Australia's Electricity Market Sees Sea Change in Electricity Demand in Past Four Years

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Researched by Industrial Info Resources India (Perth, Australia)--The electricity market in Australia has seen a drop in demand and consumption over the last four years. In the last three years, consumption by Australian households fell 12% when compared with 2011. The value of energy saved in Australia in 2013 alone contributed to AUD$3.2 billion, of which approximately AUD$2.7 billion was saved by households. The major factors that contributed to this decrease are an increase in household rooftop photovoltaic (PV) installations, energy-efficiency initiatives, and increasing electricity prices.

The overall electricity consumption has decreased significantly over 2011 and 2012, while the value of the electricity used increased 43% over the same period, with an increase of total primary energy consumption of only 1% in the same period.

According to Australian Energy Market Operator (AEMO), the electricity market in the country will not see a considerable growth rate in demand over the next decade, with a forecast growth of 1.3% per annum. As per the latest trends and reports, there is no requirement for any major power plant in the country, which is affecting the majority of the existing natural gas power projects, in addition to already-affected coal-fired power plants that are in various phases of development.

The quantity of coal utilized during the last two years declined 2%, while the total cost of electricity generated using coal increased 6%, which signifies the huge costs associated with coal-fired generation.

Households and the manufacturing industry were the two largest electricity users, with households using 24% of all electricity and contributing 40% of the total value of electricity use. With most of the major liquefied natural gas (LNG) plants utilizing a considerable amount of electricity that is to be brought online in the next two to three years, there will be a further decrease in the overall consumption of electricity in Australia, especially in the eastern states

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