2013 Australian Energy Update July 2013 Nhu Che, Alex Feng, Caitlin McCluskey, Pam Pham, Tom Willcock and George Stanwix © Commonwealth of Australia 2013 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 Chief Economist, 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. Che, N., Feng, A., McCluskey, C., Pham, P., Willcock, T. and Stanwix, G. 2013, 2013 Australian Energy Update, BREE, Canberra, July. Excel tables should be cited as: BREE 2013, 2013 Australian Energy Statistics, BREE, Canberra, July. ISSN 1839-XXXX (Print) ISSN 978-1-921516-00-9 (Online) Postal address: Bureau of Resources and Energy Economics GPO Box 1564 Canberra ACT 2601 Australia Phone: +61 2 6276 1000 Email: info@bree.gov.au Web: www.bree.gov.au ii Acknowledgements The authors would like to express their appreciation for the assistance and support provided by Wayne Calder, Geoff Armitage, Bruce Wilson, Kate Martin, Martin Nguyen and colleagues from the Bureau of Resources and Energy Economics, Jeremy Ainscough of the Clean Energy Regulator, David Cosgrove and David Gargett of the Bureau of Infrastructure, Transport and Regional Economics and members of the Departments of Resources, Energy and Tourism and Innovation, Industry, Climate Change, Science, Research and Tertiary Education, and the Australian Bureau of Statistics. iii Foreword The Australian Energy Statistics is the authoritative and official source of energy data for Australia and forms the basis of Australia’s international reporting obligations. The dataset is updated annually and consists of detailed historical energy consumption, production and trade statistics compiled from various sources. The data covers the period 1973–74 to 2011–12. The published data are intended for a wide audience, including industry, government and the broader community, and to meet international requirements for compilation of energy balances. The statistics are especially significant at a time as we seek to identify opportunities to reduce carbon emissions and improve energy productivity in the Australian economy. The Australia Energy Update summarises and highlights the key results from the latest Australian Energy Statistics release. I encourage you to access and use the data available at www.bree.gov.au. Bruce Wilson A/g Executive Director July 2013 iv Contents Acknowledgements ................................................................................................................................. iii Foreword ................................................................................................................................................. iv Abbreviations and acronyms ................................................................................................................... vi Glossary .................................................................................................................................................. vii Conversions/Units ................................................................................................................................... ix 1. Summary ............................................................................................................................................... 1 2. Sources, methodology and coverage ................................................................................................... 2 3. Consumption ........................................................................................................................................ 5 4. Production and trade............................................................................................................................ 9 Appendix................................................................................................................................................. 13 Figures Figure 1: Australian energy consumption, by fuel type............................................................................ 5 Figure 2: Australian energy production, by fuel type ............................................................................... 9 Figure 3: Australian electricity generation, by fuel type ........................................................................ 10 Figure 4: Australian energy exports, by fuel type................................................................................... 11 Figure A1: Total primary energy supply ................................................................................................. 13 Figure A2: Total net energy consumption .............................................................................................. 14 Tables Table 1: NGERS reporting thresholds ....................................................................................................... 2 Table 2: 2013 Australian Energy Statistics Tables .................................................................................... 4 Table 3: Australian energy consumption, by fuel type ............................................................................. 6 Table 4: Australian renewable energy consumption, by fuel type ........................................................... 