Coal-fired generation share in Australia’s electricity to fall to 47% in 2024: IEA

This is due to capacity retirements and increase in renewables.

The share of coal-fired generation in the electricity of Australia is expected to decline to 47% by 2024 from 53% in 2021 due to retirement of some of its capacities and the addition of renewable energy.

In the Electricity Market Report, the International Energy Agency (IEA) said most capacity additions in the country last year were led by renewables, with 1.3 gigawatts (GW) of new wind capacity and 4.7 GW of solar power.

On the other hand, 2 GW of coal-fired capacity will be retiring in the next two years, with Lidell Power Station closing its first unit of 500 megawatts (MW) in April 2022, whilst its remaining three units of 1,500MW will close in April 2023.

IEA also noted that there were new battery projects in Australia including the 1.2GW facility at Kurri Kurri, set the become the world’s largest batter, which will be completed next year. It added that the country’s electricity market moved to five-minute settlement in October last year which is seen to favour fast-acting resources like batteries.

Renewable generation share grew 18% in 2021 and is expected to continue increasing due to continued capacity additions. Gas generation, meanwhile fell 16% in 2021 and is expected to decline by around 3% yearly up to 2024.

Australia targets net-zero carbon emission by 2050 and pledged to cut its emissions to 35% below 2005 levels by 2030, the report read.