· Web viewThe AES is developed through the process of balancing energy consumption with...

2012Australian

Energy Update

August 2012Clare Stark, Kate Penney and Alex Feng

© Commonwealth of Australia 2012

This work is copyright, the copyright being owned by the Commonwealth of Australia. The Commonwealth of Australia has, however, decided that, consistent with the need for free and open re-use and adaptation, public sector information should be licensed by agencies under the Creative Commons BY standard as the default position. The material in this publication is available for use according to the Creative Commons BY licensing protocol whereby when a work is copied or redistributed, the Commonwealth of Australia (and any other nominated parties) must be credited and the source linked to by the user. It is recommended that users wishing to make copies from BREE publications contact the Chief Economist, Bureau of Resources and Energy Economics (BREE). This is especially important where a publication contains material in respect of which the copyright is held by a party other than the Commonwealth of Australia as the Creative Commons licence may not be acceptable to those copyright owners.The Australian Government acting through BREE has exercised due care and skill in the preparation and compilation of the information and data set out in this publication. Notwithstanding, BREE, its employees and advisers disclaim all liability, including liability for negligence, for any loss, damage, injury, expense or cost incurred by any person as a result of accessing, using or relying upon any of the information or data set out in this publication to the maximum extent permitted by law.Stark, C., Penney, K. and Feng, A. 2012, 2012 Australian Energy Update, BREE, Canberra, August.Excel tables should be cited as:BREE 2012, 2012 Australian Energy Statistics, BREE, Canberra, July.ISSN 978-1-922106-34-6 (Print)ISSN 978-1-922106-35-3 (Online)From 1 July 2011, responsibility for resources and energy data and research was transferred from ABARES to the Bureau of Resources and Energy Economics (BREE).Postal address:Bureau of Resources and Energy EconomicsGPO Box 1564Canberra ACT 2601 Australia

Phone: +61 2 6276 1000

Email: [email protected]

Web: www.bree.gov.au2012 Australian Energy Update • August 2012 2

Acknowledgements

The authors would like to express their appreciation for the assistance and support provided by colleagues from the Bureau of Resources and Energy Economics, Department of Climate Change and Energy Efficiency, the Australian Bureau of Statistics, and the Bureau of Infrastructure, Transport and Regional Economics. Special thanks to Andrew Schultz, formerly of the Bureau of Resources and Energy Economics, and to Glen Whitehead of the Department of Climate Change and Energy Efficiency who provided helpful advice during the compilation of these statistics.

2012 Australian Energy Update • August 2012 3

ForewordThe Australian energy sector is undergoing a fundamental transformation as it moves towards a clean energy future. To help plan for this future Australia needs accurate, comprehensive and readily-accessible energy data. The Australian Energy Statistics is the authoritative and official source of energy data for Australia and forms the basis of Australia’s international reporting obligations. It is updated annually and consists of detailed historical energy consumption, production and trade statistics compiled from various sources. The data released by BREE at the end of July covers the period 1973–74 to 2010–11 and this update uses this data series.This report summarises the key results from the latest Australian Energy Statistics release. I encourage you to access and use the data that is available at www.bree.gov.au.

Quentin GraftonExecutive Director/Chief EconomistAugust 2012


ContentsAcknowledgements 3Foreword 4Abbreviations and acronyms 6Glossary 7Conversions/Units 81. Summary 92. Sources, methodology and coverage 103. Consumption 124. Production and trade 15Appendix 19

FiguresFigure 1: Australian energy consumption, by fuel type 12Figure 2: Australian energy production, by fuel type 15Figure 3: Australian electricity generation, by fuel type 16Figure 4: Australian energy exports, by fuel type 18Figure A1: Total primary energy supply 19Figure A2: Total net energy consumption 19

TablesTable 1: NGERS reporting thresholds 10Table 2: 2012 Australian Energy Statistics Tables 11Table 3: Australian energy consumption, by fuel type 13Table 4: Australian renewable energy consumption, by fuel type 13Table 5: Australian total final energy consumption, by industry 14Table 6: Australian energy consumption, by state 14Table 7: Australian energy production, by fuel type 16Table 8: Australian electricity generation, by fuel type 17Table 9: Australian energy exports, by fuel type 18


