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Gas, Wind Energy Drive Australia Electricity Development-Abare



CANBERRA -(Dow Jones)- Seven Australian electricity generation projects were completed in the six months ended Oct. 31, adding 1,582 megawatts of capacity to the national grid, the Australian Bureau of Agricultural and Resource Economics said Wednesday.

They comprised one coal-fired plant, one coal seam gas, two natural gas and three wind-powered electricity generation projects.

As of last month, there were also 18 projects at an advanced stage of development--that is, either committed or under construction--with a total capacity of 3,569 MW and an estimated capital cost of A$5.3 billion, Abare said.

Of those, half were renewable energy projects--demonstrating the potential for renewable technologies, notably wind, to add "significant renewable energy capacity to the electricity grid," Terry Sheales, Abare's deputy executive director, said in a statement.

Rich in fossil fuels, Australia was for a long time a laggard in developing alternative energies. Coal accounts for 80% of its power needs, mostly burnt at conventional plants where greenhouse gases are vented.

But as part of a broader bid to tackle climate change, Australian lawmakers in August approved a mandate for renewables to account for 20% of national capacity by 2020, from less than 7% now.

The renewable energy laws set a statutory target of 9,500 gigawatt-hours from renewable electricity sources in 2010, increasing to 45,000 GWh in 2020.

The challenge of converting Australia's electricity generation capacity to a higher renewable energy mix remains large, however.

According to the Abare report, nonrenewable generation projects such as natural gas and coal seam methane-fired generation still accounted for some 76% of total planned new electricity capacity as at Oct. 31, compared with around 86% a year earlier.

Eight wind-powered projects were underway, with all expected to be in operation by 2011, adding 733 MW to capacity. One hydroelectricity plant was under development.

-By Rachel Pannett, Dow Jones Newswires; 61-2-6208-0901; rachel.pannett@ dowjones.com


  (END) Dow Jones Newswires
  11-17-091920ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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