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Renewable energy in Australia: What you need to know
Renewable energy has become a major focus in recent years, with nations worldwide shifting towards cleaner and more sustainable energy sources. Australia is no exception, as there are growing pressures to expand its renewable energy efforts and keep pace with global trends.
But what does renewable energy mean, and how is it being adopted across Australia?
In this article, we’ll explore the basics of renewable energy, how it works in Australia, and what it could mean for you as a consumer. From solar power to wind farms, we’ll break down the current landscape and future possibilities of renewable energy in Australia.
What is renewable energy?
Renewable energy comes from natural sources that never run out or can be quickly replenished. Unlike fossil fuels such as coal or gas, renewable energy sources—like sunlight, wind, and water—are naturally abundant and constantly available.
These sources are used to generate electricity without producing harmful emissions, making them cleaner and more sustainable for the environment. In simple terms, renewable energy is energy that can be used repeatedly without depleting the planet’s resources.
How are non-renewable resources different?
Non-renewable energy sources come from materials that take millions of years to form and are limited in supply. In Australia, the main non-renewable sources are fossil fuels, including coal, natural gas, and oil. These materials are extracted from the earth and burned to produce electricity or power industries. While they’ve been the backbone of energy production for decades, they come with several downsides.
Firstly, non-renewable sources are finite, meaning once they’re used up, they can’t be replaced in a short amount of time. This creates a long-term problem as supplies will eventually deplete, leading to higher costs and potential energy shortages. Secondly, the process of burning fossil fuels releases large amounts of carbon dioxide and other harmful greenhouse gases into the atmosphere, contributing to climate change and environmental damage.
In contrast, renewable energy sources like solar, wind, and hydro are virtually limitless and don’t pollute the air or contribute to global warming. Renewable energy can be generated over and over again without depleting the Earth’s resources, making it a cleaner and more sustainable option for the future.
The major difference between renewable and non-renewable energy lies in their availability and environmental impact. While non-renewable sources provide reliable energy now, they come at a cost to both the planet and future generations, whereas renewable energy offers a cleaner, long-lasting solution.
Types of renewable energy
| Renewable energy type | About this energy | Common uses |
| Solar | Harnessed from the sun with the help of solar panels and farms | Electricity generation in residential and commercial settings |
| Wind | Produced by wind turbines that convert wind movement to energy | Used in large wind farms to generate grid power |
| Hydropower | Generated by the flow of water, typically through dams and rivers | Used in large-scale projects, such as the Snowy Mountain Scheme, to generate power |
| Biomass | Produced from organic materials like agricultural waste, wood and food | Used for electricity and heating generation and the production of biofuels |
| Geothermal | Energy harnessed from the heat stored beneath the surface of the Earth | Used in some regions for electricity and heat generation |
| Wave and tidal | Captured energy from waves or tidal movements | In development for future use in small-scale projects |
These renewable energy sources contribute to Australia’s growing efforts to reduce reliance on fossil fuels and move towards a more sustainable energy future.
The benefits of renewable energy
Renewable energy offers a wide range of benefits for Australia, from environmental advantages to economic opportunities. Here's a detailed look at how renewable energy is beneficial for the country:
Environmental benefits
- Reduced greenhouse gas emissions. Renewable energy sources like solar, wind, and hydropower produce little to no carbon emissions, unlike fossil fuels which release harmful greenhouse gases into the atmosphere. This helps Australia meet its climate goals by reducing its carbon footprint and combating climate change.
- Less air and water pollution. Burning fossil fuels not only emits CO2 but also releases pollutants that degrade air quality and can harm water resources. Renewable energy generation is much cleaner, reducing the risk of smog, acid rain, and water contamination.
- Conservation of natural resources. Renewable energy does not rely on finite resources like coal or gas, meaning Australia can preserve its natural landscapes and ecosystems from the environmental damage caused by mining and drilling activities.
Economic benefits
- Job creation. The renewable energy sector in Australia is rapidly growing, creating thousands of new jobs in areas such as solar panel installation, wind farm maintenance, and battery storage development. This growth helps boost local economies, particularly in regional and rural areas.
- Energy independence. By investing in renewable energy, Australia can reduce its dependence on imported fossil fuels. This enhances national energy security and reduces vulnerability to fluctuations in global fuel prices or geopolitical conflicts that can disrupt fuel supplies.
- Lower energy costs. As renewable technologies like solar and wind become more efficient and widespread, the cost of producing energy from these sources is dropping. For consumers, this could translate into lower electricity bills over time, especially with the increasing availability of rooftop solar and home battery systems.