Abbreviations and acronymsABARES Australian Bureau of Agricultural and Resource Economics and SciencesABS Australian Bureau of StatisticsADO Automotive diesel oilAES Australian Energy Statistics ANZSIC Australian and New Zealand Standard Industrial ClassificationAPS Australia Petroleum StatisticsBREE Bureau of Resources and Energy EconomicsCSG Coal seam gasDCCEE Department of Climate Change and Energy EfficiencyFES Fuel and Electricity SurveyGWh Gigawatt hoursIDF Industrial diesel fuelIEA International Energy AgencyFOE Fuel oil equivalentLNG Liquefied natural gas (principally methane)LPG Liquefied petroleum gas (principally propane and butane)NEM National electricity marketNGERSNational Greenhouse and Energy Reporting SchemeNGL Natural gas liquidsORF Other refinery feedstockPJ PetajoulesPV PhotovoltaicRET Department of Resources, Energy and TourismSRES Small-scale Renewable Energy SchemeTFEC Total Final Energy ConsumptionTPES Total Primary Energy Supply


GlossaryBagasse: Fibrous residue of the sugar cane milling process that is used as a fuel (to raise steam) in sugar mills.Biofuels: Liquid fuels produced by chemical conversion processes that result in the production of ethanol and biodiesel. Biogas: Landfill (garbage tips) gas and sewage gas. Also referred to as biomass gas.Black coal: Hard coal with high energy content. In Australia, anthracite, bituminous and sub-bituminous coals are referred to as black coal.Brown coal: Has a low energy and high ash content. It is unsuitable for export and is used to generate electricity in power stations located at or near the mine. Also referred to as Lignite.Coal by-product: By-products such as blast furnace gas (from iron and steel processing), coal tar and benzene/toluene/xylene (BTX) feedstock and coke oven gas (from the coke making process).Coal seam gas: Methane held within coal deposits, bonded to coal under the pressure of water. It may also contain small amounts of carbon dioxide and nitrogen. Also referred to as coal seam methane and coal bed methane. Included in natural gas in the AES tables.Coke: A porous solid composed mainly of carbon and ash which is used in blast furnaces that produce iron. Conversion: The process of transforming one form of energy into another (derived) form before final end use. Energy used in conversion is the energy content of fuels consumed as well as transformed by energy producing industries. Examples are gas and liquefied petroleum gas used in town gas manufacturing, all hydrocarbons used as feedstock in oil refineries, and all fuels (including electricity) used in power stations—therefore, energy used in conversion also includes energy lost in the production, conversion and transport of fuels (such as energy lost in coke production) plus net energy consumed by pumped storage after allowance for the energy produced.Crude oil: Naturally occurring mixture of liquid hydrocarbons under normal temperature and pressure.Condensate: Hydrocarbons recovered from the natural gas stream that are liquid under normal temperature and pressure.Domestic availability: Total energy available for consumption within the economy. This measure can be compared with total primary energy supply (TPES).Liquid fuels: All liquid hydrocarbons, including crude oil, condensate, liquefied petroleum gas and other refined petroleum products, and liquid biofuels.Natural gas: Methane that has been processed to remove impurities to a required standard for consumer use. It may contain small amounts of ethane, propane, carbon dioxide and inert gases such as nitrogen. In Australia, natural gas comes from conventional gas and coal seam gas. Also referred to as sales gas in some sectors of the gas industry.Natural gas liquids: Derived from the natural gas stream in separation and/or liquefaction facilities, excludes methane. Non-renewable resources: Resources, such as fossil fuels (crude oil, gas, coal) and uranium that are depleted by extraction.Petajoule: The joule is the standard unit of energy in general scientific applications. One joule is the equivalent of one watt of power radiated or dissipated for one second. One petajoule, or 278 gigawatt hours, is the heat energy content of about 43 000 tonnes of black coal or 29 million litres of petrol.Petroleum: Generic term for all hydrocarbon oils and gases, including refined petroleum products.Petroleum products: All hydrocarbons used directly as fuel. These include liquefied petroleum gas, refined products used as fuels (aviation gasoline, automotive gasoline, power kerosene, aviation turbine fuel, lighting kerosene, heating oil, automotive diesel oil, industrial diesel fuel, fuel oil, refinery fuel and naphtha) and refined products used in nonfuel applications (solvents, lubricants, bitumen, waxes, petroleum coke for anode production and specialised feedstocks). Included in oil aggregates in the AES tables. Primary production: The forms of energy obtained directly from nature, involving only the extraction or collection of the energy source. They include non-renewable energy sources such as coal, uranium, 2012 Australian Energy Update • August 2012 7

