for industrial firms because they already generate substantial amounts of waste heat, which may be easily recovered. 

Yet, underground mines that have ready accessibility to low-temperature geothermal can recover heat to meet their heating and cooling demands at a reasonable cost, hence increasing site efficiency.

Power Purchase Contracts

Space and resources are typically the limiting factors in on-site renewable energy generation. To directly obtain renewable energy generation located off-site, several businesses have turned to power purchase contracts (PPAs).

In PPAs, providers finance and own renewable energy systems, then sell the generated electricity to commercial customers at a discount compared to grid electricity.

In this way, companies can get renewable energy at below-retail prices and without having to invest in their infrastructure.

PPAs are ideal for satisfying major, long-term energy requirements for 10 to 15 years since they provide price assurance for energy through a current pricing contract.

Well-negotiated power purchase agreements (PPAs) can help businesses save up to 40 per cent on their electricity costs while boosting their “green” cred.

It is essential to have a thorough familiarity with the energy market or key participants in the field if you want to negotiate a fruitful PPA. Help from a professional is recommended.

Renewable Energy Financing

A lack of funds and other investment constraints might prohibit many businesses from reaping the enormous financial benefits that the upfront purchase of renewables can offer.

Financial options are available to help companies overcome these challenges and reap the benefits of the growing use of renewable energy.

This Clean Energy Finance Corporation (CEFC) collaborates with financial institutions to provide advantageous financing options at competitive or even lower interest rates than the market typically offers.

There are a variety of structured financing options available for commercial solar PV installations.

When a company does not have outright ownership of a structure or lot, negotiating with the property’s proprietors to install renewable energy sources as part of a lease’s stipulations may be a viable option.

Many sources of environmentally friendly leases are available from the Australian government.

FAQs About Renewable Energy

Can Australia go fully renewable?

With the current growth rate of wind farms and solar systems, Australia could be powered 100% by renewable energy shortly after 2030, reaching the emissions reduction target in the Paris Agreement by 2025 – five years early.

Why is Australia a good country for renewable energy?

For a sunny country like Australia, the time required to recover the energy invested in panel manufacture is less than two years, compared with a panel lifetime of 30 years. And when the world is solar-powered, the energy required to produce more panels is non-polluting.

Can Australia be 100% renewable?

The supply of energy will be 41% renewable by 2035, 64% by 2040 and 100% by 2050. Australia became independent from oil imports within one generation.

Where does Australia rank in the world for renewable energy?

In 2021, renewable energy accounted for 29% of Australia’s total electricity generation. Australia is ranked 6th globally on the Renewable Energy Country Attractiveness Index for renewable energy investment and deployment opportunities.

Why doesn’t Australia invest in renewable energy?

Australia’s renewables boom is fading as investors lose confidence, energy council says. Australia’s boom in rooftop solar and large-scale renewables is fading as investors lose confidence, with the lack of coordination by the Morrison government partly to blame, according to the Clean Energy Council.

Conclusion

In 2021, solar (12%), wind (10%), and hydroelectricity (6%) will account for 29% of Australia’s total electricity output, an all-time high.

Throughout the past decade, solar and wind have been the primary factors in the more than doubling of renewable production’s footprint.

The solar energy industry is one of the most important in the world, and it has just been expanding rapidly. In fact, during the past five years, solar production has increased by 1,747%.

Companies that switch to using electricity generated from renewable sources like the sun, wind, water, and trees can lower their carbon footprint, boost their green credibility, and protect themselves from price surges.

Solar photovoltaic (PV) power is the dominant source of energy for businesses in Australia, and onsite generation is the most popular renewable energy option.

Australia has the world’s highest penetration of solar energy, and as of January 31, 2022, more than 3 million solar PV systems had been installed on US rooftops.

Although solar panels have been proven to reduce energy costs, their installation may necessitate a sizable up-front investment with a payback period of around 5–7 years.

The demand pattern and electricity tariff are major factors in determining how much money can be saved by installing solar panels.

Renewable energy storage has many uses for businesses, including allowing them to increase their renewable energy production without increasing expenses, taking advantage of the grid’s power during cheaper off-peak hours, and serving as a backup during a power outage.