6 Table 5: Australian total final energy consumption, by industry ............................................................. 6 Table 6: Australian energy consumption, by state ................................................................................... 7 Table 7: Australian energy production, by fuel type .............................................................................. 10 Table 8: Australian electricity generation, by fuel type.......................................................................... 11 Table 9: Australian energy exports, by fuel type .................................................................................... 12 An accessibility version of the report and associated tables are located on the BREE website: bree.gov.au v Abbreviations and acronyms ABARES Australian Bureau of Agricultural and Resource Economics and Sciences ABS Australian Bureau of Statistics ADO Automotive diesel oil AES Australian Energy Statistics ANZSIC Australian and New Zealand Standard Industrial Classification BREE Bureau of Resources and Energy Economics CSG Coal seam gas DCCEE Department of Climate Change and Energy Efficiency FES Fuel and Electricity Survey GWh Gigawatt hours IDF Industrial diesel fuel IEA International Energy Agency FOE Fuel oil equivalent LNG Liquefied natural gas (principally methane) LPG Liquefied petroleum gas (principally propane and butane) NEM National electricity market NGERS National Greenhouse and Energy Reporting Scheme NGL Natural gas liquids ORF Other refinery feedstock PJ Petajoules PV Photovoltaic RET Department of Resources, Energy and Tourism SRES Small-scale Renewable Energy Scheme TFEC Total Final Energy Consumption TPES Total Primary Energy Supply vi Glossary Bagasse: Fibrous residue of the sugar cane milling process that is used as a fuel (to raise steam) in sugar mills. Biofuels: Liquid fuels produced by chemical conversion processes that result in the production of ethanol and biodiesel. Biogas: Landfill (garbage tips) gas and sewage gas. Also referred to as biomass gas. Black coal: Hard coal with high energy content. In Australia, anthracite, bituminous and subbituminous coals are referred to as black coal. Brown coal: Has a low energy and high ash content. It is unsuitable for export and is used to generate electricity in power stations located at or near the mine. Also referred to as Lignite. Coal by-product: By-products such as blast furnace gas (from iron and steel processing), coal tar and benzene/toluene/xylene (BTX) feedstock and coke oven gas (from the coke making process). Coal seam gas: Methane held within coal deposits, bonded to coal under the pressure of water. It may also contain small amounts of carbon dioxide and nitrogen. Also referred to as coal seam methane and coal bed methane. Included in Natural Gas in the AES tables. Coke: A porous solid composed mainly of carbon and ash which is used in blast furnaces that produce iron. Conversion: The process of transforming one form of energy into another (derived) form before final end use. Energy used in conversion is the energy content of fuels consumed as well as transformed by energy producing industries. Examples are gas and liquefied petroleum gas used in town gas manufacturing, all hydrocarbons used as feedstock in oil refineries, and all fuels (including electricity) used in power stations—therefore, energy used in conversion also includes energy lost in the production, conversion and transport of fuels (such as energy lost in coke production) plus net energy consumed by pumped storage after allowance for the energy produced. Crude oil: Naturally occurring mixture of liquid hydrocarbons under normal temperature and pressure. Condensate: Hydrocarbons recovered from the natural gas stream that are liquid under normal temperature and pressure. Domestic availability: Total energy available for consumption within the economy. This measure can be compared with total primary energy supply (TPES). Liquid fuels: All liquid hydrocarbons, including crude oil, condensate, liquefied petroleum gas and other refined petroleum products, and liquid biofuels. Natural gas: Methane that has been processed to remove impurities to a required standard for consumer use. It may contain small amounts of ethane, propane, carbon dioxide and inert gases such as nitrogen. In Australia, natural gas comes from conventional gas and coal seam gas. Also referred to as sales gas in some sectors of the gas industry. Natural gas liquids: Derived from the natural gas stream in separation and/or liquefaction facilities, excludes Methane. Non-renewable resources: Resources, such as fossil fuels (crude oil, gas, coal) and uranium that are depleted by extraction. vii Petajoule: The joule is the standard unit of energy in general scientific applications. One joule is the equivalent of one watt of power radiated or dissipated for one second. One petajoule, or 278 gigawatt hours, is the heat energy content of about 43 000 tonnes of black coal or 29 million litres of petrol. Petroleum: Generic term for all hydrocarbon oils and