crude oil and condensate, naturally occurring liquefied petroleum gas, ethane and methane, and renewable energy sources such as wood, bagasse, landfill gas, hydroelectricity, wind energy, solar energy and geothermal energy. Also referred to as indigenous production.Renewable resources: Resources that can be replenished at a rate equal or greater than the rate of depletion, such as biomass, hydro, solar, wind, ocean and geothermal.Secondary fuels: The forms of energy that result from transforming primary fuels. They include electricity, petroleum products, liquefied petroleum gas produced in refineries and liquid biofuels produced through the transformation of agricultural or waste feedstocks. Also referred to as derived fuels produced. Solar energy: Generated when energy from the sun is converted into electricity or used to heat air, water and other fluids. Total final energy consumption: The total amount of energy consumed in the final or end-use sectors. It is equal to total primary energy supply less energy consumed or lost in conversion, transmission and distribution.Total net energy consumption: A measure of the total energy used within the economy. At an aggregate level, total net energy consumption is equivalent to total primary energy supply.Total primary energy supply: A measure of the total energy supplied within the economy. It is equal to indigenous production plus imports minus exports, plus stock changes and statistical discrepancies. It includes the supply of both primary and secondary fuels.Uranium: a mildly radioactive element that once mined is processed into uranium oxide (U3O8).

Conversions/UnitsMetric units Standard metric prefixesJ joule k kilo 103 (thousand)L litre M mega 106 (million)t tonne G giga 109 (billion)g gram T tera 1012

Wh watt-hours P peta 1015

b billion (1000 million) E exa 1018

Standard conversions1 barrel = 158.987 L1 mtoe (million tonnes of oil equivalent) = 41.868 PJ1 kWh = 3600 kJ1 MBTU (million British thermal units) = 1055 MJ1 m3 (cubic metre) = 35.515 f3 (cubic feet)1 L LPG (liquefied petroleum gas) = 0.254 m3 natural gasConversion factors are at a temperature of 15°C and pressure of 1 atmosphere.

Indicative energy content conversion factorsBlack coal production 30 GJ/tBrown coal 10.3 GJ/tCrude oil production 37 MJ/LNaturally occurring LPG 26.5 MJ/LLNG exports 54.4 GJ/tNatural gas (gaseous production equivalent) 40 MJ/m3

Biomass 11.9 GJ/t


Hydroelectricity, wind and solar energy 3.6 TJ/GWh


1. SummaryThe 2012 Australian Energy Update outlines some of the major trends observed in the 2012 Australian Energy Statistics, the authoritative and official source of energy data for Australia. The 2012 Australian Energy Statistics includes historical revisions back to 2002–03 that incorporate improved information from the National Greenhouse and Energy Reporting Scheme and the addition of data for 2010–11. Key trends from the 2012 release include: Australia’s total primary energy supply, the equivalent of total energy consumption, increased by

3 per cent from 2009–10 to total 6100 petajoules. In energy content terms, renewable energy (excluding biomass) recorded the strongest annual

consumption growth in 2010–11 at 20 per cent, followed by 7 per cent growth in both natural gas and oil consumption.

Total final energy consumption in Australia grew by 2 per cent to around 3800 petajoules in 2010–11.

Robust final energy consumption growth during 2010–11 was observed in the mining sector. Modest energy growth occurred in the transport, residential, agricultural and manufacturing sectors.

