Low Carbon Electricity
The CEFC continues to play an important role in financing large-scale renewable energy projects to build lower carbon sources of energy generation to replace Australia’s existing carbon-intensive electricity generation.
Despite strong growth in renewables, Australia still has one of the most emissions-intensive electricity systems among advanced economies. Australia’s electricity system produces 0.735 tCO2-e per MWh, 75 per cent more than the 0.421 tCO2-e per MWh on average produced in OECD member countries4. Coal, the most carbon-intensive fossil fuel, remains the dominant energy source for Australia’s ageing electricity generation fleet.
Australia’s electricity system continues to see significant new investment, with clean energy solutions entering the market at increasing scale and price competitiveness. CEFC investments in large-scale solar and wind projects, as well as emerging bioenergy opportunities, are contributing to this technological advancement and, in turn, improved cost profile.
Through a planned and coordinated approach, Australia’s energy mix can incorporate higher levels of clean energy alongside strengthened transmission, better demand management systems and increased storage capacity, contributing to improved systems reliability, energy affordability and environmental sustainability.
4. International Energy Agency (2016) CO2-e from fuel combustion.