Electricity generation emissions
Electricity generation emissions are produced when fossil fuels, such as coal and natural gas, are combusted to
produce electricity. Renewable sources of electricity (such as wind and solar) do not emit greenhouse gases.
Electricity generation accounts for the largest sectoral share—one third—of Australia’s emissions.
Electricity generation emissions grew rapidly from 175 Mt CO2-e in 2000 to 210 Mt in 2009, then fell to 198 Mt
(13 per cent above 2000 levels) in 2012. The recent fall reflects both a move to lower-emissions generation and
flattening demand for electricity. Demand for electricity from the National Electricity Market, which accounts for
over 80 per cent of Australia’s demand, fell by an average annual rate of 1.3 per cent between 2010 and 2013.
Future emissions depend heavily on a range of factors including economic conditions and policy settings. With the
existing Renewable Energy Target in place, but without a carbon price or other new incentives, electricity
generation emissions are projected to stay flat to 2020 then rise substantially to 243 Mt CO2-e in 2030. On the
other hand, with a high price incentive, electricity generation could be the single largest source of domestic
emissions reductions over the next two decades, reducing emissions to 142 Mt CO2-e in 2020 and 70 Mt in 2030.
Australia’s electricity generation emissions, 1990 to 2030
Note: The Targets and Progress Review examined four scenarios: no carbon price, and low, medium and high price: see Box 10.1 for details.
Source: Climate Change Authority Targets and Progress Review Figure D.12.
Emissions reduction opportunities include:
 energy efficiency in residential and commercial buildings and industry, and
 transitioning away from high emissions generation, particularly coal-fired, and towards lower emissions
generation, particularly renewables.
Challenges to reducing emissions include:
 further ‘lock in’ of inefficient buildings and industry, which would make any future transition more difficult and
expensive, and
 increased demand for electricity (for example a move to electric vehicles in transport, and switching from
direct combustion of fossil fuels to electricity in industry). While this could increase emissions from electricity
generation, the net effect on Australia’s emissions would depend on the relative emissions intensity of these
activities and the electricity supply.
See Chapter 11 and Appendix D3 of the Targets and Progress Review Final Report for more information