- Investment opportunities. Australia’s move toward renewable energy is attracting significant domestic and international investments. This helps fund the development of new projects and infrastructure, creating a positive feedback loop of innovation and economic growth.
Social benefits
- Energy access in remote areas. In many remote and rural parts of Australia, renewable energy solutions like solar power can provide reliable access to electricity where it was previously difficult or expensive to connect to the main grid. This enhances the quality of life for residents in isolated communities and supports regional development.
- Health improvements. By reducing air and water pollution, renewable energy contributes to better public health outcomes. Cleaner air leads to fewer respiratory and cardiovascular issues, while cleaner water supports healthier ecosystems and communities.
Technological innovation
- Advancements in energy storage. One challenge of renewable energy is its intermittency (the sun doesn’t always shine, and the wind doesn’t always blow). However, Australia is pioneering advancements in energy storage technologies, such as batteries, to store excess power and ensure a steady energy supply. This innovation places the country at the forefront of global renewable energy research and development.
- Decentralised energy production. Renewable energy promotes decentralised energy systems, where power can be generated and consumed locally. This reduces the strain on the national grid, prevents outages, and allows individuals and communities to take control of their energy needs through systems like rooftop solar and home batteries.
Sustainability for future generations
- Long-term resource availability. Renewable energy ensures a long-term, sustainable energy supply for future generations. Unlike fossil fuels, which are finite and becoming increasingly expensive to extract, renewable resources like wind and solar are virtually limitless.
- Reducing ecological footprint. The shift toward renewable energy helps Australia lessen its overall ecological impact, preserving natural habitats and reducing the environmental degradation associated with mining and fossil fuel extraction.
Global leadership and international reputation
- Meeting climate commitments. By increasing its use of renewable energy, Australia can meet international climate commitments under agreements like the Paris Agreement. This strengthens the country’s global standing as a leader in sustainable development.
- Influencing regional energy markets. Australia's leadership in renewable energy development could also influence energy markets in the Asia-Pacific region, encouraging neighbouring countries to adopt cleaner energy technologies and practices.
The benefits of renewable energy in Australia are multifaceted, offering environmental, economic, and social advantages. As the country continues to shift away from fossil fuels and embrace renewable energy technologies, it stands to gain from a cleaner, more sustainable, and economically prosperous future.
What’s the difference between carbon neutral and renewable energy?
Renewable energy and carbon-neutral options are both aimed at reducing the impact on the environment, but they are different concepts. Here’s a simple explanation of how they differ:
Renewable energy
Renewable energy comes from natural sources that are constantly replenished, such as sunlight, wind, water (hydropower), and biomass (organic materials like plant waste).
The key feature of renewable energy is that it doesn’t run out and doesn’t create harmful emissions when generating power.
| Examples of renewable energy | Solar panels, wind turbines, hydroelectric dams |
| Environmental impact | Since renewable energy doesn’t rely on burning fuels, it produces little to no greenhouse gases or pollution. It’s a clean and sustainable way to generate electricity |
| How it works | Renewable sources are directly used to create energy. For instance, solar panels convert sunlight into electricity, while wind turbines use wind to generate power |
Carbon neutral options
Carbon-neutral options focus on balancing out the carbon dioxide (CO2) emissions created by certain activities, like burning fossil fuels or manufacturing. These activities release CO2, a greenhouse gas that contributes to climate change, into the atmosphere.
To achieve carbon neutrality, companies or individuals try to “offset” or “neutralise” the amount of carbon they emit by supporting activities that reduce or remove CO2 from the air.
| Examples of carbon-neutral actions | Buying carbon offsets, planting trees, or investing in renewable energy projects |
| Environmental impact | Carbon-neutral activities still generate emissions, but the aim is to balance them out by reducing emissions elsewhere or capturing carbon from the air |
| How it works | If a company burns fuel to make a product, it will invest in projects that reduce or capture the same amount of CO2, making the overall impact on the environment “neutral.” For example, a business might buy carbon credits to fund reforestation (planting trees that absorb CO2) |
Key differences
- Source of energy. Renewable energy comes from natural sources like the sun and wind, while carbon-neutral options might still use fossil fuels but balance out their emissions through carbon-offset programs.
- Emissions. Renewable energy doesn’t create harmful emissions during power generation, while carbon-neutral options may still produce CO2 but aim to cancel it out by compensating elsewhere.
