Australia "Concerns Over Power Shortages Due to Slow Renewable Energy Transition and Coal Power Reduction"

Australian Coal Power Plant
Photo by Yonhap News

Australia's transition to renewable energy is progressing more slowly than expected, and as coal power plants rapidly disappear, there is a diagnosis that the country could face a severe power shortage.

According to Australia's AAP news agency on the 15th (local time), the Australian Energy Market Operator (AEMO), which manages and oversees the Australian electricity market, forecasts that 90% of coal power plants in Australia, currently with a total capacity of 21 gigawatts (GW), will be closed before 2035, and all coal power plants will shut down by 2038. To replace these closing coal power plants, the capacity of solar and wind power plants must be increased to 57 GW, three times the current level, by 2030. Furthermore, to achieve zero carbon emissions, this capacity must be expanded to 176 GW by 2050.

As electricity consumption by businesses and households continues to increase and solar and wind power cannot operate 24 hours a day, renewable energy power plants with a capacity larger than the disappearing coal power plants are needed. Additionally, to support the intermittent supply of renewable energy, 74 GW of energy storage systems, hydroelectric power, and gas power plants will be required by 2050, along with a new transmission network spanning 10,000 km to transport electricity generated by these new power plants.

AEMO assessed that building these facilities will require AUD 121 billion (approximately KRW 105.1 trillion) in present value. The problem is that this energy transition project is progressing more slowly than expected due to approval procedures, cost pressures, social issues, and labor shortages. AEMO cited the new transmission network installation project as an example, explaining that many residents refuse to have high-voltage power lines pass through their residential areas, so persuading or compensating them takes more time and money than anticipated.

It expressed concern, stating, "There is a real risk of facing a severe power shortage as aging coal-fired power plants disappear before sufficient generation capacity and transmission networks are established."

This content was produced with the assistance of AI translation services.