gases, including refined petroleum products. Petroleum products: All hydrocarbons used directly as fuel. These include liquefied petroleum gas, refined products used as fuels (aviation gasoline, automotive gasoline, power kerosene, aviation turbine fuel, lighting kerosene, heating oil, automotive diesel oil, industrial diesel fuel, fuel oil, refinery fuel and naphtha) and refined products used in nonfuel applications (solvents, lubricants, bitumen, waxes, petroleum coke for anode production and specialised feedstocks). Included in oil aggregates in the AES tables. Primary production: The forms of energy obtained directly from nature, involving only the extraction or collection of the energy source. They include non-renewable energy sources such as coal, uranium, crude oil and condensate, naturally occurring liquefied petroleum gas, ethane and methane, and renewable energy sources such as wood, bagasse, landfill gas, hydroelectricity, wind energy, solar energy and geothermal energy. Also referred to as indigenous production. Renewable resources: Resources that can be replenished at a rate equal or greater than the rate of depletion, such as biomass, hydro, solar, wind, ocean and geothermal. Secondary fuels: The forms of energy that result from transforming primary fuels. They include electricity, petroleum products, LPG produced in refineries and liquid biofuels produced through the transformation of agricultural or waste feedstocks. Also referred to as derived fuels produced. Solar energy: Generated when energy from the sun is converted into electricity or used to heat air, water and other fluids. Total final energy consumption: The total amount of energy consumed in the final or end-use sectors. It is equal to total primary energy supply less energy consumed or lost in conversion, transmission and distribution. Total net energy consumption: A measure of the total energy used within the economy. At an aggregate level, total net energy consumption is equivalent to total primary energy supply. Total primary energy supply: A measure of the total energy supplied within the economy. It is equal to indigenous production plus imports minus exports, plus stock changes and statistical discrepancies. It includes the supply of both primary and secondary fuels. Uranium: a mildly radioactive element that once mined is processed into uranium oxide (U3O8). viii Conversions/Units Metric units Standard metric prefixes J joule k kilo 103 (thousand) L litre M mega 106 (million) t tonne G giga 109 (billion) g gram T tera 1012 Wh watt-hours P peta 1015 b billion (1000 million) E exa 1018 Standard conversions 1 barrel = 158.987 L 1 mtoe (million tonnes of oil equivalent) = 41.868 PJ 1 kWh = 3600 kJ 1 MBTU (million British thermal units) = 1055 MJ 1 m3 (cubic metre) = 35.515 f3 (cubic feet) 1 L LPG (liquefied petroleum gas) = 0.254 m3 natural gas Conversion factors are at a temperature of 15°C and pressure of 1 atmosphere. Indicative energy content conversion factors Black coal production 30 GJ/t Brown coal 9.8 GJ/t Crude oil production 37 MJ/L Naturally occurring LPG 26.5 MJ/L LNG exports 54.4 GJ/t Natural gas (gaseous production equivalent) 40 MJ/kL Biomass 11.9 GJ/t Hydroelectricity, wind and solar energy 3.6 TJ/GWh ix 1. Summary The 2013 Australian Energy Update outlines some of the major trends observed in the 2013 Australian Energy Statistics, the authoritative and official source of energy data for Australia. The 2013 Australian Energy Statistics includes historical revisions back to 2002–03 that incorporate improved information from the National Greenhouse and Energy Reporting Scheme and the addition of data for 2011–12. Key trends in the 2013 report include: Total primary energy supply, the equivalent of total energy consumption, increased by 2 per cent, relative to 2010-11, to total 6 194 petajoules in 2011-12. This contrasts with a 3 per cent growth reported in the previous period. This result was mainly driven by strong growth in energy use in the commercial and services sector and modest growth in the transport, mining, agricultural and residential sectors. Energy consumption in manufacturing and construction, however, decreased in 2011-12 relative to 2010-11. Fuel use patterns continued to change with strong growth in the use of natural gas (4 per cent) and oil products (8 per cent) while coal consumption fell by 5 per cent in energy content terms. The fall in coal use was primarily due to a large decrease in consumption in the iron and steel making sector. In 2011-12 consumption of renewable energy declined by 7 per cent, relative to 2010-11, largely due to a fall in hydro energy consumption associated with lower hydroelectricity output in southeast Australia due to reduced water in-flows. Reduced hydro energy consumption more than offset the very strong growth observed in wind and solar energy. Total energy production (which includes energy exports) in 2011–12 increased by 5 per cent, relative to 2010-11, to total 17 460 petajoules, reflecting strong growth in natural gas (8 per cent), black and brown coal (5 and 6 per cent) and uranium (6 per cent) production. Production of