As our ageing, inefficient and polluting coal-fired power plants retire, we will need new electricity generation sources to ensure a vibrant, healthy and prosperous future for Australia. We have arrived at a fork in the road: there are two roads we can follow, leading to two very different futures.
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One leads to increasing reliance on gas for power, building new gas plants and drilling thousands more gas wells. Taking the gas route is a costly and dirty one. Here’s why.
Australians are feeling the pinch because of the liquefied natural gas export industry’s commitment to overseas markets at the expense of Australian households and business who are confronted by exorbitant gas power costs. This effect is exacerbated by increased reliance on more costly, unconventional sources of gas and a lack of competition in some gas power markets, driving electricity price spikes in states such as South Australia and Queensland.
But what of gas emissions? The industry claims gas power is cleaner than coal, as gas plants on average are said to emit around half the carbon dioxide per unit of electricity compared to coal plants. However, be sure to read the fine print, as these claimed emissions benefits of using gas may be cancelled out for a number of reasons. Power from some gas plants, such as Torrens Island in South Australia, is as polluting as power from a subcritical black coal plant. Additional reliance on such polluting power plants will not reduce emissions.
Also, gas power results in emissions beyond the power plant. Gas production emits methane – a potent greenhouse gas – through venting, equipment purging, incomplete combustion and a multitude of gas leaks. Incredibly, the full extent of methane emissions from unconventional gas production (such as coal seam gas) in Australia is largely unknown due to insufficient studies and field measurements. Field measurements in the US show that methane emissions from unconventional gas production are significantly higher than the default factors applied to determine gas emissions in Australia. This makes no sense.
New gas power plants planned and built from this point onwards would also continue operating (and emitting) well beyond 2050, when electricity emissions need to reach zero in line with limiting a temperature rise below 2oC. These power plants would either need to be closed well before their technical life dictates, or would place in jeopardy Australia’s ability to meet its Paris commitments. Even new gas plants would rely on decades old infrastructure – storage wells, processing plants and pipelines. Increasing our reliance on this infrastructure poses an increased risk of blowouts and failures.
If we are to tackle climate change, then we need to take the right path now – we can’t afford any more delays. There is a better road to take: moving directly to cost competitive, zero emissions power. Technologies such as solar thermal, hydro and biomass plants can generate electricity at all times of the day, as well as meet technical requirements such as “inertia” for grid stability. Low cost wind and solar photovoltaic power, combined with energy storage, can deliver 24/7 power without the associated fuel costs and emissions.
Australia is at a critical juncture. In one direction lies a dead end, with greater reliance on costly, polluting gas. In the other direction: cost competitive, zero emissions renewables. There’s too much at stake, we can’t afford any wrong turns.
Petra Stock is a climate and energy solutions analyst at the Climate Council.