The Guardian - Michael Slezak |
Nick Evershed
Estimated cost of moving all electricity, industry and transport onto renewables by 2050 would be $800bn, a saving of $90bn
 |
| Three scenarios in which Australia moves to 100% renewable energy by 2050 show it would save money.
Photograph: Carla Gottgens/Bloomberg via Getty Images
|
Transitioning Australia to 100% renewable energy by 2050 would cost
less than continuing on the current path, according to a new report.
Building the infrastructure to supply renewable energy for all
electricity, transport and industry would cost about $800bn between now
and 2050, the report from the institute for sustainable futures at the
University of Technology Sydney, found.
That's about $650bn more than continuing with the status quo. But by
removing the need for fossil fuels such as coal, gas and oil, it would
save the economy up to $740bn, saving $90bn over the period to 2050, the
report found.
Fuel cost savings would cover 110% of the capital investment needed to transition the economy.
The report is the first comprehensive modelling study to examine a
scenario where not just electricity, but also all transport and heat
used by industry, is transitioned to 100% renewable energy in Australia.
It uses a model developed by the German Aerospace Agency and
Greenpeace, which was relied on to help inform how Germany would
implement its 80% renewable target for 2050, and by the
Intergovernmental Panel on Climate Change (IPCC) for some of its
scenario testing.
Commissioned by GetUp and Solar Citizens, it examines three scenarios for Australia's energy system.
The first is based on a continuation of current policies and
government forecasts, in which coal, gas and other fossil fuels continue
to be used. The second scenario sees electricity generation is almost
completely transitioned to renewable energy by 2030, but gas and oil
continue to be used for heat and transport.
In the third scenario electricity generation is completely
transitioned to renewable energy by 2030, and all transport and heat
used in industry are transitioned by 2050. Renewable synthetic fuels
replace fossil fuels in some cases where electrification is difficult,
such as air travel and long distance freight.
Since many of
Australia's coal-fired power stations are ageing,
the first scenario requires considerable infrastructure investment,
with $150bn being spent by 2050. Almost half that would be spent on
infrastructure for fossil fuel-based electricity generation.
The model suggests that both renewable scenarios become cheaper than the status quo as early as 2020.
In the modest renewable scenario, about $600bn would need to be spent
to source all electricity from renewables. Most of that would need to
be spent on wind and solar PV – $258.1bn and $167.9bn, respectively.
In that scenario, significant investment in solar thermal and
geothermal would also be needed, since they can provide power on demand
and fill any gaps when wind and solar are not producing much
electricity – $97.8bn is spent on a combination of those in the
scenario.
In the ambitious scenario, most transport is electrified, so that it
can run on electricity from renewable sources. That increases the demand
for electricity, requiring more investment in electricity generation.
But Australia currently spends more on oil for transport, than it
does on all other forms of energy combined. By almost completely
eliminating the need for any oil, the ambitious 100% renewable scenario
emerges as the cheapest, overtaking the less ambitious renewable
scenario by 2035.
By using a mix of different renewable energy sources, the scenarios
all maintain an electricity network that is as reliable as the current
one.
The authors consulted with the Clean
Energy
Council to ensure the scenarios grew the renewables industries at rates
that would be feasible. It involves increasing wind installations by
2,600MW a year for 15 years, which is in line with what Germany did
between 1999 and 2014. And solar PV would need to be installed at a rate
of 4,500MW per year to 2030, which is about four times what was
installed in Australia in some previous years.
Study author Sven Teske from the University of Technology Sydney,
said work that combined energy for transport and electricity was needed,
since electrifying cars would have a huge impact on the electricity
network.
"This models across all sectors, which gives us a very good overview
of different technologies and the interaction of those technologies,"
Teske said.
The modelling work doesn't examine what policies will be needed to
achieve the scenarios, although it does assume in the renewable
scenarios that current coal-fired power stations are phased out by 2035.
Miriam Lyons, a senior campaigner at GetUp, said the $800bn
investment needed to transition the economy could be boon for the
economy.
"If we decide to go all the way to 100% renewable energy, Australia
can get an $800bn slice of the global renewable investment boom. That's
something that Australia is sorely in need of right now," she said.
"There is a great big gap that's been left by the end of the mining
investment boom."
"It turns out we can get to 100% renewable energy quite fast, and it turns out it saves us money," Lyons said.
Olivia Kember from the Climate Institute told Guardian Australia:
"This modelling adds to the growing body of evidence that Australia is
completely capable of decarbonising its electricity system. But this
won't happen without a comprehensive policy package to replace our
high-carbon coal stations with clean energy."
Mark Diesendorf from the University of New South Wales said the
report was a valuable study for examining possible renewable energy
futures in Australia. But he pointed out it did not model how fast
Australia could transition its workforce to cope with the energy
transition. "The studies to explore possible timescales of the
transition are still to be done," he said.
Links