- Renewable energy may be the key to solving the out-of-control electricity prices Australians’ face
- Our transition from fossil fuels to renewable energy must be measured and research informed
- The marketisation of hydrogen energy holds strong promise for Australia’s move away from fossil fuels
Australia is facing a period that can be best described as a cost-of-living crisis, with figures from the Australian Bureau of Statistics (ABS) reporting a 9.6% increase in annual living costs, the highest growth the nation has experienced in decades. Research conducted by the Consumer Reference Group (CRG) has revealed that more than a quarter of Australians struggle to pay their energy bills.
With the nation’s electricity prices and the annual cost of living spiraling out of control, researchers believe alternative energy may hold some answers to the question of how to solve Australia’s spiraling electricity costs. Several Churchill Trust fellows have returned from their overseas research on alternative energy sources across the globe, armed with the invaluable knowledge acquired throughout their investigation.
A measured approach to the energy transition
Although Australia is a world leader in transitioning from fossil fuels to clean energy, Dr Julius Susanto has called for a more calm and measured approach to our clean energy transition.
Dr Susanto’s report, titled Navigating the energy mid transition argues that Australia’s largest electricity grids are caught in an “awkward stage when both fossil-based thermal generation and renewable energy generation co-exist in large enough volumes to disrupt each other’s operations and economics”.
Therefore, a hasty approach to the energy transition ignoring the risks involved in switching our energy generation systems from fossil fuel-dominant technologies to technologies powered by alternative energies can result in catastrophic outcomes.
A disorderly change may cause harm to the economy and adversely affect the reliability of the electricity system, potentially exacerbating the cost-of-living crisis everyday working Australians currently face.
Considering these issues, Dr Susanto recommends that the government work with industry to establish a framework for appraising the compromises between technical risk, the economy, and the transition rate to guide decision-making regarding the energy transition. The researcher also urged more access to the network data to allow more experts to study the nation’s power systems independently.
Australia’s future in hydrogen fuel
According to International Monetary Fund (IMF), there is a renewed interest in hydrogen energy, facilitated by post-COVID-19 recovery and efforts to decouple from the reliance on Russia’s oil since the invasion of Ukraine.
The IMF estimates that at least half a billion dollars is invested in hydrogen fuel yearly. The hydrogen industry is projected to become a multibillion-dollar global industry in decades.
Dr Steven Percy, who travelled to leading hydrogen research institutions in the United States and South Korea, believes Australia has the infrastructure and resources to become a dominant force in the future global hydrogen industry.
Noting the United States’ pledge to invest US$9.5 billion in the Department of Energy’s (DOE) Clean Hydrogen Strategy Roadmap, and the South Korean government’s estimates that it will rely on imported hydrogen to meet 66% of its hydrogen demand in 2030 as part of its commitment to reduce emissions— the researcher believes that Australia’s commitment to hydrogen energy will position the nation to become a major supplier of hydrogen energy to South Korea, while simultaneously benefiting from technological achievement’s arising from the United States’ investment in the industry.
In other words, the marketisation of hydrogen fuel in Australia may be crucial in decarbonising the Australian economy.
