Australia’s fuel mix is largely fossil fuel based. As of 2020, coal, oil and gas made up 29%, 37%, and 27% of energy consumption, with renewables, accounting for 7%. In 2020, coal and gas had a 54% and 20% generation share in the power sector, respectively, while renewables, including biomass, stood at 25%.
Domestic coal consumption has declined by 28% since 2008.3 The Australian Energy Market Operator (AEMO) projects that 8 GW of the current 23 GW of coal fired power capacity will retire by 2030.
AEMO forecasts a likely decline in domestic gas use. However, total consumption is likely to remain close to 2000 PJ/yr as the government and LNG industry are using the Russian gas crisis as a rationale for expanding gas production.–
Australia’s previous government had pledged AUD 2 billion in fossil fuel financing under their ‘gas-fired recovery’. The Labor government has yet to clarify the status of these spending announcements. At the same time, it is continuing with policies that support the LNG industry and touting carbon capture and storage (CCS) as a viable means for reducing emissions.,