In 2010–11 Australia’s energy production, in energy content terms, declined by 3 per cent to 16 600 petajoules as lower production of coal, crude oil and uranium oxide more than offset increased natural gas and renewable energy production.

Total electricity generation remained relatively unchanged at about 250 000 gigawatt hours in 2010–11. Reduced coal-fired generation was offset by increased generation from natural gas and renewable energy sources (including solar, wind and hydro).

In energy content terms, Australia’s energy exports decreased by 3 per cent to around 13 300 petajoules in 2010–11 as exports of uranium oxide and black coal fell by 8 and 3 per cent, respectively.


2. Sources, methodology and coverageThe Australian Energy Statistics (AES) is the authoritative and official source of energy data for Australia and forms the basis of Australia’s international reporting obligations. The primary source of information for the AES is data compiled under the National Greenhouse and Energy Reporting Scheme (NGERS). NGERS provides a rich data set covering the production and consumption of fuels across the main energy consumers and producers in a number of sectors, spanning from primary production, through transformation, to final use. For large, energy-intensive sectors, including mining and non-ferrous metals, there is almost complete coverage of the production and consumption of energy.Under the National Greenhouse and Energy Reporting Act 2007, businesses that consume and/or produce more than a minimum level of energy are subject to mandatory reporting requirements. These thresholds are designed to include all large energy consuming entities to ensure the majority of Australia’s energy consumption and production is covered (table 1). Small and medium businesses with energy consumption or production less than these thresholds are excluded from the NGERS dataset. Table 1: NGERS reporting thresholds

Year Emissions EnergyControlling corporations a

2008–09 125 000 tonnes carbon dioxide equivalent

500 terajoules consumption/production

2009–10 87 500 tonnes carbon dioxide equivalent


From 2010–11

50 000 tonnes carbon dioxide equivalent


Facilities b

All years 25 000 tonnes carbon dioxide equivalent


Source: Department of Climate Change and Energy Efficiency.a If a business breaks the controlling corporation threshold it must report its energy consumption, production and/or emissions data for each facility under its control. b If a business does not break the controlling corporation threshold, but one of the facilities under its control breaks the facility threshold, that business is only required to report for that facility.

Prior to the introduction of NGERS in 2011, the Fuel and Electricity Survey (FES) compiled by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) was the primary data source for the AES. The FES was a nationwide annual survey of around 1400 large energy users and producers and asked questions on the quantity of fuels and electricity they produced and consumed. The survey respondents represented around 60 per cent of total Australian energy consumption. The FES was discontinued following the establishment of NGERS so as to reduce the reporting required by businesses. Mandatory NGERS reporting for entities consuming more than a defined threshold of energy should improve the estimates of energy use for many industries that the FES was unable to adequately survey. NGERS is a relatively new program and many companies are still adjusting to the required reporting of energy production, transformation and consumption information. Consequently, some revisions to the data initially reported have been made by reporting entities. Information from other Australian Government agencies, state-based agencies, industry associations and publicly available company reports are also used to supplement and/or validate NGERS data. These sources include trade data from the Australian Bureau of Statistics (ABS), the Bureau of Resources and Energy Economics’ (BREE) commodity database and the Australian Petroleum Statistics (APS).