crude oil and liquefied petroleum gas fell 6 per cent, and renewable energy decreased by 7 per cent in 2011–12 compared to 2010–11. Total electricity generation increased slightly relative to 2010-11, to about 253 851 gigawatt hours in 2011–12 with the decline in hydro generation being met by increased generation from black coal and other renewable energy sources, notably biogas, bagasse, solar and wind. Total gas consumption in electricity generation was effectively stable. In energy content terms, Australia’s energy exports increased by 5 per cent in 2011-12 relative to 2010-11, to 13 986 petajoules after the fall seen in the previous period due to the impact of natural disasters. This return to growth was driven largely by rebounding exports of uranium oxide and black coal which increased by 8 and 6 per cent, respectively. 1 2. Sources, methodology and coverage The Australian Energy Statistics (AES) is the main official source of energy data for Australia and forms the basis of Australia’s international reporting obligations. The primary source of information for the AES is data compiled under the National Greenhouse and Energy Reporting Scheme (NGERS). NGERS provides a data set covering the production and consumption of fuels across the main energy consumers and producers in a number of sectors, spanning from primary production, through transformation, to final use. For large, energy-intensive sectors, including mining and non-ferrous metals, there is almost complete coverage of the production and consumption of energy. Under the National Greenhouse and Energy Reporting Act 2007, businesses that consume and/or produce more than a minimum level of energy are subject to mandatory reporting requirements. These thresholds are designed to include all large energy consuming entities to ensure the majority of Australia’s energy consumption and production is covered (see table 1). Small and medium businesses with energy consumption or production less than these thresholds are excluded from the NGERS dataset. Table 1: NGERS reporting thresholds Year Emissions Energy Controlling corporations a 2008–09 125 000 tonnes carbon dioxide equivalent 500 terajoules consumption/production 2009–10 87 500 tonnes carbon dioxide equivalent 350 terajoules consumption/production From 2010–11 50 000 tonnes carbon dioxide equivalent 200 terajoules consumption/production 25 000 tonnes carbon dioxide equivalent 100 terajoules consumption/production Facilities b All years Source: Department of Climate Change and Energy Efficiency a If a business breaks the controlling corporation threshold it must report its energy consumption, production and/or emissions data for each facility under its control. b If a business does not break the controlling corporation threshold, but one of the facilities under its control breaks the facility threshold, that business is only required to report for that facility. Prior to the introduction of NGERS in 2011, the Fuel and Electricity Survey (FES) compiled by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) was the primary data source for the AES. The FES was a nationwide annual survey of around 1 400 large energy users and producers on the quantity of fuels and electricity they produced and consumed. The survey respondents represented around 60 per cent of total Australian energy consumption. The FES ceased following the establishment of NGERS to reduce the reporting required by businesses. The change from FES to NGERS as the primary source of data should result in a more accurate representation of energy consumption in Australia through the AES. Mandatory NGERS reporting for entities consuming more than a defined threshold of energy should improve the estimates of energy use for many industries that the FES was unable to adequately survey. The use of NGERS as the primary information source has allowed for the identification of series that require revisions to improve the accuracy of the AES. For the 2013 update, historical data was revised back to 2002–03 to incorporate improved information from NGERS and the APS. Further information on NGERS can be found at www.cleanenergyregulator.gov.au In developing the AES, information from other Australian Government agencies, state-based agencies, industry associations and publicly available company reports is also drawn on to supplement and/or validate NGERS data. These sources include trade data from the Australian Bureau of Statistics (ABS), the Bureau of Resources and Energy Economics’ (BREE) commodity database and the Australian Petroleum Statistics (APS). 2 The AES is developed through the process of balancing energy consumption, production and trade, by fuel type, sector and region. The energy balance provides a method of reporting energy data using a common unit with products aggregated by category. The method enables comparison of the shares of each fuel source in the energy supply chain and in each sector of economic activity. The AES provides detailed energy consumption and production statistics, by state and by fuel, at an industry-specific level. The most detailed sub-sectoral coverage is provided in the energy-intensive manufacturing sectors and for Australia as a whole. In some cases, particularly at the state level, specific industry detail is not able to be released for confidentiality reasons. 