Coal and gas to remain Aus energy backbone - Minister

4th June 2021 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Federal Energy and Emissions Reduction Minister Angus Taylor has again reiterated the need for coal and gas in the Australian energy mix, despite the increase in the use of renewable energy options.

The 2021 Australian Energy Statistics, released by the Department of Industry, Science, Energy and Resources, has shown that some 24% of Australia’s electricity came from renewable sources last year, up from 21% in 2019.

The increase was driven by an uptake in solar installations, with solar power now accounting for some 9% of total generation, up from 7% in 2019, with one in four Australian homes having solar power.

However, Taylor said on Friday that the pace of growth in renewables only highlighted the important role that more traditional and reliable sources of energy would play in the system.

He said that the increase in renewable energy use underscored the need for continued essential generation from dispatchable sources to balance and complement the high levels of variable supply entering the energy system to deliver affordable, reliable power for consumers.

He noted that gas-fired generation grew in Queensland and the Northern Territory last year, with overall generation remaining relatively stable in recent years.

Coal also continued to be the backbone of our electricity supply, representing 54% of total generation in 2020 and playing an essential role as a stable, baseload source of affordable and reliable power.

Taylor said the federal government is ensuring Australia’s record level of renewable energy is complemented by dispatchable generation. 

“My focus is ensuring Australia’s energy system remains reliable and affordable for all Australians,” Taylor said.

“The government is taking strong action to stabilise the grid and get the energy generation balance right to ensure Australians can access the reliable and affordable power they need, when they need it.

“We are a renewable energy powerhouse, and this is something we should be proud of, but renewables need reliable generation to back them up and maintain pressure on prices when the sun isn’t shining and the wind isn’t blowing.

“Reliable sources of energy, like coal and gas, will continue to be needed to keep the lights on and deliver 24/7 power for households and businesses as more and more renewables enter the system.”