For the 2012 AES, historical d ata was revised back to 2002–03 to incorporate improved information from NGERS, where appropriate, and to improve consistency in the time series. Further revisions to the time series will be undertaken on an ongoing basis as required. The AES is developed through the process of balancing energy consumption with production and trade, where much of the production and trade data is sourced independently. Ensuring internal consistency is an important component of the AES so as to ensure that the estimates of energy consumption at an aggregate level are as accurate as possible. The balance process was also used, in combination with other estimation techniques, to provide estimates for energy consumption in sectors with low or no NGER coverage, including commercial and services, agriculture and residential.The AES provides detailed energy consumption and production statistics, by state and by fuel, at an industry-specific level. The most detailed sub-sectoral coverage is provided in the energy-intensive manufacturing sectors and for Australia as a whole. In some cases, particularly at the state level, specific industry detail is not able to be released due to confidentiality reasons. The data is compiled and presented using concepts and definitions intended to align the AES with the framework used by the International Energy Agency (IEA). For example, production is categorised into primary production (raw materials) and total primary energy supply which incorporates refining, electricity generation and trade activities (see Appendix for a more detailed discussion). In addition, the consumption of energy commodities is assigned to the activity not the ‘industry of ownership’. For instance, the consumption of fuel in a residential vehicle is treated as a transport activity in the AES, while industry-based approaches such as the ABS Energy Accounts (catalogue no. 4604.0) would assign this use to the residential sector. In order to better represent energy flows throughout the economy, the AES has traditionally used a modified form of the Australian and New Zealand Standard Industrial Classification (ANZSIC) codes introduced in 1993. This modified classification structure contained additional classes in some industries and assumed aggregated energy use in others where appropriate. To ensure consistency with NGERS, 2006 ANZSIC codes were introduced in the previous release of the Australian Energy Update. In the case where the 1993 ANZSIC codes do not directly correspond with the 2006 codes, either the AES or NGER industry structure was adjusted by aggregating industries or existing data was transferred between codes to maintain comparability between datasets. Most changes enforced by the 2006 ANZSIC codes take place within the aggregated commercial and services sector, which do not materially affect the AES. As in the past, a modified ANZSIC classification structure has been used, to better represent the nature of energy flows and maintain consistency with international energy statistics conventions.The AES consists of 15 tables that can be accessed at www.bree.gov.au. The AES tables should be cited as: BREE 2012, 2012 Australian Energy Statistics, BREE, Canberra, July. Table 2 provides a summary of the AES data series that are available on the BREE website.Table 2: 2012 Australian Energy Statistics Tables

Table A Australian energy supply and consumption, 2002–03 to 2010–11, energy Table B Total final energy consumption and total net energy consumption in

Australia, by industry, energy unitsTable C Total final energy consumption and total net energy consumption in

Australia, by fuel, energy unitsTable D Australian consumption of coal, by state, physical unitsTable E Australian consumption of natural gas, by state, physical unitsTable F Australian energy consumption, by industry and fuel type, energy unitsTable G Australian energy consumption, by fuel type, physical unitsTable H Australian production of primary fuels, physical unitsTable I Australian consumption of electricity, by state, physical unitsTable J Australian energy supply and trade, by fuel type, energy unitsTable K Australian consumption of petroleum products, physical unitsTable L Australian petroleum supply and disposal, energy unitsTable M Australian energy imports, by fuel type, physical unitsTable N Australian energy exports, by fuel type, physical unitsTable O Australian electricity generation, by fuel type, physical units


3. ConsumptionAustralia’s total primary energy supply (TPES) can be used as a proxy for the total amount of energy consumed in the Australian economy including energy consumed in the conversion sector, such as electricity. Total energy consumption can also be referred to as net energy consumption (see Appendix). In 2010–11, Australian energy consumption is estimated to have increased by 3 per cent to 6100 petajoules (figure 1).In 2010–11, the share of coal in total consumption fell to 35 per cent—its lowest contribution since the early 1970s—as a result of substitution away from coal to other energy sources in the electricity generation sector (table 3). Figure 1: Australian energy consumption, by fuel type

Source: 2012 AES Table C.

Petroleum based products, including crude oil, diesel, and liquefied petroleum gas (LPG), contributed 36 per cent of total energy consumed in 2010–11. Substantial increases in consumption of petroleum products in the mining, petroleum refining, and chemical sectors accounted for the majority of the growth in oil consumption. The contribution of gas (including natural gas and town gas) to energy consumption increased to 25 per cent in 2010–11. This was partly driven by the electricity generation sector where gas-fired generation has exhibited robust growth. Renewable energy consumption provides around 4 per cent of total energy consumption and in 2010–11, 6 per cent higher than 2009–10.


Table 3: Australian energy consumption, by fuel type

growth share

PJ % % %

2010–11 2010–11 5 year average annual growth

Coal 2 129 -4.0 -1.4 34.9Oil 2 195 7.3 2.2 36.0Gas 1 516 7.2 5.6 24.8Renewables 260 5.6 -1.4 4.3Total 6 100 3.0 1.4 100.0

Source: 2012 AES Table C.

