An Australian energy giant has admitted that the world is in a bubble, that demand for electricity has outstripped supply, and that prices are so high that Australians are feeling the pinch.
The Australian Energy Regulator (AER) admitted in its annual report that the number of electricity customers in the country was rising by about 12 per cent annually, from 4.2 million to 5.9 million, but said the boom in renewable energy had made up for the shortfall.
“Demand growth is outpacing supply growth and is on track to reach 5.1 million households by 2020,” the AER said.
But the real number is more like 7.7 million households.
The AER, which is a government-owned body, said that the growth in demand was due to a combination of factors, including the fact that the cost of renewables was falling, and because of the increasing number of homes and businesses that were adding solar panels, wind turbines and water storage to their roofs.
“We believe that a significant portion of the growth is due to the expansion of renewable energy systems, particularly the recent expansion of rooftop solar,” the report said.
“The AED expects demand growth to remain high over the next three to four years.””
The additional demand is also partly due to increased demand for energy storage.
“The AED expects demand growth to remain high over the next three to four years.”
The AEP has estimated that by the end of 2021, the number will reach 10 million households and demand for new power will rise by 30 per cent.
The report said Australia had the highest average price of electricity in the world, but it had the lowest average cost of electricity, which was due partly to the fact electricity costs were rising because of new regulations.”
Australia has the lowest electricity cost in the OECD and is the only country that has lower average prices than other OECD countries, despite being one of the world’s largest producers of renewable power,” the group said.
The AEMC said that while renewable energy would continue to play an important role in Australia’s future energy mix, the energy transition would take a lot longer than previously predicted.”
The impact of the transition on the grid and the grid transition itself will be significant, particularly in terms of the amount of demand for renewable energy in the grid,” the association said.
The AECC said the AEMT and AER had also found that the industry needed to make more investment in renewable technology and research.”
Investment in the renewable energy sector is essential for the continued success of the sector, which requires an efficient and resilient system,” the ACM said.