The Australian Geothermal Energy Association (AGEA) recently independently assessed the business development plans of Australia's geothermal energy companies in order to estimate how much electricity generation capacity the Australian geothermal industry expects to deploy by 2020 and at what price. The industry is predominantly focused on producing electricity from Enhanced Geothermal Systems (EGS) or Hot Fractured Rocks (HFR) technology where the underground reservoir or heat exchanger is artificially created or enhanced by fracture stimulation techniques. The industry is also undertaking exploration and project development activity in more traditional geothermal or hydrothermal projects where hot underground reservoirs are utilised as heat exchangers for electricity production. It is well established that Australia has a globally significant resource relatively close to the earth's surface and that Australia is developing a global leadership position in the technical capability to exploit this resource.
Geothermal energy could supply as much as 5 percent of Australia's electricity requirements by 2020 with an investment of about A$12 billion ($10.4 billion), helping reduce greenhouse gas emissions, an industry group said.AGEA's views of the key findings of the report include:
Barely one per cent of Australia's untapped geothermal energy could produce 26,000 years worth of clean electricity, scientists said, as the government announced a A$50 million (US$43million) project to help develop the technology. Australia is the world's biggest coal exporter with coal used to generate about 77 per cent of its electricity. Its reliance on coal for generating electricity makes it the world's biggest per-person polluter, with five times more emissions per head than China. "Geothermal energy which is sometimes known as hot rocks has got a huge potential for Australia, both as a solution to climate change and in terms of national energy security," said resource minister Martin Ferguson.
Geothermal energy could supply as much as 5 percent of Australia's electricity requirements by 2020 with an investment of about A$12 billion ($10.4 billion), helping reduce greenhouse gas emissions, an industry group said.AGEA's views of the key findings of the report include:
- The emerging Australian Geothermal Energy Industry can be expected to provide at least 1,000 MW and potentially up to 2,200 MW of base-load capacity by 2020 into the National Electricity Market;
- That capacity potentially represents up to 40% of the Federal Government's 2020 Renewable Energy target of 45,000 GWh - the equivalent of the output of up to 6,000 MW of wind farms;
- An estimated $12b would be invested to develop 2,200 MW of installed capacity;
- The cost of generating electricity from geothermal resources is expected to move rapidly down the cost curve through to 2020 - through learning, experience and economies of scale outcomes commencing at around $120 /MWh at small scale (10 MW to 50 MW) and decreasing to around $80/MWh at large scale (300 MW or greater) by 2020;
- That price is expected to be lowest cost of any form of renewable energy;and
- Most of the capacity is expected to come from developments in SA with other states increasing their contribution toward the end of the 2020 period.
Barely one per cent of Australia's untapped geothermal energy could produce 26,000 years worth of clean electricity, scientists said, as the government announced a A$50 million (US$43million) project to help develop the technology. Australia is the world's biggest coal exporter with coal used to generate about 77 per cent of its electricity. Its reliance on coal for generating electricity makes it the world's biggest per-person polluter, with five times more emissions per head than China. "Geothermal energy which is sometimes known as hot rocks has got a huge potential for Australia, both as a solution to climate change and in terms of national energy security," said resource minister Martin Ferguson.
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