Among the renewable energy sources, solar energy (such as solar PV and solar hot water) has had the fastest growth increasing by 26 per cent in 2010–11, albeit from a relatively low base (table 4). This was partly driven by a number of supportive government programs at both the national and state levels, including the small-scale renewable energy scheme (SRES) which encouraged a more than threefold expansion of solar photovoltaics (PV) generation capacity between 2009 and 2010. Hydro energy consumption grew by 24 per cent in 2010–11. This growth was supported by increased inflows of water, particularly in Tasmania, that have allowed for greater electricity generation. Table 4: Australian renewable energy consumption, by fuel type

PJ growth %

2010–11 2010–11

Biomass 138 -5.4Biogas/biofuels 27 18.1Hydro 61 24.0Wind 21 14.9Solar 14 26.2Total 260 5.6

Source: 2012 AES Table A.

Consumption of biomass, including wood and bagasse, accounts for more than half of renewable energy consumption in Australia. Falling bagasse consumption contributed to an average decline in biomass consumption of 7.4 per cent a year over the past five years, and an average 1.4 per cent decline in total renewable energy consumption over the same period. In 2010–11, biomass consumption fell by 5 per cent as a result of reduced use in the electricity generation sector. This was partially attributable to lower sugar production that reduced the availability of inputs for electricity generation. In addition, a strong decline in bagasse consumption in the food, beverages and textile industry contributed to reduced consumption. Australia’s total final energy consumption (TFEC), which includes consumption of secondary fuels, is estimated to have increased by 2 per cent between 2009–10 and 2010–11 to total 3839 petajoules (table 5). The strongest growth was in the mining sector that increased year on year by around 10 per cent to total 389 petajoules while energy consumption in the transport sector grew by 2 per cent primarily due to higher fuel use in the air transport sector. Final energy consumption in the residential sector and other sectors, including agriculture, grew by around 2 per cent in 2010–11 relative to 2009–10.


Table 5: Australian total final energy consumption, by industry

PJ growth % share %

2010–11 2010–11 2010–11

Mining 389 10.4 10.1Manufacturing and construction 1 047 0.8 27.3Transport 1 479 2.0 38.5Commercial 308 -0.3 8.0Residential 452 1.7 11.8Other 165 1.7 4.3Total 3 839 2.2 100.0

Source: 2012 AES Table B.

Total final energy consumption in the manufacturing and construction sector increased by approximately 1 per cent in 2010–11. Within this sector, strong growth in the chemicals industry (an increase of around 2 per cent to 227 petajoules) and the iron and steel industry (an increase of 5 per cent to 73 petajoules) more than offset lower consumption in the wood, paper and printing industry (a decrease of 4 per cent to 74 petajoules). Energy consumption across Australia’s states and territories largely reflects the industry structure of each region. Shifts in the composition of Australian industry from energy-intensive manufacturing to less energy-intensive services over several decades, combined with the rising energy requirements associated with the mining boom, have led to changing trends in regional energy consumption growth. In 2010–11 total energy consumption increased in Western Australia and the Northern Territory by 10 and 6 per cent, respectively (table 6). The main drivers of these increases were the liquefied natural gas (LNG) processing and transport sectors. In Queensland the petroleum refining, mining and transport sectors contributed to a 4 per cent increase in total energy consumption. These sectors also underpinned a 3 per cent increase in South Australian total energy consumption.Total energy consumption increased by around 2 per cent in New South Wales because of greater energy use across multiple industries, including petroleum refining, transport, chemical and non-ferrous metals.Tasmanian total energy consumption remained relatively unchanged as increased consumption in the transport, electricity generation and mining sectors was offset by lower consumption in the residential and manufacturing sectors. Victorian total energy consumption declined by approximately 2 per cent because of lower energy consumption in the transport and electricity generation sectors.Table 6: Australian energy consumption, by state

PJ growth % share %

2010–11 2010–11 2010–11

New South Wales 1 639 1.6 26.9Victoria 1 393 -1.6 22.8Queensland 1 306 3.7 21.4South Australia 350 3.3 5.7Western Australia 1 182 10.2 19.4Tasmania 109 0.0 1.8Northern Territory 120 5.7 2.0Total 6 100 3.0 100.0


Source: 2012 AES.

