Renewable Energy – A Contribution to Australia’s Environmental and Economic Sustainability

By McLennan Magasanik Associates Pty Ltd for the Renewable Energy Generators of Australia

Australia has an innovative and diverse renewable energy industry leading the world in the development of technologies and expertise in a range of areas.

The ongoing development of the industry in Australia faces some significant challenges in order to contribute to the global challenge of increasing energy output to meet growing demand while simultaneously reducing greenhouse gas emissions and ensuring the long term security of energy supply. Without the development of new policy measures in Australia investment in renewable generation will peak by 2007 and then fall off sharply. By the end of this decade, investment could fall to a trickle, in stark contrast with the world trend.

This report draws together information from across the renewable energy industry in Australia and examines the contribution the industry makes to the national economy. It identifies the costs of delivering electricity from the range of existing renewable energy and fossil fuel technologies, including cost projections for both the short and long term future. The role the renewable energy industry could play in meeting deep cuts in emissions is also highlighted. Finally, the need for new market incentives to ensure the necessary level of future and ongoing investment is examined.