IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v60y2013icp215-221.html
   My bibliography  Save this article

Australian power: Can renewable technologies change the dominant industry view?

Author

Listed:
  • Molyneaux, Lynette
  • Froome, Craig
  • Wagner, Liam
  • Foster, John

Abstract

With carbon dioxide the major contributor to anthropogenic climate change, being required to reduce the carbon emissions from burning coal for electricity presents a systemic shock to Australian power. The Australian government is committed to the development of its coal seam gas resources for export to lucrative world markets and to transition domestic power generation to greater resilience by moving away from a reliance on coal to lower-emissions intensive gas. Using a commercially available modelling package, PLEXOS, we model what a transition to gas fired generation in the year 2035 would deliver and compare that to a transition to power from renewable technologies. The results indicate that a transition to gas fired generation reduces emissions only marginally and that wholesale prices will be higher than the renewable energy option.

Suggested Citation

  • Molyneaux, Lynette & Froome, Craig & Wagner, Liam & Foster, John, 2013. "Australian power: Can renewable technologies change the dominant industry view?," Renewable Energy, Elsevier, vol. 60(C), pages 215-221.
    • Handle: RePEc:eee:renene:v:60:y:2013:i:c:p:215-221
    DOI: 10.1016/j.renene.2013.05.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148113002541
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2013.05.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Vaclav Smil, 2010. "Energy Myths and Realities: Bringing Science to the Energy Policy Debate," Books, American Enterprise Institute, number 50339, September.
    2. Elliston, Ben & Diesendorf, Mark & MacGill, Iain, 2012. "Simulations of scenarios with 100% renewable electricity in the Australian National Electricity Market," Energy Policy, Elsevier, vol. 45(C), pages 606-613.
    3. Moreno, Blanca & López, Ana J. & García-Álvarez, María Teresa, 2012. "The electricity prices in the European Union. The role of renewable energies and regulatory electric market reforms," Energy, Elsevier, vol. 48(1), pages 307-313.
    4. Elliston, Ben & MacGill, Iain & Diesendorf, Mark, 2013. "Least cost 100% renewable electricity scenarios in the Australian National Electricity Market," Energy Policy, Elsevier, vol. 59(C), pages 270-282.
    5. Lynette Molyneaux & Craig Froome & Liam Wagner & John Foster, 2012. "Australian Power: Can renewable technologies change the dominant industry view?," Energy Economics and Management Group Working Papers 13-2012, School of Economics, University of Queensland, Australia.
    6. William E., Lilley & Luke J., Reedman & Liam D., Wagner & Colin F., Alie & Anthony R., Szatow, 2012. "An economic evaluation of the potential for distributed energy in Australia," Energy Policy, Elsevier, vol. 51(C), pages 277-289.
    7. Sensfuß, Frank & Ragwitz, Mario & Genoese, Massimo, 2008. "The merit-order effect: A detailed analysis of the price effect of renewable electricity generation on spot market prices in Germany," Energy Policy, Elsevier, vol. 36(8), pages 3076-3084, August.
    8. Molyneaux, Lynette & Wagner, Liam & Froome, Craig & Foster, John, 2012. "Resilience and electricity systems: A comparative analysis," Energy Policy, Elsevier, vol. 47(C), pages 188-201.
    9. World Bank, 2011. "World Development Indicators 2011," World Bank Publications - Books, The World Bank Group, number 2315.
    10. Krozer, Yoram, 2013. "Cost and benefit of renewable energy in the European Union," Renewable Energy, Elsevier, vol. 50(C), pages 68-73.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gui, Emi Minghui & Diesendorf, Mark & MacGill, Iain, 2017. "Distributed energy infrastructure paradigm: Community microgrids in a new institutional economics context," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 1355-1365.
    2. Nicholas Gohdes & Paul Simshauser & Clevo Wilson, 2023. "Renewable investments in hybridised energy markets: optimising the CfD-merchant revenue mix," Working Papers EPRG2306, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    3. Guidolin, Mariangela & Alpcan, Tansu, 2019. "Transition to sustainable energy generation in Australia: Interplay between coal, gas and renewables," Renewable Energy, Elsevier, vol. 139(C), pages 359-367.
