, Australia

Australia’s electricity demand up 3% YoY in 2022

Renewables dominated the new capacity additions during the period.

Electricity consumption in Australia rose by 3% year-on-year in 2022 following a relatively flat demand for two years, on the back of the growth of large industrial customers in Victoria and South Australia.

In a report, the International Energy Agency said consumption of electricity is expected to increase through 2025 by slightly over 2% annually on average.

Renewables also dominated the new capacity additions in the country, with over five gigawatts (GW) of new renewables which included over 4GW of solar.

“Growth in renewables is expected to continue at a similar pace out to 2025, supported by auctions to meet state-level targets and corporate purchasing,” the report read.

READ MORE: Australian solar company Vast merges with Nabors

“Renewable Energy Zones (REZ), or identified renewables-rich areas which are targeted for coordinated infrastructure development, are expected to enhance renewables deployment, and different states declared multiple zones in 2022 following the first zone announced in November 2021,” it added.

The share of generation from coal-fired plants also declined to 49% from 53% in 2021 as some coal-fired plants retired. The demand for coal was replaced by increases in renewable and gas-fired generation.

Renewables are expected to grow 12% annually, whilst gas-fired generation will remain stable until 2025. Carbon dioxide emissions and intensity will decline as renewables output rise amidst the closures of coal-fired power plants.

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