4. Production and tradeIn 2010–11, Australia produced 16 640 petajoules of primary energy, almost three times higher than total consumption. Energy production declined by around 3 per cent in 2010–11 relative to 2009–10, because of lower production of coal, crude oil and uranium oxide that more than offset increased production of natural gas and renewable energy (figure 2). Figure 2: Australian energy production, by fuel type

Source: 2012 AES Table J.

The largest decline was in the production of black coal, which fell by 6 per cent in 2010–11, primarily because of weather related disruptions in Queensland (table 7). The energy associated with the combined production of Australian crude oil, condensate and LPG declined by 3 per cent in 2010–11. This was underpinned by cyclone related disruptions to oil production facilities in the March 2011 quarter, flooding in the Cooper Basin, and planned oil production outages in the North West Shelf. The increase in natural gas production in 2010–11 was largely a result of increased production at the North West Shelf project in Western Australia. Renewable energy currently accounts for about 2 per cent, or around 260 petajoules, of primary production in Australia. Bioenergy sources such as wood, bagasse and biogas account for most renewable energy produced in Australia, followed by hydro, wind and solar. In 2010–11, renewable energy increased by 6 per cent as lower production of bioenergy was more than offset by higher production from hydro, solar and wind energy.


Table 7: Australian energy production, by fuel type

growth share

PJ % % %

2010–11 2010–11 5 year average

annual growth

Black coal 9 215 -6.2 2.5 55.4Brown coal 727 -2.3 0.4 4.4Oil 1 021 -3.4 -0.1 6.1Natural gas 2 095 5.8 6.3 12.6Uranium oxide 3 322 -0.6 -6.7 20.0Renewables 260 5.6 -1.3 1.6Total 16 640 -3.2 0.3 100.0


In 2010–11, Australian electricity generation remained unchanged at about 250 000 gigawatt hours (or around 900 petajoules) as increased gas-fired and renewable generation was offset by declining coal-fired generation (figure 3). These changes illustrate the transition towards clean energy sources partly driven by supportive government policy. Increased hydro generation, supported by increased water inflows, also contributed to higher renewable generation. While generation in the National Electricity Market (NEM) has been declining since 2008–09, off-grid generation, largely supported by growth in the mining sector, has been increasing rapidly. Factors constraining growth in total electricity generation include reduced demand arising from rising retail electricity prices and milder weather, as well as long-term structural changes associated with the growth of small-scale generation. Figure 3: Australian electricity generation, by fuel type


Source: 2012 AES Table O.a Includes multi-fuel fired power plants.

Electricity generation from renewable sources including wind, hydro and solar has increased rapidly in recent years (table 8). Electricity generation from solar, hydro and wind increased substantially in 2010–11 relative to 2009–10 by 204, 24 and 15 per cent, respectively. This more than offset declining generation from bioenergy sources. The strong growth in solar energy was largely a result of government policies that encouraged the increased uptake of solar PV in the residential sector. Table 8: Australian electricity generation, by fuel type

growth share

PJ % % %

2010–11 2010–11 5 year average

annual growth

Fossil fuels

Black coal 116 949 -5.5 -2.1 46.3Brown coal 55 298 -1.4 0.3 21.9Natural gas 48 996 9.9 16.6 19.4Oil 3 094 -0.4 0.2 1.2Other a 2 716 -9.2 39.3 1.1Renewable energy

Bioenergy 2 102 -24.3 -11.7 0.8Wind 5 807 14.9 27.7 2.3Hydro 16 807 24.0 1.0 6.7Solar PV 850 204.3 56.6 0.3Total 252 619 0.2 1.6 100.0

Source: 2012 AES Table O.a Includes multi-fuel fired power plants.