While lithium-ion batteries are widely used, others are being developed to solve environmental and safety problems. They include flow batteries, ultracapacitors, sodium-ion batteries, and gel-based zinc-bromine batteries.

Institutions like schools, hospitals, and hotels might benefit greatly from using geothermal heat pumps in areas where the yearly cooling and heating demands are about the same.

Underground mines can recover heat to satisfy their heating and cooling needs at a reasonable cost, despite the fact that access to geothermal heat is not often helpful for industrial enterprises.

If you need to meet large, long-term energy needs for the next 10–15 years, a Power Purchase Agreement (PPA) is your best bet because it guarantees your energy costs won’t increase.

To successfully negotiate a PPA and save up to 40% on electricity bills while improving “green” cred, firms need to have a good understanding of the energy market and seek assistance from an expert.

Businesses can overcome financial barriers and take advantage of renewable energy with the support of a variety of financing solutions, including the Clean Energy Finance Corporation (CEFC) and structured financing. Government of Australia leases are also an option.

Content Summary

• In 2019, renewables contributed over 16.2% of Australia’s generated electricity and 6% of the final energy consumption.
• As a result, even while renewable energy is on the rise in the country, it has a long way to go before it can replace the likes of coal, gas, and nuclear power.
• In 2021, solar (12%), wind (10%), and hydroelectricity (6%) accounted for 29% of Australia’s total electricity generation.
• The spread of renewable production has more than doubled over the past decade, with solar and wind as the key drivers.
• Australia is blessed with abundant renewable energy sources, and the country’s most forward-thinking corporations are increasingly investing in renewable power plants.
• Compared to traditional grid electricity, renewable energy sources can provide significant financial benefits.
• On-site generating is the preferred renewable energy source for businesses in Australia.
• Investment in renewable energy has a wide range of potential costs and advantages.
• Consult a third-party service or certified designer to help you get the most out of your energy and budgetary investments.
• On-site solar generation is typically the primary source of energy for solar systems.
• Businesses can benefit from storing renewable energy in a variety of ways.
• Rechargeable lithium-ion batteries are commonplace, powering everything from mobile devices to large-scale data centres.
• Australian businesses and academic institutions are looking for alternatives to lithium-ion batteries for use in industrial settings because of worries about their environmental consequences and anticipated material shortages.
• More than 30 per cent of Australia’s renewable energy comes from wind.
• To this day, it is the most cost-effective renewable energy option for industrial or commercial use.
• Even though wind energy accounts for a sizable portion of the nation’s renewable energy output, however, in comparison to solar PV for the on generating, it is more expensive.
• The purchase of wind energy located elsewhere is the preferred option for large corporations looking for a reliable, low-cost renewable energy supply.
• In some industrial settings, solar photovoltaic (PV) systems can be further strengthened by utilising wind power generated on-site.
• It is also challenging to retrofit geothermal energy systems after they have already been built.
• The advantages of geothermal heat pumps are at their peak in regions where the annual cooling and heating demands are roughly the same.
• Access to geothermal heat is not usually beneficial for industrial firms because they already generate substantial amounts of waste heat, which may be easily recovered.
• Yet, underground mines that have ready accessibility to low-temperature geothermal can recover heat to meet their heating and cooling demands at a reasonable cost, hence increasing site efficiency.
• To directly obtain renewable energy generation located off-site, several businesses have turned to power purchase contracts (PPAs).
• In PPAs, providers finance and own renewable energy systems, then sell the generated electricity to commercial customers at a discount compared to grid electricity.
• Well-negotiated power purchase agreements (PPAs) can help businesses save up to 40 per cent on their electricity costs while boosting their “green” cred.
• It is essential to have a thorough familiarity with the energy market or key participants in the field if you want to negotiate a fruitful PPA.
• Help from a professional is recommended.
• A lack of funds and other investment constraints might prohibit many businesses from reaping the enormous financial benefits that the upfront purchase of renewables can offer.
• Financial options are available to help companies overcome these challenges and reap the benefits of the growing use of renewable energy.
• There are a variety of structured financing options available for commercial solar PV installations.
• When a company does not have outright ownership of a structure or lot, negotiating with the property’s proprietors to install renewable energy sources as part of a lease’s stipulations may be a viable option.
• Many sources of environmentally friendly leases are available from the Australian government.