2014 Australian
Energy Update
July 2014
1
BREE 2014, 2014 Australian Energy Update, Canberra, July.
© Commonwealth of Australia 2014
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 Executive Director, 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.
ISSN (Online): 2203-8337
Postal address:
Bureau of Resources and Energy Economics
GPO Box 1564
Canberra ACT 2601 Australia
Email: info@bree.gov.au
Web: www.bree.gov.au
Acknowledgements:
The 2014 Australian Energy Update and accompanying 2014 Australian Energy Statistics were
prepared by Allison Ball, Alex Feng, Caitlin McCluskey, Pam Pham, George Stanwix and Tom Willcock.
The authors would like to express their appreciation for the assistance and support provided by
colleagues in BREE, Department of Industry, Department of Environment, the Clean Energy
Regulator, the Australian Bureau of Statistics, the Bureau of Infrastructure, Transport and Regional
Economics, the Australian Energy Market Operator, the Independent Market Operator of Western
Australia, Northern Territory Power and Water Corporation and various other state government
agencies.
Cover image source: Shutterstock
2
Foreword
Australia’s energy markets are undergoing significant transformations, through changing patterns of
demand and supply, developments in international markets and technological change. To help plan
for this future and to make sound policy and investment decisions, 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 energy reporting obligations. It is updated each year
and consists of detailed historical energy consumption, production and trade statistics. This edition
contains the latest data for 2012–13. I encourage you to use the data that is available at
www.bree.gov.au.
The latest set of statistics shows that energy production in Australia is continuing to rise, but that
most of this growth in production is to support our export markets, with energy commodity exports
remaining strong. Domestic energy consumption fell marginally, with growth in the mining and some
manufacturing sectors more than offset by a decline in energy used in electricity generation. The
majority of our electricity generation continues to be based on coal, but coal-fired generation is
falling sharply, in contrast to growth in gas and renewable electricity generation.
For the first time this year, BREE has released a Guide to the Australian Energy Statistics. This guide
aims to improve user understanding, transparency and accessibility of the dataset. It contains
information on the publication tables, definitions and concepts, data sources and methodology, and
conversion factors.
The guide and accompanying dataset will be further developed in the next few years. BREE
welcomes any feedback, which can be provided to energy@bree.gov.au.
Wayne Calder
Deputy Executive Director
Bureau of Resources and Energy Economics
July 2014
3
Contents
Foreword
3
Summary
5
1. About the Australian Energy Statistics
7
2. Energy consumption
9
By fuel type
9
By industry
11
By region
13
3. Energy production
14
Primary production
14
Electricity generation
15
4. Energy trade
18
Exports
18
Imports
19
Figures
Figure 1: Australian energy flows, 2012–13
6
Figure 2: Australian energy intensity
9
Figure 3: Australian energy consumption, by fuel type
10
Figure 4: Australian net energy consumption, by industry
11
Figure 5: Australian energy production, by fuel type
14
Figure 6: Australian electricity generation, by fuel type
16
Figure 7: Australian electricity generation from renewable energy sources
17
Figure 8: Australian energy exports, by fuel type
18
Figure 9: Australian energy imports, by fuel type
19
Tables
Table 1: 2014 Australian Energy Statistics tables
7
Table 2: Australian energy consumption, by fuel type
10
Table 3: Australian renewable energy consumption, by fuel type
11
Table 4: Australian net energy consumption, by industry
12
Table 5: Australian total final energy consumption, by industry
13
Table 6: Australian energy consumption, by state and territory
13
Table 7: Australian energy production, by fuel type
14
Table 8: Australian electricity generation, by fuel type
16
Table 9: Australian energy exports, by fuel type
19
Table 10: Australian energy imports, by fuel type
20
4
Summary
Energy consumption

Australian energy consumption fell marginally in 2012–13, to around 5 884 petajoules, despite
continued growth in the Australian economy.

Growth in energy consumption in the mining, manufacturing and commercial and services
sectors was offset by a fall in energy use for electricity generation.

Final energy consumption (energy consumed by end-use sectors excluding energy used in
conversion activities such as electricity generation) rose by 2 per cent in 2012–13.