    4. Andreas Chai, 2017. "Interdisciplinary and evolutionary perspectives on managing the transition to a sustainable economy," Journal of Bioeconomics, Springer, vol. 19(1), pages 1-5, April.
    5. Paul Simshauser & Joel Gilmore, 2020. "Is the NEM broken? Policy discontinuity and the 2017-2020 investment megacycle," Working Papers EPRG2014, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    6. Simshauser, Paul, 2019. "Missing money, missing policy and Resource Adequacy in Australia's National Electricity Market," Utilities Policy, Elsevier, vol. 60(C), pages 1-1.
    7. Gohdes, Nicholas & Simshauser, Paul & Wilson, Clevo, 2022. "Renewable entry costs, project finance and the role of revenue quality in Australia's National Electricity Market," Energy Economics, Elsevier, vol. 114(C).
    8. Wagner, Liam & Molyneaux, Lynette & Foster, John, 2014. "The magnitude of the impact of a shift from coal to gas under a Carbon Price," Energy Policy, Elsevier, vol. 66(C), pages 280-291.
    9. Simshauser, Paul & Gilmore, Joel, 2022. "Climate change policy discontinuity & Australia's 2016-2021 renewable investment supercycle," Energy Policy, Elsevier, vol. 160(C).
    10. Burke, Kerry B., 2014. "The reliability of distributed solar in critical peak demand: A capital value assessment," Renewable Energy, Elsevier, vol. 68(C), pages 103-110.
    11. Gohdes, Nicholas & Simshauser, Paul & Wilson, Clevo, 2023. "Renewable investments, hybridised markets and the energy crisis: Optimising the CfD-merchant revenue mix," Energy Economics, Elsevier, vol. 125(C).
    12. John Foster & Liam Wagner, 2014. "International experience with transformations in electricity markets: A Short Literature Review," Energy Economics and Management Group Working Papers 2-2014, School of Economics, University of Queensland, Australia.
    13. Gohdes, N. & Simshauser, P., 2022. "Renewable entry costs, project finance and the role of revenue quality in Australia’s National Electricity Market," Cambridge Working Papers in Economics 2206, Faculty of Economics, University of Cambridge.
    14. Simshauser, Paul, 2018. "Garbage can theory and Australia's National Electricity Market: Decarbonisation in a hostile policy environment," Energy Policy, Elsevier, vol. 120(C), pages 697-713.
    15. Simshauser, P., 2021. "Renewable Energy Zones in Australia’s National Electricity Market," Cambridge Working Papers in Economics 2119, Faculty of Economics, University of Cambridge.
    16. Tracey Dodd & Tim Nelson, 2019. "Trials and tribulations of market responses to climate change: Insight through the transformation of the Australian electricity market," Australian Journal of Management, Australian School of Business, vol. 44(4), pages 614-631, November.
    17. Riesz, Jenny & Vithayasrichareon, Peerapat & MacGill, Iain, 2015. "Assessing “gas transition” pathways to low carbon electricity – An Australian case study," Applied Energy, Elsevier, vol. 154(C), pages 794-804.
    18. Byrnes, Liam & Brown, Colin, 2015. "Australia’s renewable energy policy: the case for intervention," MPRA Paper 64977, University Library of Munich, Germany.
    19. Vithayasrichareon, Peerapat & Riesz, Jenny & MacGill, Iain F., 2015. "Using renewables to hedge against future electricity industry uncertainties—An Australian case study," Energy Policy, Elsevier, vol. 76(C), pages 43-56.
    20. Foster, John & Wagner, Liam & Liebman, Ariel, 2015. "Modelling the Electricity and Natural Gas Sectors for the Future Grid: Developing Co-Optimisation Platforms for Market Redesign," MPRA Paper 70114, University Library of Munich, Germany.
    21. Foster, John & Wagner, Liam & Liebman, Ariel, 2017. "Economic and investment models for future grids: Final Report Project 3," MPRA Paper 78866, University Library of Munich, Germany.
    22. Elliston, Ben & MacGill, Iain & Diesendorf, Mark, 2014. "Comparing least cost scenarios for 100% renewable electricity with low emission fossil fuel scenarios in the Australian National Electricity Market," Renewable Energy, Elsevier, vol. 66(C), pages 196-204.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lynette Molyneaux & Craig Froome & Liam Wagner & John Foster, 2012. "Australian Power: Can renewable technologies change the dominant industry view?," Energy Economics and Management Group Working Papers 13-2012, School of Economics, University of Queensland, Australia.
