Human settlements: Energy use
- Author
- Reviewer
- Key findings
- Indicators and summary of status
- Importance
- Pressure and condition
- Response
- References
Author
Roger Church, Department of Mines and Energy
Reviewer
Nick Lindsay, Department of the Premier and Cabinet
Key findings
- Greenhouse gas emission reduction is the most important environmental issue facing the energy industry.
- The challenge in Queensland is to maintain a reliable and secure energy supply in response to strong economic and population growth while simultaneously reducing greenhouse gas emissions associated with this energy use.
- In this context, the government response is to increase the proportion of less greenhouse gas-intensive fuel sources such as gas through the Queensland Gas Scheme, establish a Renewable and Low Emissions Energy Target, and introduce a range of energy-efficiency measures, including a switch from electricity to gas by households and business.
- The Queensland Government is also establishing a pathway for low emissions technology. When low emissions technology is deployed, especially clean coal technology, the environmental concerns associated with energy use will change.
Indicators and summary of status
Indicator |
Status of indicator |
Total energy consumption |
Continuing to increase, and at a greater rate since 2001. Queensland growth rates are higher than those of Australia as a whole. [ |
Proportion of energy consumed by fuel source |
The proportion of fossil fuels consumed in Queensland has increased since 2001. The proportion of black coal consumption has grown while the proportion of natural gas consumed is stable.* The proportion of solar power, wind and hydro-electricity remains negligible. [ |
Energy consumption |
Continuing to increase, and at a greater rate since 2001. The level of energy consumption is higher in Queensland than in Australia, and is also growing at a faster rate. [ |
Energy consumption per unit of gross state product |
Levels have been decreasing for some time. The level is higher in Queensland than in Australia, but both have fallen by more than 10%. [ |
Proportion of energy consumed by sector |
T he proportion of energy consumed in the electricity generation sector in Queensland has increased since 2001. The rate of growth in energy consumption in the manufacturing and transport sectors has not been as strong. [ |
]
]*The data used in this report are based on 2004-05 figures and further changes have occurred, such as greater use of gas in electricity generation.
Importance
The production, supply and consumption of energy release waste products that can be harmful to the environment. Of particular concern is the release of greenhouse gases to the atmosphere from combustion of fossil fuel. The production of energy can also consume natural resources.
The growth in energy consumption in Queensland since 2001 is being driven by an increasing population, a growing economy, and an expansion of energy-intensive industry.
The risk of climate change from increased greenhouse gas emissions is a global concern and Queensland will be affected as climate change impacts occur.
Pressure and condition
Net energy consumption is used as an indicator of energy use in Queensland. This approach avoids double counting in situations where energy is produced in one sector then used later in other sectors. A good example is electricity generation. The net energy consumed in electricity generation is calculated by subtracting the electricity that is used elsewhere in the economy from the total amount of energy consumed to produce the electricity.
Pressure: Population growth
Queensland 's population growth rate for the five years to June 2005 was the highest of all the states and territories at 2.2% a year (ABS 2006). Australia's population grew by only 1.2% a year over the same period.
While each additional person in Queensland increases the total demand for energy, energy consumption per capita in Queensland also grew over the five years to June 2005 (Table 9.10). Queensland's per capita energy consumption is now 16% higher than Australia's. Some of the increase in per capita consumption is likely to have come from higher personal energy use, and some from industrial growth in the strong local economy. More people are being employed in Queensland, the state's unemployment rate being at a 30-year low during 2004-05 (Queensland Treasury 2005), and this is likely to be contributing to energy use per capita.