Oil remained the largest primary energy source in Australia, at 38 per cent in 2012–13, followed
by coal (33 per cent) and natural gas (24 per cent). Renewables accounted for 6 per cent of
Australia’s energy mix in 2012–13.

Oil and gas consumption increased by 1 per cent and 2 per cent respectively in 2012–13, while
use of renewable energy rose by 12 per cent. In contrast, coal consumption fell by 6 per cent.

Energy consumption in New South Wales and Victoria continued to fall in 2012–13, although
they remained the largest energy using states. Growth in energy use in Western Australia and
Queensland remained strong, supported by growth in the mining and manufacturing sectors.
Energy production

Australian energy production, in energy content terms, rose by 9 per cent to 19 318 petajoules
in 2012–13, supported by increases in black coal, uranium oxide and natural gas production.

Black coal production increased by 9 per cent, uranium oxide by 18 per cent and natural gas by
14 per cent in 2012–13. Most of this expansion was in projects destined for export markets.
Australia’s energy flows in 2012–13, from production to end use, are presented in Figure 1.

In contrast, Australian oil production declined by 12 per cent in 2012–13, with new capacity not
sufficient to offset the continued decline in ageing fields.
Electricity generation

Total electricity generation in Australia continued to decline in 2012–13, by 0.3 per cent to 249
terawatt hours (897 petajoules). This reflects the fall in electricity demand in the industrial and
residential sectors in recent years in the National Electricity Market, although has been partially
offset by continued growth in off-grid generation.

Despite a 7 per cent decline in coal-fired generation in 2012–13, coal remained the largest
source of electricity generation in Australia at 64 per cent. Natural gas accounted for 20 per
cent of the electricity mix in 2012–13, with gas-fired generation rising by 5 per cent.

Renewable generation rebounded in 2012–13 to rise by 26 per cent, to comprise 13 per cent of
total generation in Australia. Most of this growth is attributable to increased hydro energy
generation, although wind and solar energy also continued to grow strongly.
Energy trade

Energy exports, in energy content terms, rose by 14 per cent to 15 504 petajoules in 2012–13,
supported by strong growth in black coal, uranium oxide and liquefied natural gas exports. This
is equivalent to around 80 per cent of Australian energy production.

Energy imports also increased strongly, by 5 per cent in 2012–13 to 2 310 petajoules. Crude oil
and refined products accounted for the majority of Australia’s energy imports.
5
Figure 1: Australian energy flows, 2012–13
Note: Some totals do not add due to statistical discrepancies and rounding.
Source: BREE 2014, Australian Energy Statistics, Table A and H.
6
1. About the Australian Energy Statistics
The Australian Energy Statistics (AES) is the authoritative and official source of annual energy data
for Australia. It provides information designed to increase the understanding of energy supply and
use in Australia, to support decision making in government and industry, and to meet Australia’s
annual international energy reporting obligations. This official energy data set also underpins the
calculation of Australia’s greenhouse gas emissions from energy use by the Department of
Environment.
The AES provides detailed energy consumption, production and trade statistics, by state and
territory, by energy type, and by industry, in energy content and physical units. The most detailed
sub-sectoral coverage is provided in the energy-intensive manufacturing sectors and for Australia
as a whole. Where possible, 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).
Key data sources include facility level reporting from the National Greenhouse and Energy
Reporting Scheme (NGERS), BREE databases, estimates using statistical techniques, datasets from
other Australian and state government agencies, and public company reporting.
The AES has been published by BREE (2012 to present) and previously by the Australian Bureau of
Agricultural and Resources Economics and Sciences (ABARES) (1989 to 2011), and various former
Australian government agencies, since the mid-1970s.
The AES dataset is made available through a series of tables in Excel format at www.bree.gov.au. A
list of the AES tables available on the BREE website is provided in Table 1.