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). For example, production is categorised into primary production (raw materials) and total primary energy supply which incorporates refining, electricity generation and trade activities (see Appendix for a more detailed discussion). In addition, the consumption of energy commodities is assigned to the activity not the ‘industry of ownership’. For example the consumption of fuel in a residential vehicle is treated as a transport activity in the AES, while industry-based approaches such as the ABS Energy Accounts (catalogue no. 4604.0) would assign this use to the residential sector. In order to better represent energy flows throughout the economy, the AES has traditionally used a modified form of the Australian and New Zealand Standard Industrial Classification (ANZSIC) codes introduced in 1993.This modified classification structure contained additional classes in some industries and assumed aggregated energy use in others where appropriate. To ensure consistency with NGERS, 2006 ANZSIC codes were introduced in the 2011 edition of the AES. Where the 1993 ANZSIC codes did not directly correspond with the 2006 codes, either the AES or NGER industry structure was adjusted by aggregating industries or existing data was transferred between codes to maintain comparability between datasets. Most changes enforced by the 2006 ANZSIC codes take place within the aggregated commercial and services sector, which do not materially affect the AES. As in the past, a modified ANZSIC classification structure has been used, to best reflect the nature of energy flows and maintain consistency with international energy statistics conventions. 3 The AES consists of the following 15 tables which can be accessed at: bree.gov.au Table 2: 2013 Australian Energy Statistics Tables Table A Australian energy supply and consumption, 2002–03 to 2011–12, energy units Table B Total final energy consumption and total net energy consumption in Australia, by industry, energy units Total final energy consumption and total net energy consumption in Australia, by fuel, energy units Table C Table D Australian consumption of coal, by state, physical units Table E Australian consumption of natural gas, by state, physical units Table F Australian energy consumption, by industry and fuel type, energy units Table G Australian energy consumption, physical units Table H Australian production of primary fuels, physical units Table I Australian consumption of electricity, by state, physical units Table J Australian energy supply and trade, by fuel type, energy units Table K Australian consumption of petroleum products, physical units Table L Australian petroleum supply and disposal, energy units Table M Australian energy imports, by fuel type, physical units Table N Australian energy exports, by fuel type, physical units Table O Australian electricity generation, by fuel type, physical units Excel tables should be cited as: BREE 2013, 2013 Australian Energy Statistics, BREE, Canberra, July. 4 3. Energy consumption Energy consumption measures the total amount of energy used within the Australian economy. This is calculated from indigenous production plus imports less exports (and changes in stocks). For statistical purposes it is also equivalent to total primary energy supply (and can also be called net energy consumption). This report also identifies total final energy consumption which measures energy consumed by enduse activity (i.e. excluding conversion and transmission/distribution losses). 1 In 2011–12, Australian energy consumption is estimated to have increased by 2 per cent, relative to 2010-11, to total 6 194 petajoules (figure 1). In terms of primary fuels, black and brown coal together accounted for 34 per cent of total consumption, its lowest relative contribution since the early 1970s. This decrease was primarily driven by falling coal use in the iron and steel sector and, over the past 5 years, substitution away from coal in the electricity generation sector (table 3). Figure 1: Australian energy consumption, by fuel type Source: 2013 AES Table C. Petroleum based products, including crude oil, diesel, and liquefied petroleum gas (LPG), contributed 39 per cent of total energy consumed in 2011–12 and was a significant contributor to the growth in overall energy consumption. Substantial increases in consumption of petroleum products in the mining, petroleum refining, and transport, postal and warehousing sectors accounted for the majority of this increase. Gas comprised around 23 per cent of consumption in 2011-12 and increased by 4 per cent from 201011. This was largely driven by growth in the non-ferrous metals and manufacturing sectors. Over the past 5 years the electricity generation sector has also provided considerable growth in gas demand because of its greater flexibility as a fast start balancing and peak demand generation technology as well as a lower emissions intensity generation source. 