Energy in Australia • May 2013 Foreword
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Energy in Australia May 2013 BREE 2013, Energy in Australia 2013, Canberra, May. © Commonwealth of Australia 2013 This work is copyright, the copyright being owned by the Commonwealth of Australia. The Commonwealth of Australia has, however, decided that, consistent with the need for free and open re-use and adaptation, public sector information should be licensed by agencies under the Creative Commons BY standard as the default position. The material in this publication is available for use according to the Creative Commons BY licensing protocol whereby when a work is copied or redistributed, the Commonwealth of Australia (and any other nominated parties) must be credited and the source linked to by the user. It is recommended that users wishing to make copies from BREE publications contact the Chief Economist, Bureau of Resources and Energy Economics (BREE). This is especially important where a publication contains material in respect of which the copyright is held by a party other than the Commonwealth of Australia as the Creative Commons licence may not be acceptable to those copyright owners. The Australian Government acting through BREE has exercised due care and skill in the preparation and compilation of the information and data set out in this publication. Notwithstanding, BREE, its employees and advisers disclaim all liability, including liability for negligence, for any loss, damage, injury, expense or cost incurred by any person as a result of accessing, using or relying upon any of the information or data set out in this publication to the maximum extent permitted by law. 978-1-922106-79-7 BREE - Energy in Australia (print) 978-1-922106-80-3 BREE - Energy in Australia (pdf) 978-1-922106-81-0 BREE - Energy in Australia (word) Contributors: Section 1: Tom Willcock and Nhu Che; Section 2: Nhu Che and Kate Penney; Section 3: Clare Stark and Pam Pham; Section 4: Nhu Che and Tom Willcock; Section 5: Tom Willcock; Section 6: Nhu Che and Pam Pham; Section 7: Alex Feng and Martin Nguyen; Section 8: Pam Pham and Martin Nguyen; Section 9: George Stanwix and Alex Feng; and Section 10: Tom Willcock. Produced and compiled by Tom Willcock, Nhu Che and Caitlin McCluskey. Acknowledgement: Special thanks to Quentin Grafton for his valuable guidance and contributions. Acknowledgements to Wayne Calder and BREE and RET colleagues for comments on this report. Postal address: Bureau of Resources and Energy Economics GPO Box 1564 Canberra ACT 2601 Australia Phone: +61 2 6276 1000 Email: [email protected] Web: bree.gov.au ii Energy in Australia • May 2013 Foreword Australia is blessed with abundant fossil fuel and renewable energy sources, which have helped our nation to achieve the high standard of living that Australians currently enjoy. These resources generated $77 billion worth of energy exports in 2011–12 while also providing Australian households and businesses with a secure, reliable and affordable domestic energy supply. Having quick and easy access to up-to-date information on the state of our energy sector is essential as we seek to smooth the way from traditional energy sources to new and sustainable technologies. In order to achieve this transition, the Australian Government has developed a policy framework based on rigorous analysis and data that promotes a secure, resilient and efficient energy system. As outlined in the Energy White Paper, released at the end of 2012, our policy priorities are to: (1) Develop better energy market outcomes for consumers; (2) Accelerate our clean energy transformation; (3) Develop Australia’s critically important energy resources; and (4) Strengthen the resilience of our energy policy framework. As Energy in Australia 2013 shows, Australia has a bright future with ample opportunities for growth. Investments, supported by a market-based policy framework, will ensure that Australia will maintain its’ pre-eminence among developed economies Energy in Australia • May 2013 iii as a major energy producer. Continued support for research and development means that we are projected to become a leader in the deployment of renewable energy technologies. In addition, ongoing support for energy efficiency initiatives by the Australian Government will help the private sector and households to reduce their electricity costs and improve energy productivity. I highly recommend Energy in Australia 2013 to all Australians. It provides a valuable ‘state of play’ as well as the facts and figures to help maintain a robust approach to achieving a clean, bright and secure energy future. The Hon Gary Gray AO MP Minister for Resources and Energy iv Energy in Australia • May 2013 Contents Foreword iii Data sources viii Abbreviations and acronyms ix Glossary xi 