Despite short-term challenges such as the coronavirus crisis, Australia will become the world leader in the long-term energy transition, achieving the fastest transition to an overwhelming proportion of renewables in its combination of energy, data and energy. analytics company GlobalData said on Monday.
Australia has a strong portfolio of solar and wind power projects, which are ready to bring investor confidence in the market, GlobalData said.
“The country’s declining cost of distributed energy resources, variable energy and the willingness to provide cheap electricity to its consumers will be strong underlying catalysts for the roadmap towards achieving a 94% renewable generation mix by 2040.” according to the data and analytics company.
“Australia currently has a strong 102 GW renewable portfolio between wind and solar power turbines, comprising projects in early and advanced stages. Of this, 102 GW of wind and solar PV represent almost 90% of the portfolio, ”said Somik Das, Senior Energy Analyst at GlobalData.
“The government has put the last nail in the coffin of coal-fired power plants, as it has no plans to continue coal and gas generators beyond the planned retirement dates. In fact, there is a possibility that coal and gas generators will be phased out sooner if renewables provide greater cost benefits before the 2040 horizon, ”Das noted.
Australia is also home to the world’s largest lithium-ion battery in South Australia, which will be further expanded by 50 percent and has a project to become a major renewable energy exporter.
Under the Australian Power Market Operator (AEMO) 20-year plan for Australia’s power generation, by 2034-35, renewable generation can sometimes deliver 85% of generation. By 2040, in the sea-change scenario, variable renewable energy could account for up to 94.2 percent of electricity generation.
“This system is now undergoing the largest and fastest transformational change in the world since its inception more than 100 years ago,” the AEMO report said.