- Sustainability. Renewable energy is naturally sustainable, as the sources don’t run out and are available indefinitely. Carbon-neutral options don’t necessarily use sustainable sources, but they focus on reducing the net environmental impact.
In short, renewable energy avoids emissions by using clean, natural sources, while carbon-neutral options manage emissions by balancing out the CO2 released with efforts to reduce or remove it elsewhere.
Renewable energy is typically a cleaner and more straightforward way to cut emissions, while carbon neutrality is more about offsetting the environmental cost of using traditional energy sources.
Is renewable energy the same as GreenPower?
No, GreenPower is not exactly the same as renewable energy, but it is closely related. GreenPower is an Australian government-managed program that allows consumers to buy renewable energy to match their electricity usage. Here’s a breakdown of how it works and how it differs from renewable energy:
What is GreenPower?
GreenPower is a voluntary program where households and businesses can pay extra on their electricity bill to support renewable energy generation. When you sign up for GreenPower, your energy provider buys electricity from accredited renewable sources (like solar, wind, and hydropower) on your behalf.
This supports the renewable energy industry, helping more green energy enter the electricity grid.
How is it different from renewable energy?
- GreenPower is a program. GreenPower is not an energy source itself, but a government-accredited program that ensures your electricity consumption is matched by renewable energy generation. It guarantees that the renewable energy you pay for comes from certified sources.
- Renewable energy is the source. Renewable energy refers to the actual energy generated from renewable sources like wind, solar, and water. Whether or not you participate in GreenPower, renewable energy is produced and fed into the national electricity grid.
While GreenPower supports renewable energy, it’s a program that consumers can join to ensure their electricity usage contributes to renewable energy generation. Renewable energy itself is the clean power generated from sources like wind or solar.
GreenPower helps promote and increase the use of these renewable energy sources by allowing people to choose to pay for greener options.
Is renewable energy the sustainable option?
Yes, renewable energy is widely considered the most sustainable option for generating electricity. Here’s why renewable energy is seen as a sustainable solution:
Unlimited resources
Renewable energy comes from sources that are naturally replenished, like sunlight, wind, and water. Unlike fossil fuels (coal, oil, and natural gas), which are finite and will eventually run out, renewable resources are virtually limitless. If the sun shines and the wind blows, we can continue to generate energy.
Low environmental impact
Renewable energy has a much lower environmental impact compared to non-renewable sources:
- No greenhouse gases. Solar, wind, and hydropower generate electricity without producing harmful carbon dioxide (CO2) emissions, which are a major contributor to climate change.
- Reduced air and water pollution. Unlike coal or gas plants that emit pollutants into the air and water, renewable energy sources are clean, helping to improve public health and reduce ecological damage.
Long-term availability
Renewable energy offers long-term energy security because it relies on sources that are abundant and won’t be depleted over time.
This contrasts with fossil fuels, which are becoming more expensive and difficult to extract as supplies dwindle.
Minimal resource extraction
Extracting fossil fuels (e.g., mining coal, drilling for oil) often leads to significant environmental damage, including habitat destruction, water contamination, and soil erosion.
Renewable energy doesn’t involve such destructive extraction processes, making it more sustainable for the planet.
Energy independence
By adopting renewable energy, countries can reduce their dependence on imported fuels, improving energy security.
This makes renewable energy a more sustainable economic option for the long term, as prices for fossil fuels can fluctuate due to supply and demand issues.
Technological innovation
Renewable energy technologies continue to advance, making them more efficient and cost-effective. As technology improves, the ability to store energy (e.g., with batteries) and manage intermittent sources (like solar or wind) also increases, further enhancing the sustainability of renewable energy systems.
While renewable energy is the most sustainable option, it’s important to note:
- Intermittency. Some renewable sources, like solar and wind, are not always available (the sun doesn’t shine at night, and the wind doesn’t always blow). However, energy storage solutions and a mix of renewable sources can address these challenges.
- Upfront costs. Building renewable energy infrastructure (solar farms, wind turbines) can have high upfront costs, but these are offset by low operational costs over time as the energy is free once the infrastructure is in place.
In terms of long-term sustainability, renewable energy is the most sustainable option available. It provides clean, inexhaustible power with minimal environmental impact, ensuring that future generations can meet their energy needs without depleting the planet’s resources.
Connect with Compare Energy
If you want to switch to renewable energy options, the best next step that you can take is to connect with Compare Energy. We’ve got a team on hand to direct you through your renewable energy options on 1300 706 190 today.
