In the face of escalating energy costs, Australian businesses are grappling with an energy crisis as electricity retail prices are predicted to surge across states from July. Consequently, many are pivoting towards a viable solution - renewable energy. This sustainable energy option not only aligns with financial imperatives but also bolsters our environmental credentials. To address our transition to renewables, let's delve into Australia's renewable energy journey: where we've been, where we are, and where we need to be.
Australia is moving rapidly toward renewable energy. However, there is still a long way to go before it can be considered a renewable energy powerhouse. As of 2021, renewable sources contributed 29% to the nation's electricity. Solar energy accounted for 12%, wind energy for 10%, and hydroelectricity for 6%. Although this is the nation's greatest ever output of renewable energy, it is nothing compared to New Zealand. Their power during the same time period was generated by renewable sources at a rate of 82.1%.
The renewable energy landscape across Australian states in 2022 exhibits stark contrasts. Tasmania leads the charge with 99.1% of its electricity generated from renewables, followed by South Australia at 71.5%, Victoria at 36.8%, Western Australia at 35.2%, New South Wales at 30.7%, and Queensland lagging at 22.6%. Historical and geographical factors have shaped this renewable energy distribution. Tasmania reaped the benefits of an abundant supply of hydro-producing rivers.
The Federal Government's Renewable Energy Target, striving to generate 33,000 GWh by 2020, was pivotal in pushing Australia's renewable energy supply to record highs by 2021. The target was achieved a year ahead of schedule in September 2019, yet the journey is far from over.
Currently, New South Wales is stepping up its renewable energy game. The newly elected Labor government is committed to establishing the Energy Security Corporation. This state-owned entity will facilitate renewable energy investment, leveraging an initial $1B investment and collaborating with private entities. The corporation's focus will be on energy storage solutions, such as pumped hydro and community solar batteries.
Several states, including Victoria, the ACT, and Queensland, are investing in the renewable transition. businesses are incentivized with rebates to install rooftop solar. Even if you're not in these states, you might still be eligible for a similar Federal Government rebate.
The linchpin of Australia's renewable transition is infrastructure. The creation of a truly sustainable energy supply calls for investment in wind turbines, solar panels, community batteries, and underground wiring. While government initiatives are vital in building this infrastructure, the active participation of private enterprises is equally crucial.
One way to drive companies to invest in renewable infrastructure is by supporting renewable energy suppliers financially. By doing so, you are not only securing a renewable energy future but also contributing to a cleaner, greener Australia.
Renewable energy is undoubtedly the future of Australian energy. Businesses aspiring to be part of this sustainable future must act promptly. As energy management experts at Energy Action, we can guide you through your renewable energy procurement options to minimise your environmental footprint. Connect us today for an obligation-free discussion or visit our website to explore how you can contribute to a cleaner, greener, and net-zero future for Australia.