Table 9.10 Energy consumption (gigajoules*/capita), Queensland and Australia, 1996-97 to 2004-05
1996-97 (GJ/capita) |
2000-01 (GJ/capita) |
2004-05 (GJ/capita) |
Increase since 2000-01 (%) |
|
Queensland |
271.4 |
285.5 |
318.6 |
11.6 |
Australia |
250.3 |
261.2 |
273.4 |
4.7 |
*1 gigajoule (GJ) = 10 9 joules (J)
Source: ABARE, ABS
Table 9.11 Energy intensity of the Queensland and Australian economies, GSP and GDP, 1996-97 to 2004-05, using 2005 prices
1996-97 (GJ/$ million) |
2000-01 (GJ/$ million) |
2004-05 (GJ/$ million ) |
Decrease since 2000-01 (%) |
|
Queensland |
10 983.9 |
9 771.3 |
8 644.0 |
11.5 |
Australia |
8 898.8 |
7 803.0 |
6 591.6 |
15.5 |
Source: ABS, ABARE
Table 9.12 Energy consumption in Queensland and Australia by industry sector, 2000-01 and 2004-05
Sector |
Queensland |
Australia |
||
Percentage of total 2000-01 |
Percentage of total 2004-05 |
Percentage of total 2000-01 |
Percentage of total 2004-05 |
|
Agriculture |
2.3 |
1.7 |
1.4 |
1.8 |
Mining |
3.9 |
5.8 |
5.5 |
6.2 |
Manufacturing |
26.4 |
23.4 |
23.4 |
22.6 |
Construction |
1.6 |
0.8 |
1.0 |
0.5 |
Transport |
26.0 |
23.8 |
25.1 |
24.3 |
Commercial |
3.7 |
3.7 |
4.4 |
4.5 |
Residential |
4.5 |
4.5 |
7.9 |
7.8 |
Electricity generation |
29.6 |
34.3* |
29.0 |
30.8 |
Other |
2.0 |
2.0 |
2.3 |
1.5 |
*While electricity generated is consumed in Queensland, a small proportion is also exported to New South Wales.
Source: ABARE 2006
Table 9.13 Total energy consumption (petajoules*) in Queensland and Australia, 1996-97 to 2004-05
1996-97 (PJ) |
2000-01 (PJ) |
2004-05 (PJ) |
Increase since 2000-01 (%) |
|
Queensland |
914.0 |
1025.7 |
1250.8 |
21.9 |
Australia |
4611.0 |
5034.1 |
5525.4 |
9.8 |
*1 petajoule (PJ) = 10 15 joules (J)
Source: ABARE
Table 9.14 Proportion of energy consumption in Queensland by fuel source, 2000-01 and 2004-05
Fuel source |
Percentage in 2000-01 |
Percentage in 2004-05 |
Black coal |
46.4 |
49.5 |
Brown coal |
0.0 |
0.0 |
Petroleum products |
35.0 |
33.3 |
Gas |
8.6 |
8.8 |
Biomass |
9.7 |
8.2 |
Hydro |
0.3 |
0.2 |
Solar |
0.0 |
0.0 |
Source: ABARE
Pressure: Economic growth
In 2004-05, Queensland recorded its ninth consecutive year of faster economic growth than the rest of Australia (Qld Treasury 2005). Economic growth in Queensland in 2004-05 was actually double that of the rest of Australia (Qld Treasury 2005).
In Queensland, energy consumption is supporting economic growth. However, for both Australia and Queensland, each unit of economic growth is requiring less energy consumption, although Queensland is a more energy-intensive economy (Table 9.11). For the Australian economy, ABARE attributes this decline in 'energy intensity' to growth in less energy-intensive industries such as the services sector, and to greater energy efficiency from both technological improvements and switching to less energy-intensive fuel sources (ABARE 2006). The same is likely to be true for Queensland.
Pressure: Energy consumption by sector
In line with total energy consumption, energy consumption in each sector in Queensland has increased since 2001. The rate of growth has varied so that the proportion of energy consumed in most sectors has changed (Table 9.12). The changes in proportion have been driven by a very strong increase in energy consumed in electricity generation, and to a lesser extent in the mining sector. Stronger economic and population growth in Queensland has led to a greater increase in demand for electricity than for Australia as a whole. A mining boom has led to increased energy demand in the mining sector in northern Australia, including Queensland (ABARE 2006).
Queensland exports electricity to southern states via two interconnectors between Queensland and New South Wales (NSW). The main Queensland-New South Wales Interconnector (QNI) allows Queensland to export up to 1078 megawatts (MW) of electricity to meet NSW peak electricity demands. The Terranora Interconnector, a privately owned 180 MW transmission line, generally flows south to maintain reliability of supply in the Tweed Shire and northern NSW. In 2005, Queensland exported electricity south along the interconnector almost 97% of the time and has met up to 9% of NSW average peak electricity demand.
The electricity generation sector is also energy intensive and contributes to higher per capita energy consumption (Table 9.12). For Queensland, the increase in energy consumption for electricity generation is reflected in an increase in black coal consumption (Table 9.14).
Condition: Total energy consumption
The recent trend in energy consumption in Queensland is strongly upwards (Table 9.13). Queensland's proportion of total Australian energy consumption has also increased, from 19.8% in 1996-97 to 22.6% in 2004-05. Table 9.13 includes all forms of energy - electricity production, transport, industrial processes and agriculture.
