5 steps towards Australia’s energy security

Australia is one of the world's economic success stories. By capitalising on its advantages - a skilled workforce, a growing population, and rich natural resources - Australia helped to power global growth while also propelling its own upward momentum. Yet as the race to net zero heats up, the country must now draw upon those same advantages to transition towards a cleaner, greener future. Not only will this secure Australia's green energy ambitions, but it will also play a critical part in achieving net zero globally. As an exporter of natural resources key to the development of renewable energy components such as batteries, the sustainability of the country's domestic energy sector has a disproportionate impact on sustainability worldwide. If Australia can transition to renewables while maintaining its industrial output, it can ensure that its impressive economic growth is translated into sustainable success.

Sustainability is the goal driving global action towards net zero. Yet reliability, resilience, and adaptability are critical, too - not least because they safeguard clean energy from a range of risks. Exploiting renewables, therefore, goes hand in hand with expanding energy storage, growing the grid, and embedding resilience through integrated planning. It’s challenging, but by considering these factors holistically, Australia can progress towards energy security, without stumbling upon the obstacles along the way.

1) Exploit renewables by adding storage

Renewables are crucial, but so is storage capacity. If one outpaces the other, we risk losing momentum or compromising on reliability. Energy storage enables the grid to handle a higher penetration of renewable energy sources by balancing supply and demand in real-time. This is essential for Australia, especially given its ambitious renewable energy targets and significant investments in solar and wind projects. By smoothing out the variability of renewables, storage solutions allow for a greater proportion of Australia’s energy mix to come from clean sources, reducing dependence on fossil fuels. Prioritising energy storage solutions like pumped hydro can therefore speed up the transition to net zero.

2) Grow the grid

To bring Australia’s renewables online, it’s estimated that 14,000km of additional transmission is needed. This is a major expansion. The largest interconnected system, the National Electricity Market (NEM) which serves eastern and southern Australia and Tasmania, is already one of the world's longest interconnected power systems at over 5,000km. High capital investment and the threat of regulatory approval delays could derail Australia’s progress towards clean energy. Sustainable growth must be carefully planned and managed in tandem with new projects, to reduce the risk of bottlenecks and sub-optimal design. But there are also opportunities. Remote communities, which often depend upon diesel generators for power, could potentially be connected to the grid, increasing renewable penetration.

3) Think holistically to promote resilience

A resilient grid is about much more than clean energy. It’s balancing intermittent with baseload power. It’s designing and connecting energy infrastructure in ways that strengthen the systems’ integrity. And it’s informing energy projects with the data and insights from wider society, to enable far-sighted decisions that reduce the risk of energy vulnerability. Opportunities for cross-sector linkages between electricity, heating, cooling, and transportation sectors can enable greater efficiencies. For instance, excess heat from industrial processes can be used for district heating, while electric vehicles can offer grid storage capabilities. A holistic approach fosters resilience by creating a more adaptable, reliable, and sustainable energy system. But it needs policy and regulatory frameworks to encourage innovation, investment in clean energy, and infrastructure modernization.

4) Integration through data

Energy systems are optimised when each component contributes to the whole. Poor integration is especially risky during energy transition. If the grid has not been sufficiently upgraded, for example, transporting excess electricity to industrial or urban areas may be unviable. Curtailment, where renewable energy sources are temporarily shut down to prevent grid overload, is the inevitable and wasteful result. Holistic planning that considers grid capacity, energy storage, regional disparities, and socioeconomic factors can overcome these problems, but can only be enabled through data. Combining data analytics, AI, and machine learning enables predictive maintenance and operation optimization, identifying potential system failures before they occur and allowing for preventative measures. Using technology to support the early detection of vulnerabilities reduces downtime and maintains continuous energy supply, optimising the energy system as a whole.

5) Look overseas to lead

Even if Australia fully exploits its renewables potential and achieves near-independence in energy, the overseas markets will still be an important factor. Australia's abundant renewable energy sources could potentially translate into generating excess renewable energy; exporting this surplus presents a strategic opportunity to bolster the country's energy economy, support global decarbonization efforts, and enhance energy security in the Asia-Pacific region. Moreover, nascent sources of power may struggle to reach maturity without the economies of scale that only global energy markets can provide. Hydrogen offers a good example. As hydrogen can be transported as a gas or liquid to other countries, or converted into ammonia for easier handling, it is viable for export. The promise of overseas markets can help to offset the high initial investment, incentivising private enterprises to shoulder the hefty capital expenditure and risk associated with developing the infrastructure, business plan, and routes to market for green hydrogen.

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