1 Appendix provides further explanation of statistical definitions of energy consumption and supply. 5 Table 3: Australian total primary energy consumption, by fuel type PJ growth % share % 2011-12 2 118 2010-11 to 2011-12 -4.7 5 year average annual growth -2.3 34.2 Oil 2 411 8.5 10.6 38.9 Gas 1 399 4.2 1.2 22.6 265 -7.3 -2.8 4.3 6 194 2.0 2.7 100 Coal Renewables Total Source: 2013 AES Table C. Renewable energy consumption remained at around 4 per cent of total energy consumption in 2011–12, despite a 7 per cent fall compared to 2010-11. Among the renewable energy sources, solar energy demonstrated the fastest growth increasing by 20 per cent from 2010-11 to 2011–12, albeit from a relatively low base (table 4). This was partly driven by the improving cost-attractiveness of household solar systems along with supportive government programs at both the national and state levels, including the small-scale renewable energy scheme (SRES. Similarly, supportive policy settings saw wind energy consumption increase by 5 per cent in 2011-12 relative to 2010-11. Table 4: Australian renewable energy consumption, by fuel type PJ growth % 2011-12 2010-11 to 2011-12 165 11 51 22 17 265 -0.9 -55.7 -16.2 5.3 19.9 -7.3 Biomass Biogas/biofuels Hydro Wind Solar Total Source: 2013 AES Table A. In 2011–12 hydro energy consumption fell by 16 per cent, relative to 2010-11, largely associated with lower hydroelectricity output in southeast Australia due to reduced water in-flows compared to the previous year when above average water inflows were recorded. Consumption of biomass, including wood and bagasse, fell marginally by 1 per cent in 2011–12. Lower sugar production reduced the availability of inputs for energy consumption. In addition, a strong decline in biomass use by the food, beverages and textile industry was associated with falling bagasse process heat exploitation. Australia’s total final energy consumption (TFEC), which includes consumption of secondary fuels, is estimated to have increased by 0.5 per cent, relative to 2010-11, to 3 963 petajoules in 2011–12 (table 5). The strongest growth was in the commercial sector; increasing by around 9 per cent to 311 petajoules in 2011-12 compared to 2010-11. Further support was provided by a 2 per cent increase in energy consumption in both the transport sector and the mining sector. Final energy consumption in the agriculture and residential sectors increased only slightly. Table 5: Australian total final energy consumption, by industry PJ 6 growth % share % Agriculture Mining Manufacturing and construction Transport Commercial Residential Other Total 2011-12 2010-11 to 2011-12 2011-12 95.8 536.2 995.2 1512.4 311.2 453.2 58.5 3962.5 1.5 1.7 -3.9 2.0 8.8 0.3 -11.4 0.5 2.4 13.5 25.1 38.2 7.9 11.4 1.5 100 Source: 2013 AES Table B. Total final energy consumption (TFEC) in the manufacturing and construction sectors and the other2 sector decreased by approximately 4 and 11 per cent respectively, in 2011–12 compared to 2010-11. Within manufacturing and construction, a large decrease in the iron and steel industry (of around 66 petajoules) offset increases in consumption in the petroleum refining and non-ferrous metals industries. As is the case nationally, energy consumption across Australia’s states and territories largely reflects the economic structure of each region. A continuing shift in the composition of Australian industry from energy-intensive manufacturing to less energy-intensive services over several decades, combined with the rising energy requirements associated with the mining boom, is changing the pattern of regional energy consumption. In 2011–12 total energy consumption increased in Queensland by 4 per cent, driven by growth in the electricity generation; the Northern Territory increased by 3 per cent, due to growth in the gas production and distribution sector; and Western Australia increased marginally by 1 per cent, driven by the transport sector, relative to 2010-11. Victorian and Tasmanian total energy consumption increased more strongly, by 5 and 3 per cent respectively, between 2010-11 and 2011-12. In Tasmania this growth was driven by the manufacturing and commercial and services sectors. In Victoria, manufacturing, electricity generation, commercial and transport sector growth more than offset lower consumption in the residential and other sectors. Total energy consumption grew only marginally in South Australia and decreased by around 1 per cent in New South Wales. In South Australia, increases in the manufacturing, transport and residential sectors slightly offset a large fall in the electricity generation sector. In New South Wales falling use by the manufacturing sector was the primary cause of decreasing energy consumption and offset small growth in the mining, transport and commercial sectors. Table 6: Australian energy consumption, by state PJ growth % share % 2011-12 2010-11 to 2011-12 2011-12 New South Wales Victoria 1 652 1 547 -1.2 4.8 26.7 25.0 Queensland 1 353 3.5 21.8 2 Other includes consumption of lubricants and greases, bitumen and solvents, as well as energy consumption in the gas production and distribution industries. 