Condition: Energy consumption by fuel source
Queensland uses black coal as a fuel source for almost 50% of its energy requirements (Table 9.14). In comparison, Australia as a whole uses black and brown coal combined for about 41% of its energy requirements. Apart from black coal, the only other fuel source that has increased its share since 2000-01 is gas.
Renewable and Low Emission Energy Target
The Queensland Government announced the Renewable and Low Emission Energy Target (RLEET), in ClimateSmart 2050-Queensland Climate Change Strategy: A low carbon Future (QG 2007). The RLEET aims to increase the proportion of electricity generated from renewable sources in Queensland to 6% by 2015 and 10% by 2020.
Table 9.14, which gives the energy consumption by fuel source, shows that more than 8% of energy consumed in Queensland is obtained from renewable sources, predominantly biomass. The energy data used in Table 9.14 are sourced from the Australian Bureau of Agricultural and Resource Economics (ABARE) and provide a measure that can be compared with energy consumption in other states and nationally. The data are expressed in terms of primary energy consumption, and are not comparable to the data underpinning the RLEET.
Renewable energy sources have a number of uses, including electricity generation, provision of process heat for industry, and water and space heating. The RLEET will secure deployment of Queensland based renewable energy projects. Currently, renewable energy sources provide around 3% of all electricity generated in Queensland.
Response
A coordinated national and international climate change response is required if action to reduce greenhouse emissions is to be effective. The government will look for opportunities to ensure that Queensland is on a pathway to greater emissions reduction.
ClimateSmart 2050 is the Queensland Government's contribution to the global effort in tackling climate change. It outlines a long-term strategy to secure a clean energy future for the state. Long term investments have been made to secure the development and deployment of clean coal technologies. In the interim, gas, which has an emissions profile half that of coal, will be used to meet our medium-term energy needs.
Two types of response are consistent with Queensland's current socioeconomic situation:
- producing energy from less greenhouse gas-intensive fuel sources, and
- consuming less energy for the same socioeconomic outcomes.
Producing energy from less greenhouse gas -intensive sources
The main government responses identified in the previous reporting period were:
- the Queensland Gas Scheme (under the scheme, electricity retailers and other liable parties will be required to source at least 18% of their electricity from gas-fired electricity generation by 2020);
- building a Townsville gas-fired power station;
- purchase of renewable energy by the government;
- an increase and an extension of the Solar Hot Water Rebate; and
- an extension of the Queensland Sustainable Energy Innovation Fund.
The Queensland Gas Scheme commenced on 1 July 2005. The planned introduction of the scheme contributed to the construction of new gas-fired generation between 2001 and 2005 and increased the proportion of gas as a fuel source (Table 9.14). The proportion of gas as a fuel source will continue to increase.
The Townsville gas-fired power station was completed before 1 July 2005. An existing station was converted from a 160 MW liquid-fuelled power station operating only at peak times to a 220 MW gas-fired station operating far more frequently. It was officially opened on 7 February 2005.
In terms of increasing the proportion of gas as a fuel source, the scheme can be considered effective. Now that the scheme is fully operational, the proportion of gas as a fuel source is expected to increase further in the years ahead. New gas-fired stations have been opened since June 2005 and others are proposed. The scheme has also helped the development of the coal seam gas industry in Queensland. The availability of coal seam gas in the south-east corner will support the expansion of gas as a fuel source in other sectors of the economy.
The Queensland Government has continued to purchase electricity produced from renewable sources since 2001, and is purchasing $1.4 million worth each year. The effectiveness of this purchase is difficult to quantify. Purchases such as this support the existing market for renewable energy, rather than leading directly to the construction of new renewable power stations.
The Solar Hot Water Rebate scheme in Queensland operated between May 2000 and June 2005. Around 40 000 rebates were paid and were effective in increasing the number of solar hot water units used in Queensland and establishing solar water heating as a mainstream choice for consumers.
Funding for the Queensland Sustainable Energy Innovation Fund has been further extended to 2008. The tenth round of funding closed in November 2006, and projects normally receive a maximum of $200 000 each. Each project must have an innovative component, and therefore have strong experimental or demonstration elements. The effectiveness of the fund will depend on the success of each long-term project.
State of the Environment Queensland 2003 reported predictions that the use of renewable energy in Queensland would grow faster than total energy use. This has not eventuated. Growth rates for hydro-electricity, electricity from biomass, solar energy and wind power are relatively low in Queensland (Table 9.14).
