Victoria’s Energy Future Fact Sheet Gas For nearly a century, Victorians have enjoyed reliable, secure and affordable electricity. Almost all of this has been generated from brown coal. But brown coal produces high levels of carbon pollution, making electricity production responsible for more than half of Victoria’s total carbon pollution. To move toward a low carbon future we need to develop new energy sources and use current sources in a more sustainable way. We will need to change how and where our energy is generated, and how we use it. Gas-fired electricity provides proven low emissions power and its use is set to grow. Key: Current level of activity Maturity of gas technology in technology development High Low Early stage Pilot (small scale Large scale Pre-commercial Commercially research and testing of the demonstration of (viable with viable development technology) the technology government support) Gas will become increasingly important as we transition to Gas-fired electricity generation is a fully commercial a low carbon future. Under an emissions trading scheme, technology that is widely used around the world. This can investment in gas fired power stations will be more be done in a variety of ways, such as: attractive as coal becomes less cost competitive. Gas also • steam generation where the gas is burnt in a boiler to has the potential to be a reliable backup source of power heat water into steam (like Newport Power Station near to supplement renewable energy, such as wind, by turning the mouth of the Yarra River), on quickly when the wind levels drop. • open cycle gas turbines where the gas is combusted in For these reasons, gas fired electricity generation will make the turbine (like the new power station being built at a much bigger contribution than it does now to the future Mortlake), and electricity generation mix in Victoria. • combined cycle gas turbines (CCGT) where the hot As well as electricity generation, gas provides us with many exhaust from the gas turbine is used to heat water other uses, such as transport fuel in the form of Liquefied as for a conventional steam turbine (this is the most Natural Gas (LNG) or Compressed Natural Gas (CNG), and efficient form of gas power generation technology). as a domestic fuel. CCGT is the most efficient, but expensive way of making Snapshot of the technology power from gas. It has very low emissions and produces Pressurised gas is delivered directly to most homes and around a quarter of the carbon emissions of our best businesses in Victoria for use in cooking, heating and small brown coal fired power plants. scale electricity generation. Victoria’s Energy Future Status of gas in Victoria Location of Victoria’s gas resources Victoria has the most extensive reticulated gas network in Gas Field Gas Pipeline Australia. Gas is used extensively in Victorian homes and businesses for heating, cooking, and other industrial uses. Our gas is also linked to markets on the east coast of Australia. Only a small proportion of Victorian electricity comes from gas-fired power stations but it makes up an important part of our energy capacity. Gas-fired electricity generation is used largely to meet our peak energy demands in summer. As a result, although gas provided less than 5 per cent of all our electricity in 2008, gas-fired power stations provide 20 per cent of capacity in Victoria. This proportion is expected to expand as renewable energy capacity increases and gas will be required to help meet demand when generation from renewable plants cuts out. 050 100 Km The future for gas Gas at a glance Gas will play an increasingly important role in the transition to a low carbon future, so our use of gas will therefore increase. Installed capacity 1940 MW (Vic) There is the potential for new discoveries of gas reserves Per cent of total 19.4% in the Otway and Gippsland basins. capacity (Vic) But in the longer term, bigger pipelines may be needed Largest generator 510 MW Newport, Vic to transport the gas from sources in other states with a (Vic) greater gas resource potential, such as Queensland. Largest generator Largest generator (Aus) 1280 MW The price for gas will also play an important role in its future, (Aus) Torrens Island, SA with the expected global increase in demand for gas Largest generator 4802 MW Kawagoe, Japan impacting on the cost. Our gas prices are currently low by (World) international standards. But because our gas market is Victorian locations Victoria’s gas-fired power stations are in linked down the east coast, if Queensland gas, for example, Melbourne and Gippsland. A new power is developed for export, prices may begin to rise in Victoria. station is being constructed in Mortlake in western Victoria If you would like to receive this information/publication in Authorised by the Victorian Government, an accessible format (such as large print or audio) please 1 Spring Street, Melbourne, Victoria 3000, Australia call the Customer Service Centre on 136 186, ISBN 978-1-74264-088-4 (print) ISBN 978-1-74264-089-1 (online) TTY 1800 122 969, or email [email protected] Disclaimer This publication may be of assistance to you but the State of Victoria and its employees do not guarantee that the publication is without flaw Published by the Department of Primary Industries, May 2010. of any kind or is wholly appropriate for your particular purposes and © The State of Victoria, 2010 therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions For more information about DPI visit www.dpi.vic.gov.au of the Copyright Act 1968. or call the Customer Service Centre on 136 186..