Table 1: 2014 Australian Energy Statistics tables
Table A
Table B
Table C
Table D
Table E
Table F
Table G
Table H
Table I
Table J
Table K
Table L
Table M
Table N
Table O
Table P
Table Q
Australian energy supply and consumption, energy units
Australian energy intensity and energy consumption per person, by state, energy units
Australian total net energy consumption, by state, by fuel, energy units
Australian total net energy consumption, by state, by detailed fuel, energy units
Australian total net energy consumption, by state, by industry, energy units
Australian energy consumption, by state, by industry, by fuel, energy units
Australian energy consumption, by state, by fuel, physical units
Australian total final energy consumption, by fuel, by industry, energy units
Australian production of primary fuels, by state, physical units
Australian energy supply and trade, by fuel type, energy units
Australian consumption of petroleum products, by state, physical units
Australian consumption of electricity, by state, physical units
Australian energy imports, by fuel type, physical units
Australian energy exports, by fuel type, physical units
Australian electricity generation, by state, by fuel type, physical units
Australian consumption and production of coal, by state, physical units
Australian consumption and production of natural gas, by state, physical units
The AES is accompanied by the Australian Energy Update, a short article highlighting recent trends
in Australian energy consumption, production and trade.
In 2014, the Guide to the Australian Energy Statistics was released for the first time, to assist users
7
in better understanding the AES and to increase the transparency of the dataset. It contains
information on the publication tables, definitions and concepts, data sources and methodology, and
conversion factors.
8
2. Energy consumption
Energy consumption measures the total amount of energy used within the Australian economy. It is
equal to indigenous production plus imports minus exports (and changes in stocks). It includes
energy consumed in energy conversion activities, such as electricity generation and petroleum
refining, but excludes derived fuels produced domestically to avoid double counting. It can be
referred to as total net energy consumption and is also equal to total primary energy supply. Further
detail is provided in BREE 2014 Guide to the Australian Energy Statistics.
In 2012–13, Australian energy consumption fell marginally compared with the previous year, to
5 884 petajoules. While energy consumption fell, the Australian economy grew by 2.6 per cent in
2012–13. Energy consumption in the mining, manufacturing and commercial and services sectors
continued to rise, partially offsetting a decline in energy use in electricity generation.
Over the past three decades, growth in energy consumption has generally remained below the rate
of economic growth (Figure 2). This indicates a longer term decline in the ratio of energy use to
activity of the Australian economy, or energy intensity. This can be attributed to two key factors:
improvements in energy efficiency associated with technological advancement; and a shift in
industry structure towards less energy-intensive sectors such as commercial and services. In
2012–13, energy intensity, as defined by the ratio of energy consumption to gross domestic product,
declined by nearly 3 per cent.
Figure 2: Australian energy intensity
Source: BREE 2014, Australian Energy Statistics, Table B.
By fuel type
Oil, including crude oil, liquefied petroleum gas (LPG) and refined products, accounted for the largest
share of Australian energy consumption, at 38 per cent in 2012–13 (Table 2). Increased consumption
of oil in the mining and transport sectors contributed to overall growth of 1 per cent in Australian oil
consumption in 2012–13.
9
Table 2: Australian energy consumption, by fuel type
2012-13
Coal
Oil
Gas
Renewables
Total
PJ
1 946
2 221
1 386
330
5 884
share (%)
33.1
37.7
23.6
5.6
100
average annual growth
2012-13 (%)
10 years (%)
-5.9
-1.4
1.3
2.4
2.2
3.3
11.5
1.9
-0.5
1.1
Source: BREE 2014, Australian Energy Statistics, Table C.
Coal remained the second largest primary fuel consumed in 2012–13, but its relative share of total
Australian energy consumption has continued to fall (Figure 3). In 2012–13 black and brown coal
together accounted for 33 per cent of total energy consumption, its lowest share since the early
1970s. Coal consumption fell by 6 per cent in 2012–13, underpinned by falling coal use in the
electricity generation and iron and steel sectors. This reflects not only a decline in output in both
these sectors, but also a shift away from use of coal in electricity generation in recent years.
Figure 3: Australian energy consumption, by fuel type
Source: BREE 2014, Australian Energy Statistics, Table C.
