Sylvie Willis
Australia's energy consumption is dominated by fossil fuels, which accounted for 91% of the country's primary energy mix in 2022-23. Oil made up the largest share at 39%, followed by coal and gas, both at 26%. Fossil fuels are a major source of air pollution, causing approximately five million premature deaths annually, and are responsible for about three-quarters of global greenhouse gas emissions. While Australia has seen a recent shift towards renewable energy sources, its energy system is undergoing its greatest transformation since the 1950s, driven by economic, engineering, and environmental factors.
| Characteristics | Values |
|---|---|
| Percentage of energy consumption from fossil fuels | 91% (2022-23) |
| Percentage of energy consumption from oil | 39% (2022-23) |
| Percentage of energy consumption from coal | 26% (2022-23) |
| Percentage of energy consumption from gas | 26% (2022-23) |
| Percentage of energy consumption from renewable sources | 9% |
| Percentage of electricity generation from renewable sources | 29% (2021) |
| Percentage of electricity generation from coal and gas | 70% (2021) |
| Percentage of total energy supplied by natural gas | 28% (2021) |
| Percentage of electricity generated from natural gas | 19% (2021) |
| Percentage of total final consumption of natural gas | 17% (2021) |
| Percentage of electricity generated from renewable sources | 39.4% (2022) |
| Percentage of global fossil carbon dioxide emissions | 4.5% |
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What You'll Learn
- Fossil fuels account for 91% of Australia's energy mix
- Oil is the largest component of Australia's energy mix
- Coal and gas accounted for 70% of electricity generation in 2021
- Australia is one of the world's largest exporters of fossil fuels
- Renewable energy sources accounted for 29% of Australia's energy mix in 2021
Fossil fuels account for 91% of Australia's energy mix
Fossil fuels are a major source of energy for Australia, with fossil fuels (coal, oil, and gas) accounting for 91% of the country's primary energy mix in 2022-23. Oil constituted the largest portion of this mix, at 39%, followed by coal and gas, each contributing 26%. This heavy reliance on fossil fuels has significant implications for both the environment and human health. The burning of these fuels is responsible for about three-quarters of global greenhouse gas emissions, and the effects of these emissions are already being felt in the form of global warming and climate change.
Australia has the dubious distinction of having the highest per capita CO2 emissions in the world in 2009, with 20.58 tons of CO2 emitted per person annually. However, emissions have decreased since then, with a one-third reduction in emissions per capita between 1990 and 2017. Additionally, the country's economy has become more environmentally friendly, with a 58.4% decrease in emissions intensity during the same period. Despite these improvements, Australia's energy sector remains heavily dependent on fossil fuels, with natural gas constituting 29% of its energy production in 2021 and coal and gas accounting for 70% of electricity generation the same year.
The Australian government has recognized the need to transition to renewable energy sources and reduce emissions. The country's energy system is undergoing significant changes, driven by economic, engineering, and environmental factors, as well as shifting consumer preferences for more control over electricity supply and use. The government's Powering Australia plan aims to create jobs, reduce electricity prices, and lower Australia's emissions to 43% of 2005 levels by 2030. The Rewiring the Nation program, part of the Powering Australia plan, involves investing in the upgrade, expansion, and modernization of electricity grids to accommodate more renewable energy sources and storage capacity.
While Australia still has a long way to go in reducing its reliance on fossil fuels, there has been notable progress in recent years. Renewable energy sources like wind, solar, and hydropower provided about 29% of the country's electricity generation in 2021, a significant increase from 10.5% in 2010. As of June 2022, there were over 3.1 million solar power PV systems and 4.6 million small-scale renewable installations in Australia, indicating a growing adoption of renewable energy technologies by Australian households and businesses.
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Oil is the largest component of Australia's energy mix
Fossil fuels (coal, oil, and gas) accounted for 91% of Australia's primary energy mix in 2022-23. Oil accounted for the largest share of Australia's primary energy mix in 2022-23, at 39%. Natural gas was the second-largest component of Australia's energy mix in 2021, making up 29% of its energy production, 28% of the Total Energy Supply (TES), 19% of electricity generation, and 17% of Total Final Consumption (TFC). Oil products, on the other hand, made up 2.9% of the total generating capacity from all sources in 2008-09.
Australia's energy system is undergoing its greatest transformation since the 1950s, driven by economic, engineering, and environmental factors. Consumer preferences are also changing, with an increasing desire for independence and control over electricity supply and use. Wind and solar photovoltaics (PV) are now the cheapest forms of new electricity generation in terms of electricity produced. To meet net-zero targets, Australia will need to accelerate and effectively double the level of renewable generation each decade from now to 2050. The Australian Government is committed to delivering on this through its Powering Australia plan.
Despite these efforts, Australia has a global carbon footprint that far exceeds its economic size and population. It is responsible for around 4.5% of global fossil carbon dioxide emissions, with 80% of those emissions coming from its fossil fuel exports. Australia's domestic GHG emissions per capita are among the highest in the world, and the country is also one of the world's largest exporters of fossil fuels. While fossil fuel production contributes significantly to Australia's domestic territorial emissions, most of the emissions from Australia's fossil fuels occur outside of its borders when they are combusted or used overseas.