7 South Australia Western Australia Tasmania Northern Territory Total Source: 2013 AES Table B. 8 391 1 015 0.6 1.3 6.3 16.4 114 3.2 1.8 124 6 194 3.4 2.0 2.0 100 4. Energy production and trade Energy production is defined as the total amount energy produced in the Australian economy for all purposes. This includes energy produced for consumption, export and transformation and distribution. In 2011–12, Australia produced 17 460 petajoules of primary energy, almost three times Australia’s total energy consumption and an increase of around 5 per cent relative to 2010–11. This pattern reflects the relative size of Australia’s energy exports compared with domestic use. The growth in primary energy productions was primarily due to rebounding coal and uranium production in Queensland and the Northern Territory. Increasing gas production also more than offset a small fall in renewable energy and oil and LPG production (figure 2). Figure 2: Australian energy production, by fuel type Source: 2013 AES Table J. The largest increase in energy production came from black coal, which increased by 5 per cent in 2011–12, primarily because of resumed operations at flood affected facilities in Queensland (table 7). The energy associated with the combined production of Australian crude oil, condensate and LPG declined by 6 per cent relative to 2010-11. This largely reflected declining production at maturing fields in the Bass Strait. The increase in gas production was largely a result of increases in natural gas extraction from coal seams in Eastern Australia and conventional sources in Western Australia. Increased uranium oxide output primarily reflected returning production at flood affected facilities in the Northern Territory. Renewable energy currently accounts for about 2 per cent, or around 265 petajoules, of primary production in Australia. Bioenergy sources such as wood, bagasse and biogas account for most renewable energy produced in Australia, followed by hydro, wind and solar. In 2011–12, renewable energy decreased by 7 per cent as lower production of bio- and hydro-energy more than offset higher production from solar and wind energy. 9 Table 7: Australian energy production, by fuel type PJ 2011-12 Black coal Brown coal Oil and LPG Gas Uranium oxide Renewables Total 9 672 735 994 2 270 3 525 265 17 460 growth% 2010-11 to 5 year average 2011-12 annual growth 5.3 2.4 5.7 0.6 -6.2 -1.4 8.4 8.3 6.1 -9.3 -7.3 -2.8 4.9 -0.3 share % 55.4 4.2 5.7 13.0 20.2 1.5 100 Source: 2013 AES Table J. In 2011–12, Australian electricity generation increased by around 0.5 per cent from 2010-11 to 254 000 gigawatt hours (or around 914 petajoules) with increases occurring in coal, wind and solar generation (figure 3). Decreased hydro generation, due to lower water inflows in Australia’s southern regions, was the only renewable energy resource to provide less electricity to the energy mix. While generation in the National Electricity Market (NEM) has been marginally declining since 2008– 09, off-grid generation, largely supported by growth in the mining sector, has been increasing rapidly. Factors moderating growth in total electricity generation include reduced demand arising from rising retail electricity prices and milder weather, as well as long-term structural changes in the economy. Figure 3: Australian electricity generation, by fuel type a includes wind, hydro, solar PV and bioenergy. b includes multi-fuel power plants. Source: 2013 AES Table O. 10 Electricity generation from renewable sources including wind, hydro and solar has increased rapidly over the last five years (table 8). In particular, estimated electricity generation from solar and wind increased substantially, by 95 and 20 per cent, respectively. Despite this medium-term growth, falling hydro generation in 2011-12 more than offset increasing generation from other renewable sources. The strong growth in solar energy was largely a result of government policies that encouraged the increased uptake of solar PV in the residential sector. Table 8: Australian electricity generation, by fuel type GWh 2011-12 Fossil fuels Black coal Brown coal Gas Oil Other a Renewable energy Bioenergy Wind Hydro Solar PV Total growth % 2010-11 to 5 year average 2011-12 annual growth share % 120 302 55 060 48 892 3 070 2 500 2.9 -0.4 -0.2 -0.8 -8.0 -2.3 -0.2 9.8 -10.5 83.0 47.4 21.7 19.3 1.2 1.0 2 343 6 113 14 083 1 489 253 851 11.5 5.3 -16.2 75.1 0.5 -15.1 19.5 6.8 95.2 1.0 0.9 2.4 5.5 0.6 100 a Includes multi-fuel fired power plants Source: 2013 AES Table O. Australia’s exports of energy commodities increased by 5 per cent in energy content terms to total 13 986 petajoules in 2011–12, relative to 2010-11 (figure 4). This was largely a result of increased exports of black coal and uranium oxide as production rebounded following weather-related interruptions in 2010-11 (table 9). In energy content terms, coal accounted for 61 per cent (8 516 petajoules) of Australia’s energy exports in 2011–12 while uranium accounted for around one-quarter (3 525 petajoules). Given the large share of these two