The share of natural gas in Australia’s energy mix has increased in recent years, supported by greater
uptake in the electricity generation sector and growth in industrial use, particularly in the nonferrous metals sector. In 2012–13, natural gas accounted for 24 per cent of total energy
consumption. Gas consumption rose by 2 per cent in 2012–13, supported by an expansion in
alumina output and additional gas-fired electricity generation capacity.
Renewable energy sources accounted for the remaining 6 per cent of total energy consumption in
2012–13, with its share of the energy mix increasing compared with the previous year. In 2012–13
renewable energy consumption rose by 12 per cent, with growth in all renewable energy sources
except for biogas and biofuels (Table 3).
10
Table 3: Australian renewable energy consumption, by fuel type
2012-13
Biomass
Biogas
Biofuels
Hydro
Wind
Solar PV
Solar hotwater
Total
PJ
184
14
12
66
26
14
13
330
share (%)
55.9
4.3
3.8
20.0
8.0
4.2
3.9
100
average annual growth
2012-13 (%)
10 years (%)
6.2
-1.1
-5.0
5.4
-3.8
24.2
29.7
1.3
19.9
29.7
49.2
56.4
3.9
19.3
11.5
1.9
Source: BREE 2014, Australian Energy Statistics, Table D, F and O.
Hydro was a significant driver of growth in renewable energy use in 2012–13, increasing by 30 per
cent relative to 2011–12, reflecting increased water inflows in south eastern Australia as well as
improved relative costs of hydro under the carbon price. Solar PV and wind energy use also grew
strongly over the same period, by 49 and 20 per cent, respectively. Consumption of biomass,
including wood and bagasse, rose by 6 per cent in 2012–13, primarily driven by increased bagasse
consumption for heat in the food, beverage and tobacco sector. This was underpinned by the
recovery in sugar cane harvest in 2012–13 from tropical cyclone Yasi the previous year.
By industry
The electricity supply, transport and manufacturing sectors were the largest energy users in 2012–13
(Figure 4). Together these sectors accounted for around 76 per cent of total Australian net energy
consumption.
Figure 4: Australian net energy consumption, by industry
a Includes ANZSIC Divisions F, G, H, J, K, L, M, N, O, P, Q, R, S and the water supply, sewerage and drainage service
industries. b Includes consumption of lubricants and greases, bitumen and solvents, as well as energy consumption in the
gas production and distribution, and construction industries.
Source: BREE 2014, Australian Energy Statistics, Table E.
The electricity supply sector accounted for the largest share, 28 per cent, of Australia’s total net
energy consumption in 2012–13 (Table 4). In 2012–13 energy consumption in this sector (including
fuel inputs to electricity generation and own use) declined by 6 per cent, reflecting reduced
11
electricity demand. The transport sector was the second largest net energy consumer, accounting
for 26 per cent of the total. In 2012–13, increased energy use in road, rail and air transport resulted
in a marginal increase in energy consumption in the transport sector.
Table 4: Australian net energy consumption, by industry
2012-13
Agriculture
Mining
Manufacturing
Construction
Electricity supply
Transport
Commercial
Residential
Other
Total
PJ
99
486
1 275
25
1 626
1 545
308
454
66
5 884
share (%)
1.7
8.3
21.7
0.4
27.6
26.3
5.2
7.7
1.1
100
average annual growth
2012-13 (%)
10 years (%)
1.1
0.2
8.7
5.7
1.5
1.0
-1.6
-1.1
-5.9
-0.2
0.2
1.8
3.2
1.6
0.3
1.0
-2.4
-2.5
-0.5
1.1
Note: Other includes consumption of lubricants and greases, bitumen and solvents, and energy consumption in the gas
production and distribution industries.
Source: BREE 2014, Australian Energy Statistics, Table E.
The manufacturing sector accounted for 22 per cent of total net energy consumption in 2012–13.