    2. Hasan, Kazi Nazmul & Saha, Tapan Kumar & Eghbal, Mehdi, 2014. "Investigating the priority of market participants for low emission generation entry into the Australian grid," Energy, Elsevier, vol. 71(C), pages 445-455.
    3. Diesendorf, Mark & Elliston, Ben, 2018. "The feasibility of 100% renewable electricity systems: A response to critics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 318-330.
    4. Foster, John & Wagner, Liam & Liebman, Ariel, 2017. "Economic and investment models for future grids: Final Report Project 3," MPRA Paper 78866, University Library of Munich, Germany.
    5. William Paul Bell & John Foster, 2017. "Using solar PV feed-in tariff policy history to inform a sustainable flexible pricing regime to enhance the diffusion of energy storage and electric vehicles," Journal of Bioeconomics, Springer, vol. 19(1), pages 127-145, April.
    6. Figueiredo, Nuno Carvalho & Silva, Patrícia Pereira da & Cerqueira, Pedro A., 2016. "It is windy in Denmark: Does market integration suffer?," Energy, Elsevier, vol. 115(P2), pages 1385-1399.
    7. Elliston, Ben & Riesz, Jenny & MacGill, Iain, 2016. "What cost for more renewables? The incremental cost of renewable generation – An Australian National Electricity Market case study," Renewable Energy, Elsevier, vol. 95(C), pages 127-139.
    8. Wu, Yunyang & Reedman, Luke J. & Barrett, Mark A. & Spataru, Catalina, 2018. "Comparison of CST with different hours of storage in the Australian National Electricity Market," Renewable Energy, Elsevier, vol. 122(C), pages 487-496.
    9. Keck, Felix & Jütte, Silke & Lenzen, Manfred & Li, Mengyu, 2022. "Assessment of two optimisation methods for renewable energy capacity expansion planning," Applied Energy, Elsevier, vol. 306(PA).
    10. Talent, Orlando & Du, Haiping, 2018. "Optimal sizing and energy scheduling of photovoltaic-battery systems under different tariff structures," Renewable Energy, Elsevier, vol. 129(PA), pages 513-526.
    11. Juan Ignacio Pe~na & Rosa Rodriguez, 2022. "Are EU Climate and Energy Package 20-20-20 targets achievable and compatible? Evidence from the impact of renewables on electricity prices," Papers 2202.01720, arXiv.org.
    12. Clò, Stefano & D'Adamo, Gaetano, 2015. "The dark side of the sun: How solar power production affects the market value of solar and gas sources," Energy Economics, Elsevier, vol. 49(C), pages 523-530.
    13. Milstein, Irena & Tishler, Asher & Woo, Chi-Keung, 2022. "Wholesale electricity market economics of solar generation in Israel," Utilities Policy, Elsevier, vol. 79(C).
    14. Wagner, Liam & Molyneaux, Lynette & Foster, John, 2014. "The magnitude of the impact of a shift from coal to gas under a Carbon Price," Energy Policy, Elsevier, vol. 66(C), pages 280-291.
    15. Azofra, D. & Saenz-Díez, J.C. & Martínez, E. & Jiménez, E. & Blanco, J., 2016. "Ex-post economic analysis of photovoltaic power in the Spanish grid: Alternative scenarios," Renewable Energy, Elsevier, vol. 95(C), pages 98-108.
    16. Luňáčková, Petra & Průša, Jan & Janda, Karel, 2017. "The merit order effect of Czech photovoltaic plants," Energy Policy, Elsevier, vol. 106(C), pages 138-147.
    17. Ted Trainer, 2022. "Can Australia Run on Renewable Energy: Unsettled Issues and Implications," Biophysical Economics and Resource Quality, Springer, vol. 7(4), pages 1-17, December.
    18. Rey-Costa, Elona & Elliston, Ben & Green, Donna & Abramowitz, Gab, 2023. "Firming 100% renewable power: Costs and opportunities in Australia's National Electricity Market," Renewable Energy, Elsevier, vol. 219(P1).
    19. Weitemeyer, Stefan & Kleinhans, David & Vogt, Thomas & Agert, Carsten, 2015. "Integration of Renewable Energy Sources in future power systems: The role of storage," Renewable Energy, Elsevier, vol. 75(C), pages 14-20.
    20. Keck, Felix & Lenzen, Manfred & Vassallo, Anthony & Li, Mengyu, 2019. "The impact of battery energy storage for renewable energy power grids in Australia," Energy, Elsevier, vol. 173(C), pages 647-657.

    More about this item

    Keywords

    Resilience; Electricity; Renewable energy; Distributed generation;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:60:y:2013:i:c:p:215-221. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.