The Queensland Government has introduced a new method to produce energy from less greenhouse gas-intensive sources since 2003. The focus is on developing and demonstrating technology to reduce greenhouse gas emissions from electricity generation, especially coal-fired generation. The Centre for Low Emissions Technology was established in 2003 with $9 million from the Queensland Government; the total contribution from all the partners was $26 million. In early 2006 the government announced a Future Growth Fund and set down $300 million for new technologies, including clean coal technology, to reduce climate change effects.
Three large-scale low emission technology projects were announced for Queensland in late 2006:
- CS Energy, a government-owned corporation, has a $188 million project to retrofit an existing power station to burn coal in an oxygen-rich environment. The exhaust gases, which will contain a high concentration of carbon dioxide, will be captured and buried underground. The project is scheduled to be completed by 2015.
- The $445 million Fairview Power Project will extract methane gas from underground coal seams, burn the gas in a 100 MW power station, capture the carbon dioxide emissions, then return the carbon dioxide to the underground coal seams to replace the methane. The project is also scheduled to be completed by 2015.
- The Queensland Government will contribute $5 million to the $30 million Townsville Solar Cities project.
As part of the project, solar panels will be installed on 500 homes and businesses. The project, starting in 2007, will run for seven years.
In addition, the feasibility of government-owned corporation Stanwell's Zerogen project in Central Queensland is being evaluated. Zerogen has been declared a project of state significance and aims to develop a demonstration Integrated Gasification Combined Cycle power plant with carbon capture and storage. The development and deployment of low emissions technology will take place over the next ten years or so, and the effectiveness of this response cannot be judged yet.
Consuming less energy for the same outcomes
The government responses mentioned in the previous reporting period included a Government Energy Management Strategy, establishment of an Energy Efficiency Program, and participation in an intergovernmental Energy Efficiency Working Group.
The Queensland Government has extended the second of those responses since 2003. As Chair of the Energy Efficiency Working Group, Queensland has led the introduction of the National Framework for Energy Efficiency (NFEE). Stage One of this Framework includes a range of policy measures that are designed to overcome various barriers to achieving greater energy efficiency in the residential, commercial and industrial sectors.
NFEE Stage One has been effective in many areas. Recent estimates suggest that some of the programs that began between July 2004 and September 2006, including improving the minimum energy performance standards for a range of household appliances, will lead to savings in 2015 of approximately 42 petajoules (PJ) of energy (Ministerial Council of Energy 2006). However, NFEE is a long-term national effort that will hopefully see energy efficiency improvements in areas such as design standards for commercial buildings, more opportunities for energy efficiency training for tradespeople, and policies to motivate consumers to reduce energy use.
The Queensland Government also introduced a Sustainable Housing Code on 1 March 2006. Under the Code new homes must have a greenhouse gas-efficient hot water system and also use energy-efficient lighting. Water heating is one of the largest components of electricity bills for houses that have electric hot water systems.
The Queensland Government has recently announced a $14.25 million 'Energy Choices' initiative which builds on its commitment to the National Framework for Energy Efficiency. The Energy Choices package of initiatives will target domestic gas installation, expand the state's successful EnergyWise awareness program and improve management of the government's energy use through the Government Energy Management Strategy.
The effectiveness or otherwise of these energy-efficiency measures should be judged over the next several years. Most of these programs are long-term initiatives. The Government Energy Management Strategy has been effective to date, however, since it is expected to meet its target of reducing the government's electricity bill by $22 million by 2008.
References
ABARE 2006, Energy Update June 2006, Australian Bureau of Agricultural and Resource Economics, Canberra, viewed 21 June 2006, www.abareconomics.com/interactive/energy.
ABS 2006, Regional Population Growth 2004-05, Publication 3218.0, Australian Bureau of Statistics, Canberra, viewed 21 June 2006, www.abs.gov.au.
Ministerial Council of Energy 2006, Twelfth Meeting Communique 27 October 2006, Ministerial Council of Energy, Sydney, viewed 21 June 2006, www.mce.gov.au.
QG 2007, ClimateSmart 2050-Queensland Climate Change Strategy 2007: A Low Carbon Future (PDF)*, Queensland Government, Brisbane, viewed 29 June 2007.
Qld Treasury 2005, Annual Economic Report 2004-05: The Queensland Economy, Queensland Treasury, Brisbane, viewed 21 June 2006.
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Last updated 13 February 2008