Energy consumption in the manufacturing sector increased by nearly 2 per cent in 2012–13, as
growth in energy use in the food, beverage and tobacco and the non-ferrous metals subsectors
offset declines in other manufacturing subsectors. In particular, growth in alumina output supported
an increase in gas consumption in the non-ferrous metals subsector. In contrast, the closure of the
Kurri Kurri aluminium smelter in 2012 reduced electricity consumption in that sector. The closure of
the Clyde oil refinery and conversion to an import terminal in 2012 led to a decline in energy use in
the petroleum refining sector.
Energy consumption in the mining sector continued to grow strongly in 2012–13, by 9 per cent. This
reflects the transition from investment to production phase of the mining boom, with significant
increases in production across a range of resources and energy commodities. In the year to April
2013, according to BREE’s Resources and Energy Major Projects List, production capacity expanded
by 100 million tonnes for iron ore, 22 million tonnes for coal, 4.3 million tonnes for LNG and 2 million
tonnes for alumina.
Energy use also expanded in the commercial and services and the residential sectors in 2012–13.
However, the rate of growth in energy consumption in the residential sector has slowed in recent
years. Electricity consumption in the residential sector fell by 2 per cent in 2012–13, in response to
higher electricity prices and adoption of more energy efficient practices. Consumption in the
residential sector includes own electricity generation from rooftop solar photovoltaic (PV) systems.
Total final energy consumption is the energy used by the final or ‘end-use’ sectors, and can be seen
as a subset of total energy supplied. It includes all energy consumed, except for the consumption of
energy that is used to convert or transform primary energy into different forms of energy. For
example, refinery feedstock that is used to produce petroleum products and fuels consumed in the
generation of electricity are both excluded. Final energy consumption increased by 2 per cent in
2012–13 (Table 5). This growth in end-use energy consumption partially offset the decline in energy
conversion sectors such as electricity generation.
12
Table 5: Australian total final energy consumption, by industry
2012-13
PJ
99
486
1 072
25
1 525
308
454
53
4 022
Agriculture
Mining
Manufacturing
Construction
Transport
Commercial
Residential
Other
Total
share (%)
2.5
12.1
26.6
0.6
37.9
7.6
11.3
1.3
100
average annual growth
2012-13 (%)
1.1
8.7
3.3
-1.6
0.1
3.2
0.3
-3.0
2.2
Note: Energy consumption in manufacturing, transport and other differs from Table 4 due to exclusion of energy used in
conversion activities. Other includes consumption of lubricants and greases, bitumen and solvents.
Source: BREE 2014, Australian Energy Statistics, Table H.
By region
New South Wales and Victoria were the largest energy consumers in 2012–13, together accounting
for about half of Australia’s energy consumption (Table 6). This was followed by Queensland (23 per
cent) and Western Australia (18 per cent). In 2012–13, declining energy consumption in New South
Wales, Victoria, South Australia and the Northern Territory outweighed growth in Queensland,
Western Australia and Tasmania.
Table 6: Australian energy consumption, by state and territory
2012-13
New South Wales a
Victoria
Queensland
South Australia
Western Australia
Tasmania
Northern Territory
Total
PJ
1 573
1 413
1 326
330
1 035
110
97
5 884
share (%)
26.7
24.0
22.5
5.6
17.6
1.9
1.7
100
average annual growth
2012-13 (%)
10 years (%)
-2.9
0.0
-3.2
0.4
2.0
2.3
-1.7
-1.1
3.8
3.1
4.6
0.7
-0.1
6.0
-0.5
1.1
a Includes Australian Capital Territory.
Source: BREE 2014, Australian Energy Statistics, Table C.
In 2012–13 energy consumption in Western Australia and Queensland increased by 4 and 2 per cent,
respectively. Increased energy use in the mining, manufacturing and electricity generation sectors
underpinned the growth in Western Australia. In Queensland the increase in energy consumption
was supported by growth in the manufacturing, transport and mining sectors, which more than
offset the decline in energy use in the electricity generation sector. The increase in Tasmanian
consumption, by 5 per cent, was the result of the growth in the pulp, paper and printing, and
electricity generation sectors.