Australia’s exports of energy commodities declined by 3 per cent in energy content terms to total 13 312 petajoules in 2010–11 (figure 4). This was largely a result of lower exports of uranium oxide and black coal because of weather-related factors that reduced exports by 8 per cent and 3 per cent, respectively (table 9). In energy content terms, coal accounted for 61 per cent (8053 petajoules) of Australia’s energy exports in 2010–11 while uranium accounted for around one-quarter (3267 petajoules). Given the large share of these two commodities in energy content terms, any changes in export volumes have a large effect on Australia’s total energy export volumes.


Figure 4: Australian energy exports, by fuel type


Partly offsetting declines in coal and uranium exports was a 12 per cent increase in exports of LNG in 2010–11 relative to 2009–10, as a result of increased production at the North West Shelf project. Table 9: Australian energy exports, by fuel type

growth share

PJ % % %

2010–11 2010–11 5 year average

annual growthBlack coal 8 053 -3.3 4.1 60.5Natural gas 1 086 11.7 10.7 8.2Uranium oxide 3 267 -8.0 -7.5 24.5Oil 907 5.4 4.9 6.8Total 13 312 -2.9 0.8 100.0


Australia is a net importer of liquid hydrocarbons, including crude oil and most petroleum products. In 2010–11, Australia exported around 907 petajoules of liquid fuels (excluding LNG, but including international bunkers) and imported around 1921 petajoules. Net imports of liquid fuels increased by 9 per cent as imports grew at a faster pace than exports.


AppendixEnergy statistics definitionsThe Australian Energy Statistics (AES) definitions were changed in 2011 for the use of energy at the end-use stage so as to conform with the International Energy Agency (IEA) definition for total final energy consumption (TFEC). The IEA framework requires that conversion activities that occur within industry sectors be reallocated to the conversion sector. In the new energy balances, all conversion activities have been transferred to the conversion sector. As a result, it is possible to present TFEC instead of the previous ‘gross final energy disposal’. Conversion activities that have been transferred to the conversion sector include electricity generation (previously included in the sector in which it occurred), liquefied natural gas (LNG) manufacturing (previously included in the mining end-use sector) and some chemicals manufacturing (for example, petroleum refining, which occurs in the chemicals sector).To better align the AES with the framework used by the IEA a number of new definitions have been introduced. The energy statistics definitions currently used in the AES are detailed below. Primary fuels: The forms of energy obtained directly from nature, involving only the extraction or collection of the energy source. They include non-renewable fuels such as coal, ethane and methane, crude oil and condensate, naturally occurring liquefied petroleum gas (LPG) and uranium; and renewable fuels such as wood, bagasse, landfill gas, hydroelectricity, wind energy and solar energy.Secondary fuels: The forms of energy that result from transforming primary fuels. They include electricity, petroleum products, LPG produced in refineries and liquid biofuels produced through the transformation of agricultural or waste feedstocks.Total primary energy supply (TPES): A measure of the total energy supplied within the economy. It is equal to indigenous production plus imports minus exports, plus stock changes and statistical discrepancies. TPES includes both primary and secondary fuels (figure A1).Figure A1: Total primary energy supply

Total net energy consumption: A measure of the total energy used within the economy. At an aggregate level, total net energy consumption is equivalent to total primary energy supply. It is equal to consumption of all fuels minus the derived fuels produced within the economy. This is equivalent to the total consumption of primary fuels in both the conversion and end-use sectors plus net imports of transformed fuels.Total net energy consumption includes fuel inputs in conversion activities—notably the consumption of fuels used to produce petroleum products and electricity—and own use and losses in the conversion sector. It also includes the consumption of transformed fuels, such as refined petroleum products, that are not produced domestically. It does not include secondary fuels that are produced domestically, such as coke, coal by-products and petroleum products, as the energy embodied in these fuels is already accounted for in the primary fuels that they are produced from (figure A2).Figure A2: Total net energy consumption


Total final energy consumption (TFEC): The total energy consumed in the final or end-use sectors. It is equal to TPES less energy consumed or lost in conversion, transmission and distribution.


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