Protecting and restoring northern forests, alongside steep and rapid reductions in fossil fuel emissions, is essential for mitigating emissions and supporting forest ecosystem services and biodiversity. Australia's LNG shipbuilding industry appears to be doubling down on building new carriers, ignoring the global shift to a low-carbon economy. Australia has calculated the climate implications of fracking the Canning basin, part of the pristine Kimberley region in Western Australia, where four companies are eyeing this region, home to the endangered bilby.
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Coal and gas accounted for 70% of electricity generation in 2021
In 2021, coal and gas accounted for around 70% of electricity generation in Australia. This figure has decreased significantly from a decade ago, when renewable energy sources contributed only around 10.5% to the country's electricity generation. In 2021, renewables made up 29% of the energy mix, with wind, solar, and hydro being the main sources.
Australia has one of the highest per capita CO2 emissions in the world, with fossil fuels dominating the country's energy consumption. In 2022-23, fossil fuels accounted for 91% of Australia's primary energy mix, with oil having the largest share at 39%, followed by coal and gas at 26% each.
The burning of fossil fuels has severe consequences for the environment and human health. It is responsible for about three-quarters of global greenhouse gas emissions and is a major contributor to air pollution, causing millions of premature deaths annually. As a result, there is a growing need to transition to low-carbon energy sources, such as nuclear and renewable technologies.
Australia's energy landscape is undergoing significant changes, driven by economic, engineering, and environmental factors. The Australian government has implemented initiatives like the Large-scale Renewable Energy Target (LRET) scheme and the Rewiring the Nation program, which aims to upgrade and modernise electricity grids to accommodate more renewable energy sources. As of June 2022, there were over 3.1 million solar power PV systems and 4.6 million small-scale renewable installations in the country.
Despite these efforts, Australia's energy consumption rose by 2% in 2022-23, and the country has a global carbon footprint that exceeds its economic size and population. Australia is also one of the largest exporters of fossil fuels, contributing significantly to global emissions.
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Australia is one of the world's largest exporters of fossil fuels
Australia's energy consumption increased by 2% in 2022–23, reaching 5,882 petajoules. Fossil fuels (coal, oil, and gas) accounted for 91% of Australia's primary energy mix during this period. Oil had the largest share at 39%, followed by coal and gas, both at 26%.
Australia's energy system is undergoing a significant transformation, driven by economic, engineering, and environmental factors. The country is witnessing a shift towards renewable energy sources like solar and wind power, with renewable energy accounting for 39.4% of the total electricity generated in 2022. Despite this, Australia has a global carbon footprint that is disproportionately large relative to its economic size and population. The country is responsible for approximately 4.5% of global fossil carbon dioxide emissions, with 80% of these emissions stemming from its fossil fuel exports.
Australia's fossil fuel exports have had a significant impact on global carbon dioxide emissions. Between 1961 and 2023, the cumulative fossil CO2 emissions from these exports were calculated to be 30 billion tonnes of CO2. Current government policies are projected to increase these emissions by 50% over the next decade, up to 2035. This increase will consume 9% of the remaining global carbon budget to limit warming to 1.5 degrees Celsius.
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Renewable energy sources accounted for 29% of Australia's energy mix in 2021
Australia's energy consumption is dominated by fossil fuels, with oil and coal being the most significant sources. In 2022-23, fossil fuels accounted for 91% of the country's primary energy mix, with oil contributing the largest share at 39%. However, there has been a notable shift towards renewable energy sources in recent years.
In 2021, renewable energy sources, including wind, solar, and hydropower, accounted for 29% of Australia's electricity generation. This marks a significant increase from 2010, when renewables contributed only around 10.5% to the energy mix. This growth in renewable energy usage is driven by economic, engineering, and environmental factors, as well as changing consumer preferences for more control over electricity supply and use.
The Australian government has implemented initiatives to further promote renewable energy adoption. The Large-scale Renewable Energy Target (LRET) scheme has accredited 29.2 GW of large-scale renewable energy capacity as of May 2022. Additionally, the Rewiring the Nation program aims to upgrade and modernise electricity grids to unlock renewables and storage capacity. These efforts are part of Australia's commitment to reducing emissions and transitioning towards a more sustainable energy landscape.
Despite these positive developments, Australia has one of the largest carbon footprints relative to its economic size and population. The country is a major exporter of fossil fuels, and while most emissions from these exports occur outside its borders, the industry contributes significantly to Australia's domestic territorial emissions. As of 2023, Australia's fossil fuel exports were calculated to contribute around 4.5% of global fossil carbon dioxide emissions.
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Frequently asked questions
Fossil fuels (coal, oil and gas) accounted for 91% of Australia’s primary energy mix in 2022-23. Oil accounted for the largest share at 39%, followed by coal and gas both at 26%.
Natural gas is the third highest energy source in Australia (after oil and coal). Gas used to come from large remote reservoirs, such as the Moomba and Bass Strait gas fields. More recently, coal seam gas comes from Queensland with untapped reserves in NSW and Victoria.
Australia has a global carbon footprint that far exceeds its economic size and population. It is responsible for around 4.5% of global fossil carbon dioxide emissions, with 80% of those emissions coming from its fossil fuel exports.
Australia’s energy system is undergoing its greatest transformation since the 1950s. The government’s Rewiring the Nation program involves investing in upgrading, expanding and modernising electricity grids to unlock renewables and storage capacity.