In New South Wales, falling energy consumption in the manufacturing and electricity generation
sectors contributed to a 3 per cent decline in total energy consumption. The closure of two large
industrial users in 2012—the Kurri Kurri aluminium smelter and the Clyde oil refinery—was a
significant contributor to this decline. In Victoria, declines in energy use in the electricity generation
sector led to a 3 per cent fall in total consumption in 2012–13. South Australia’s total energy
consumption also fell by 2 per cent over the same period.
13
3. Energy production
Primary production
Energy production is defined as the total amount of primary energy produced in the Australian
economy, as measured before consumption or transformation. Forms of renewable energy that
produce electricity directly without a thermal component, such as wind, hydro and solar PV, are
considered primary energy sources, whereas coal-fired electricity generation is considered
secondary energy production as the coal is already accounted for when mined.
In 2012–13, Australia produced 19 318 petajoules of primary energy (Figure 5). This was an increase
of more than 9 per cent on 2011–12 production levels (Table 7), and is more than three times
domestic energy consumption. Australia is a large net energy exporter, particularly of coal, uranium
oxide and natural gas.
Figure 5: Australian energy production, by fuel type
Source: BREE 2014, Australian Energy Statistics, Table J.
Table 7: Australian energy production, by fuel type
Black coal
Brown coal
Gas
Oil and NGL
LPG
Renewables
Uranium
Total
2012-13
PJ
share (%)
10 790
55.9
647
3.4
2 439
12.6
787
4.1
95
0.5
330
1.7
4 229
21.9
19 318
100
average annual growth
2012-13 (%)
10 years (%)
9.2
4.1
-13.3
-1.3
14.3
5.8
-11.6
-4.0
-7.5
-3.0
11.5
1.9
17.5
-0.7
9.4
2.3
Source: BREE 2014, Australian Energy Statistics, Table J.
Energy production growth in 2012–13 was mainly a result of development and expansion of projects
for export markets. A number of large coal projects in New South Wales’ Hunter Valley and
Gunnedah Basin and Queensland’s Bowen Basin commenced production, contributing to a 9 per
cent increase in black coal production. The largest project, Rio Tinto/Mitsubishi’s Hunter Valley
14
operations, added 6 million tonnes a year (around 150 petajoules) of new capacity. Narrabri (4.5
million tonnes), Mount Arthur (4 million tonnes) and Bengalla (1.5 million tonnes) in New South
Wales, and Burton (2.5 million tonnes) in Queensland also contributed significant additional
capacity.
Pluto LNG, Australia’s third gas export facility, also started operations in 2012–13, increasing
Australia’s gas export capacity by more than 20 per cent. This supported a 14 per cent rise in
Australian gas production. Production from coal seam gas accounted for 12 per cent of total gas
production in 2012–13 (on an energy content basis), and rose by 3 per cent over the same period.
Uranium production also increased significantly at the Ranger mine in the Northern Territory as it
returned to full production in the second half of 2012 following flooding earlier in the year.
In contrast, brown coal production fell by around 13 per cent in 2012–13, in line with a fall in brown
coal-fired electricity generation. Domestic crude oil and LPG production also fell significantly, by
around 12 per cent and 7 per cent respectively. While some new projects commenced production
during the year, this additional capacity was not sufficient to offset the decline in production from
ageing fields in eastern Australia.
Renewable energy production rose by 12 per cent in 2012–13 to reach 330 petajoules, due to strong
growth in hydroelectricity, wind and solar PV energy. However, renewables continued to only
account for 2 per cent of total energy production.
Electricity generation
Total electricity generation in Australia has been gradually decreasing over the past few years (Figure
6), declining from 253 terawatt hours (around 911 petajoules) in 2010–11 to 249 terawatt hours
(897 petajoules) in 2012–13. This reflects lower demand for electricity, caused by increased energy
efficiency practices in residential and non-residential sectors, mild weather across much of Australia,
a reduction in industrial load, and consumer responses to higher retail electricity prices. Electricity
generation includes household rooftop solar PV generation, as well as off-grid generation.
In the states that are connected through the National Electricity Market (NEM), generation declined
by 1.3 per cent in 2012–13. However, this decline in NEM generation is partially offset by increased
generation in Western Australian (6 per cent growth) and Northern Territory (5 per cent growth),
associated with the continued expansion in off-grid generation in the mining sector. It is estimated
that off-grid electricity generation accounted for around 7 per cent of total generation in 2012–13.
