Australia’s main scientific research organisation, along with academics, economists, policy analysis and business people such as National Australia Bank chair Ken Henry, say that the shift to 100 per cent renewables in Australia’s grid is inevitable, and likely by 2050.
A new landmark report by the CSIRO – titled Australian National Outlook – provides a comprehensive vision for what a prosperous Australia can look like throughout the 21st century, and has found that governments need to be proactive in working towards that vision, otherwise Australia risks undergoing a ‘slow decline’.Key to Australia’s future prosperity is for governments to embrace technological change and plan for the transition to a 100 per cent renewable energy grid, along with working cooperatively with other countries to tackle climate change.
NAB’s Ken Henry, the former Treasury Secretary, said that customers and shareholders were putting pressures on companies to adopt a positive vision for the Australian economy that included investments in renewables, which meant Australia was on a pathway towards 100% renewables irrespective of the policy environment.
“Australia’s energy transition is going to happen anyway, almost no matter what the policy framework is. Decisions taken by business leaders today will ensure that by about mid-century, Australia’s electricity sector will be 100% renewables. That’s almost irrespective of what decisions are taken at a policy level.” Henry said in an interview with ABC’s The Business.
“And that’s because, leaders of businesses in the energy sector are having to take investment decisions on behalf of their shareholders right now. Shareholders obviously don’t want to see stranded assets.”
NAB worked with CSIRO to produce the report.
CSIRO’s projections of Australia’s future electricity system show what the future energy mix will look like and how Australia will shift to an electricity market that is almost completely powered by renewable energy, as renewables replace coal and gas, and fossil fuels are pushed out of the market.
With proactive policies in place, Australia can each 100 per cent renewables by around 2050, while also lowering electricity prices for Australian consumers.
The CSIRO predicts that under an ambitious policy scenario, Australians would spend between 58 per cent and 64 per cent less on electricity as a proportion of their income than they are today. This is due to both falling energy costs driven by renewables uptake, as well as increased wages through improved prosperity.
Australia’s greenhouse gas emissions could also be reduced to net-zero emissions by 2050, in a plan that both provides a sustainable transition away from fossil fuels, while providing lower energy prices and a strong economy.
If Australia fails to embrace a future energy system powered predominantly by renewable energy, the CSIRO has predicted that it will fall behind in an increasingly competitive global economy, leading to slower economic growth and a drop in living standards for Australians.
CSIRO forecasts that energy prices will be highest under scenarios where there are no established policies to secure investment in renewable energy and guide the transition away from fossil fuels.
“Without stable policy and the investment that flows from it, investors would require higher rates of return, resulting in a cost of wholesale energy that is higher than all other scenarios in the medium term, alongside a slower reduction in emissions” the report said.
This includes a dramatic shift towards electric vehicles, with the CSIRO predicting that electric vehicles will be the cheapest form of transport as early as 2025, with around half of all vehicles to be all-electric by 2040.
Links
- Australian National Outlook 2019 - CSIRO
- Warning of reform or forgo $1.5 trillion GDP windfall
- It’s time for Australia to commit to the kind of future it wants: CSIRO Australian National Outlook 2019
- CSIRO maps outlook for Australia in 2060
- Australia risks 'slow decline' without reform
- By 2060, Australia cities could be cheaper, entirely powered by renewables and you could earn $40k more — if we don’t screw it up
- Cleaner, cheaper electricity: Australian National Outlook 2019
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