Energy Security and the role of Natural Gas in Australia
- D.Moran
- Apr 30, 2024
- 2 min read
Australia's energy security can be understood through several key aspects:
Diversification of Energy Sources: Natural gas provides a diversification of energy sources in Australia's energy mix, reducing reliance on more carbon-intensive fuels like coal. This diversification helps mitigate risks associated with supply disruptions or price fluctuations in other energy sources.
Reliable and Flexible Energy Supply: Natural gas-fired power plants provide a reliable and flexible source of electricity generation, particularly to support intermittent renewable energy sources like wind and solar. Gas-fired power plants can ramp up or down quickly to meet fluctuating demand, enhancing grid stability and reliability.
Industrial and Residential Use: Natural gas is widely used in industrial processes such as manufacturing, refining, and chemical production. It is also a common fuel for residential heating, cooking, and hot water systems. Ensuring a steady supply of natural gas is crucial for maintaining industrial competitiveness and meeting household energy needs.
Export Potential: Australia is one of the world's largest exporters of liquefied natural gas (LNG), with major projects located in Western Australia and Queensland. The export of LNG contributes significantly to Australia's economy, providing export revenue and supporting jobs. However, domestic energy security considerations must balance the demand for LNG exports with ensuring an adequate supply for domestic consumption.
Transition to Lower Emissions: While natural gas is considered a cleaner-burning fossil fuel compared to coal, it still produces greenhouse gas emissions. As Australia transitions to a lower-carbon economy, natural gas can play a role as a transitional fuel, particularly in replacing more carbon-intensive coal-fired power generation. However, efforts to mitigate methane emissions along the natural gas supply chain are essential to maximize its environmental benefits.
Australian electricity generation - fuel mix
The figure shows Australian electricity generation fuel mix in shares from 1996-97 to 2021-22 and calendar year 2022. Fossil fuels contributed 68% of total electricity generation in 2022, including coal (47%), gas (19%) and oil (2%). Coal’s share of electricity generation has declined from 83% in 1999-00 while the shares of natural gas and renewables has increased. Renewables contributed 32% of total electricity generation in 2022.
Australian electricity generation - fuel mix calendar year 2022
In conclusion, natural gas plays a crucial role in ensuring energy security in Australia by providing a reliable, versatile, and relatively cleaner source of energy. However, balancing the economic benefits of natural gas production and exports with domestic energy needs and environmental considerations remains a key challenge for policymakers and industry stakeholders.
Yet with lack of leadership from our elected officials and grandstanding from independent MP's blocking further exploration, Australia's energy security is in doubt. Which makes the move to Modular Nuclear Reactors more immediate, while also investing in Nuclear Fusion technology.
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