Coal continues to be the major fuel source for electricity generation, comprising about 64 per cent of
the fuel mix in 2012–13 (Table 8). However, this share has decreased from 77 per cent in 2003–04,
accounting for much of the decline in total electricity generation. In 2012–13 coal-fired generation
declined across all states in Australia, with black and brown coal-fired generation dropping to their
lowest levels since 1997–98. This decline in 2012–13 is most likely due to the increase in the relative
costs of coal-fired electricity generation under carbon pricing. In contrast, natural gas-fired
generation continued to rise in 2012–13, supported by new capacity coming on line in Victoria.
While a relatively small share of the generation fuel mix, oil-fired generation increased significantly
in 2012–13, largely in Queensland and Western Australia and may be largely attributed to increased
demand for power in remote mining regions.
15
Figure 6: Australian electricity generation, by fuel type
a includes oil and multi-fuel fired power plants.
b includes wind, hydro, solar PV, bioenergy and geothermal.
Source: BREE 2014 Australian Energy Statistics, Table O.
Table 8: Australian electricity generation, by fuel type
Fossil fuels
Black coal
Brown coal
Gas
Oil
Other a
Renewable energy
Bioenergy
Wind
Hydro
Solar PV
Geothermal
Total
2012-13
GWh
share (%)
216 509
86.9
111 491
44.8
47 555
19.1
51 053
20.5
4 464
1.8
1 945
0.8
32 566
13.1
3 151
1.3
7 328
2.9
18 270
7.3
3 817
1.5
1
0.0
249 075
100
average annual growth
2012-13 (%)
10 years (%)
-3.4
0.3
-4.4
-0.9
-13.6
-1.7
5.1
5.7
65.2
13.9
78.8
0.8
26.2
6.2
3.5
6.4
19.9
29.7
29.7
1.3
49.2
56.4
0.0
0.0
-0.3
0.9
a includes multi-fuel fired power plants.
Source: BREE 2014 Australian Energy Statistics, Table O.
The share of renewables in Australian electricity generation has also risen from approximately 8 per
cent in 2003–04 to 13 per cent in 2012–13. The strong uptake of renewables has been driven by a
range of factors, including Australian and state government policies and programs. Wind and solar
PV continued to grow strongly, by 20 per cent and 49 per cent in 2012–13 (Figure 7). However, these
fuels accounted for only 3 per cent and 1.5 per cent of total electricity generation in Australia. Wind
generation was particularly prevalent in South Australia in 2012–13, making up 25 per cent of the
total fuel mix for that state.
Most of the growth in renewables was driven by hydro generation, which increased by 30 per cent in
2012–13, after lower water inflows in Australia’s southern regions caused a decline in 2011–12.
16
Figure 7: Australian electricity generation from renewable energy sources
Source: BREE 2014 Australian Energy Statistics, Table O.
17
4. Energy trade
Exports
Australia has long been a large and globally significant net energy exporter. Australia’s energy
exports grew by 14 per cent in 2012–13 in energy content terms, to reach 15 504 petajoules, which
is equal to around 80 per cent of total energy production. This strong growth was led by Australia’s
three largest energy exports: black coal, uranium oxide and liquefied natural gas (LNG) (Figure 8).
Figure 8: Australian energy exports, by fuel type
Source: BREE 2014, Australian Energy Statistics, Table J.
Black coal exports increased by more than 11 per cent in 2012–13 to reach 9 485 petajoules (around
336 million tonnes) (Table 9), as production rebounded at existing mines and ramped up at a
number of new projects completed in 2012. Coal exports have grown at 5 per cent a year over the
past decade as strong global demand (particularly from China) has stimulated investment in
numerous expansions and new mine and infrastructure capacity.
Uranium oxide exports increased by 21 per cent in 2012–13, to 3 944 petajoules (around 8 391
tonnes). This was largely due to the Ranger mine in the Northern Territory returning to full
production in the second half of 2012 following flooding earlier in the year. Despite recent growth,
uranium oxide exports have fallen over the last decade, mainly due to Japanese demand
plummeting following the Fukushima disaster in March 2011.