1. Overview 1 Energy production 1 Domestic energy consumption 3 Energy exports 7 2. Energy consumption 9 End-use energy intensity 10 Energy consumption, by energy type 13 Energy consumption, by sector 16 Energy consumption, by state 23 3. Electricity 25 Industry structure 25 Production 28 Capacity 33 Transmission 35 Prices 37 4. Clean Energy 46 Production 47 Clean energy development 56 Outlook 58 Energy in Australia • May 2013 v 5. Coal production and trade 63 Production 63 Trade 65 Prices 69 6. Gas production and trade 71 Production 71 Trade 75 Prices 78 7. Petroleum production and trade 81 Production 81 Trade 82 Prices 87 8. Liquid fuels refining 89 Production 89 Capacity 90 Fuel standards 92 Non-conventional liquid fuels 93 Prices 96 9. Transport and infrastructure 100 Energy consumption 100 Fuel efficiency 103 Port capacities 107 10. Energy Research and Development 110 Appendix 1—Current and proposed energy projects 114 Major electricity projects 114 Major new coal, oil and gas projects 117 vi Energy in Australia • May 2013 Appendix 2—Units, prefixes and conversion factors 121 General 121 Conversion between units of energy 122 Conversion factors 122 Energy content of gaseous fuels 123 Energy content of solid fuels 124 Boxes Generation costs in Australia 31 Solar energy in Australia 50 Unconventional gas in Australia 73 Non-conventional transport fuels in Australia 95 Energy in Australia • May 2013 vii Data sources The information contained in Energy in Australia 2013 is obtained from a number of BREE and other sources. Key amongst which are: Australian Bureau of Statistics—abs.gov.au Australian Energy Market Commission—aemc.gov.au Australian Energy Market Operator—aemo.com.au Australian Energy Regulator—aer.gov.au Australian Institute of Petroleum—aip.com.au Bureau of Resources and Energy Economics—bree.gov.au BP Statistical Review of World Energy—bp.com Clean Energy Council—cleanenergycouncil.org.au Clean Energy Regulator—ret.cleanenergyregulator.gov.au Department of Climate Change and Energy Efficiency— climatechange.gov.au Department of Resources, Energy and Tourism—ret.gov.au EnergyQuest—energyquest.com.au Energy Supply Association of Australia—esaa.com.au Geoscience Australia—ga.gov.au Global Roam Pty Ltd—nem-review.info International Energy Agency—iea.org Ports Australia—portsaustralia.com.au viii Energy in Australia • May 2013 Abbreviations and acronyms ABS Australian Bureau of Statistics AEMC Australian Energy Market Commission AEMO Australian Energy Market Operator AER Australian Energy Regulator ARENA Australian Renewable Energy Agency BREE Bureau of Resources and Energy Economics CCS carbon capture and sequestration CSG coal seam gas EDR economic demonstrated resources ERA Economic Regulation Authority (Western Australia) ESAA Energy Supply Association of Australia IEA International Energy Agency LNG liquefied natural gas (principally methane) LPG liquefied petroleum gas (principally propane and butane) LRET Large-scale Renewable Energy Target NEM national electricity market NER national electricity rules NGL natural gas liquid hydrocarbons, other than methane, derived from the natural gas stream in separation and/or liquefaction facilities Energy in Australia • May 2013 ix OECD Organisation for Economic Cooperation and Development OPEC Organization of the Petroleum Exporting Countries ORF other refinery feedstock R&D research and development RET Department of Resources, Energy and Tourism RET Renewable Energy Target SRES Small-scale Renewable Energy Scheme STTM Short Term Trading Market (gas) x Energy in Australia • May 2013 Glossary Advanced biofuels: High energy drop-in liquid fuels derived from sustainable sources of organic matter that do not typically compete with food or feed production, for example, biofuels produced from wood residues, non-edible oilseeds or algae. Bagasse: The fibrous residue of the sugar cane milling process that is used as a fuel (to raise steam) in sugar mills. Biogas: Landfill (garbage tips) gas and sewage gas. Also referred to as biomass gas. Black coal: Hard coal with high energy content. In Australia, anthracite, bituminous and sub-bituminous coals are referred to as black coal. Brown coal: Has a low energy content (gross calorific value less than 17 435 kJ/kg) and high ash content. It is unsuitable for export and is used to generate electricity in power stations located at or near the mine. Also referred to as lignite. Coal by-product: By-products such as blast furnace gas (from iron and steel processing), coal tar and benzene/toluene/xylene (BTX) feedstock and coke oven gas (from the coke making process). Coal seam gas: Methane held within coal deposits, bonded to coal under the pressure of water. It may also contain small amounts of carbon dioxide and nitrogen. Also referred to as coal seam methane and coal