commodities in energy content terms, any changes in export volumes have a large effect on Australia’s total energy export volumes. Figure 4: Australian energy exports, by fuel type Source: 2013 AES Table J. 11 Liquefied Natural Gas (LNG) exports decreased slightly in 2011-12 relative to 2010-11 due to maintenance at exporting facilities in Western Australia and the Northern Territory. Despite this, LNG exports have been growing strongly over the past five years, by around 10 per cent on average per year. This is projected to dramatically increase in coming years as new LNG projects ramp up to full production rates. Table 9: Australian energy exports, by fuel type PJ 2011-12 Black coal Natural gas Uranium oxide Oil and LPG Refined petroleum products Total 8 516 1 048 3 525 768 129 13 986 growth % 2010-11 to 5 year average 2011-12 annual growth 5.8 4.3 -3.5 9.9 7.9 -9.3 -3.2 4.6 13.7 -3.6 5.1 0.3 share % 60.9 7.5 25.2 5.5 0.9 100 Source: 2013 AES Table J. Australia is a net importer of liquid hydrocarbons, notably crude oil and most petroleum products. In 2011–12, Australia exported around 897 petajoules of liquid fuels (including oil, LPG and refined products, but excluding LNG) and imported around 1 961 petajoules. Net imports of liquid fuels increased by 3 per cent (from 2010-11 to 2011-12) as imports grew at a faster pace than exports, primarily due to growing demand for transport diesel oil in the mining sector. 12 Appendix Energy statistics definitions In the past, statistics for energy use at the end-use stage, or final energy consumption, have included some conversion activities in the sector in which they occur. For example, electricity generated in the mining sector has historically been included in the mining sector, resulting in some overestimation of final energy consumption. In the energy balances, this was referred to as ‘gross final energy disposal’ to reflect the inclusion of some conversion activities. As explained above, the AES definitions were changed in 2011 for the use of energy at the end-use stage to be in line with the International Energy Agency (IEA) definition for TFEC. The IEA framework requires that conversion activities that occur within industry sectors be moved to the conversion sector in the energy statistics. In the new energy balances, all conversion activities have been transferred to the conversion sector, so it is possible to present TFEC instead of the previous ‘gross final energy disposal’. Conversion activities that have been transferred to the conversion sector include electricity generation (previously included in the sector in which it occurred), LNG manufacturing (previously included in the mining end-use sector) and some chemicals manufacturing (for example, petroleum refining, which occurs in the chemicals sector). To better align the AES with the framework used by the IEA a number of new definitions were introduced. The energy statistics definitions that are now used in the AES are detailed below. Primary fuels: The forms of energy obtained directly from nature, involving only the extraction or collection of the energy source. They include non-renewable fuels such as coal, ethane and methane, crude oil and condensate, naturally occurring liquefied petroleum gas (LPG) and uranium; and renewable fuels such as wood, bagasse, landfill gas, hydroelectricity, wind energy and solar energy. Secondary fuels: The forms of energy that result from transforming primary fuels. They include electricity, petroleum products, LPG produced in refineries and liquid biofuels produced through the transformation of agricultural or waste feedstocks. Total primary energy supply (TPES): A measure of the total energy supplied within the economy. It is equal to indigenous production plus imports minus exports, plus stock changes and statistical discrepancies. TPES includes both primary and secondary fuels (figure A1). Figure A1: Total primary energy supply Total net energy consumption: A measure of the total energy used within the economy. At an aggregate level, total net energy consumption is equivalent to total primary energy supply. It is equal to consumption of all fuels minus the derived fuels produced within the economy, which is equivalent to the total consumption of primary fuels in both the conversion and end-use sectors plus net imports of transformed fuels. 13 It includes fuel inputs in conversion activities—notably the consumption of fuels used to produce petroleum products and electricity—and own use and losses in the conversion sector. It also includes the consumption of transformed fuels, such as refined petroleum products, that are not produced domestically. It does not include secondary fuels that are produced domestically, such as coke, coal by-products and petroleum products, as the energy embodied in these fuels is already accounted for in the primary fuels that they are produced from (figure A2). Figure A2: Total net energy consumption Total final energy consumption (TFEC): The total energy consumed in the final or end-use sectors. It is equal to TPES less energy consumed or lost in conversion, transmission and distribution. 14