LNG exports increased by 27 per cent in 2012–13, and reached 1 303 petajoules (around 23.9 million
tonnes). The start-up of Pluto LNG in Western Australia in mid-2012 was mainly responsible for this
growth as it contributed around 220 petajoules (4.3 million tonnes) of additional production
capacity. A tight global LNG market combined with improved plant operations saw North West Shelf
(NWS) and Darwin LNG increase exports as well. Over the past decade, two new LNG trains built at
NWS (in 2004 and 2008), and the start-up of Darwin LNG in 2006 and Pluto in 2012 have been
responsible for sustained LNG export growth of 13 per cent a year.
In contrast, crude oil, naturally occurring LPG and refined product exports all fell in 2012–13. Crude
oil and LPG exports fell by 8 per cent to 648 petajoules (around 18 147 million litres), in line with
declining production from ageing fields. Australia’s domestic refining sector has also been under
mounting pressure from international competition. This has reduced Australian refineries’ ability to
18
find export markets for locally produced products as well as increasing competition in the domestic
market. Reflecting this, the Clyde oil refinery ceased operations in October 2012 and converted to an
import terminal. Refined product exports continued to fall in 2012–13 by 5 per cent to 125
petajoules (around 3 232 million litres).
Table 9: Australian energy exports, by fuel type
2012-13
PJ
share (%)
9 485
61.2
1 303
8.4
648
4.2
125
0.8
3 944
25.4
15 504
100
Black coal
Gas
Oil and LPG
Refined products
Uranium
Total
Source: BREE 2014, Australian Energy Statistics, Table J.
average annual growth
2012-13 (%)
10 years (%)
11.4
4.8
26.9
13.1
-7.7
-1.3
-5.4
-3.6
21.3
-0.9
13.8
3.1
Imports
Australia’s energy imports also grew in 2012–13, to reach 2 310 petajoules, a 5 per cent increase
from 2011–12 (Table 10). Crude oil and refined product imports continue to comprise the majority
of imported energy, with gas from the Joint Petroleum Development Area in the Timor Sea (which is
liquefied at Darwin before being re-exported) coming in third (Figure 9).
Figure 9: Australian energy imports, by fuel type
Source: BREE 2014, Australian Energy Statistics, Table J.
Imports of crude oil and refined products have been growing strongly in recent years. Expansion in
international refining capacity, particularly in Singapore, combined with growth in the mining and
transport sectors has seen Australian imports of automotive gasoline, diesel fuel and aviation
turbine fuel all grow strongly. As discussed above, ageing domestic refineries are finding it difficult to
compete with vast and more modern refineries in Asia that hold significant technological and
economies-of-scale benefits over Australian refineries. Total refined product imports increased by 8
per cent in 2012–13 to 880 petajoules (around 23 409 million litres). Around 39 per cent of
Australia’s consumption of refined products was met by imports in 2012–13, compared with only 11
per cent a decade ago.
19
Crude oil imports have also grown as refineries on the east coast of Australia increasingly use
imported oil from Asia, the Middle East and North Africa. Crude oil and LPG imports rose by 1 per
cent in 2012–13, to reach 1 185 petajoules (around 30 886 million litres). The relatively high
proportion of imports reflects that the majority of Australia’s oil production occurs off the North
West coast of Australia, so is mostly exported to the closer Asian refineries than to domestic
refineries. In addition, the crude oil grades produced in Australia are generally not as well suited for
use by Australian refineries as those from other major producing countries.
Table 10: Australian energy imports, by fuel type
2012-13
PJ
1 185
880
244
1
2 310
share (%)
51.3
38.1
10.6
0.1
100
Oil and LPG
Refined products
Gas
Coke
Total
Source: BREE 2014, Australian Energy Statistics, Table J.
average annual growth
2012-13 (%)
10 years (%)
1.3
2.7
8.4
10.2
12.1
9.7
11.6
5.0
6.6
20